Corporate Governance: Principles, Policies and Practices, 3e

1

Other Stake Holders of the Company

Chapter Outline

• Introduction
• Corporate Governance and Employees
• Corporate Governance and Customers
• Corporate Governance and Institutional Investors
• Corporate Governance and Creditors
• Corporate Governance and the Community
• Corporate Governance and the Government

Introduction

It is a well-accepted principle nowadays that corporations exist not only for the benefit of its part-owners called shareholders, but also to serve the interests of other stakeholders in society. It is fallacious to argue anymore that the immediate concern of a company is exclusively towards the shareholders, while other stakeholders are only of a peripheral importance to it. A corporate does not exist by itself and it does not operate ...