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BUS320: Corporate governance and social responsibility

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Advanced Human Resource Perspectives (BUS320)

   

Added on  2020-05-04

BUS320: Corporate governance and social responsibility

   

Advanced Human Resource Perspectives (BUS320)

   Added on 2020-05-04

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Running head: COMPANY’S SOCIAL RESPONSIBILITY0Corporate Governanceand Social Responsibility
BUS320: Corporate governance and social responsibility_1
COMPANY’S SOCIAL RESPONSIBILITY1Executive SummaryCorporate governance principle is the set of regulations and policies that ensure thatcompany is fulfilling their duties towards multiple stakeholders, the fulfillment ofstakeholders interest in necessary that for the growth of the business. The stakeholders are theindividual and group which affected by or has a financial interest in a corporation; the firmhas a social responsibility towards its stakeholders. Many theorists did not prefer thestakeholder approach because they believe that it shifts the main focus of a company fromprofit making to social welfare which is unfavorable for its development. The company cancontribute to the growth of society by adopting a stakeholder approach in their businessoperations. Many theories of justice also support the principle of stakeholder approach and itsimpact on the benefit of the community. The directors implement stakeholder strategies, suchas CSV, CSR or circular economy, to ensure that the enterprise is fulfilling interest of eachstakeholder. Below mention is some suggestions that directors can apply while implementingstakeholder strategy:Firstly, the directors should change their language, instead of using the phrase“maximising shareholder value”, they should shift it to “maximising our company’svalue”.Instead of fearing stakeholder approach, the directors should analyse the company’sstructure to ascertain different stakeholders and their requirements.The director should formulate policies for multiple stakeholders, and the preference ofeach stakeholder should be equal.The directors must evaluate the external or internal factors that affect the interest ofstakeholders, and they should modify their policies according to such changes.The directors should continuously monitor the stakeholder policies to avoid anydiscrimination and ensuring that the company meets proper guidelines.
BUS320: Corporate governance and social responsibility_2
COMPANY’S SOCIAL RESPONSIBILITY2Table of ContentsIntroduction................................................................................................................................3Purpose.......................................................................................................................................4Scope..........................................................................................................................................4Literature Review.......................................................................................................................5Benefit of Society by Stakeholder Approach.............................................................................7Theories of Justice Regarding Stakeholder Approach...............................................................7Other Stakeholder Theories........................................................................................................8Conclusion and Recommendations..........................................................................................10References................................................................................................................................11
BUS320: Corporate governance and social responsibility_3
COMPANY’S SOCIAL RESPONSIBILITY3IntroductionThe corporate governance policies implemented by a company ensure that thecorporation is fulfilling interest of each stakeholder. The directors are responsible forascertaining the importance of each stakeholder, and they have to formulate regulations thatare focused on the satisfaction of their interest. Traditionally, the theorists provides thatmaximisation of shareholders interest in the primary goal of an enterprise. Shareholder theoryasserts that the shareholder faces the primary risk in a firm by investing their capital,therefore, it is the moral duty of directors to maximise their return. The stakeholder theoryensures that the directors do not violate the moral rights of different stakeholders in a firmand equal balance should be maintained between the interest of shareholders andstakeholders. A company can benefit a large section of society by implementing a broaderapproach. This report will analyse various article on shareholder and stakeholder approach todetermine their role in the development of company and community. The benefit ofstakeholder approach over the society will be discussed in the report as well. Further, thereport will evaluate theories of justice to analyse the moral duties of directors towards thestakeholders and provide a few suggestions for better implementation of stakeholderapproach.
BUS320: Corporate governance and social responsibility_4

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