Shareholder vs. Stakeholder: Two Approaches to Corporate Governance
Most managers in the United States would shed workers to sustain profitability, whereas Japanese firms often consider job security one of their primary concerns. Both approaches, and their economic impact, can be explained through insider and outsider models of corporate governance. A new study examines the different results of similar corporate governance models by studying firms in different countries and closely examining the relationship between … [ Read more ]
Content: Article | Authors: Miguel Ángel Ariño, Miguel Ángel Rodríguez, Roberto García, Silvia Ayuso | Source: IESE Insight | Subject: Corporate Governance
Engaging Stakeholders Improves Financial Results
In contrast to the more traditional shareholder approach, the newly emerging stakeholder theory insists that business is about more than just making money. It’s about all stakeholders’ interests, and declares that companies have a social and environmental responsibility to the community at large. In the paper “Maximizing Stakeholders’ Interests: An Empirical Analysis of the Stakeholder Approach to Corporate Governance,” Silvia Ayuso, Miguel Ángel Rodríguez, Roberto … [ Read more ]
Content: Article | Authors: Miguel Ángel Ariño, Miguel Ángel Rodríguez, Roberto García, Silvia Ayuso | Source: IESE Insight | Subject: Social Responsibility (ESG)