Understandably Corporate Governance has evolved through the decades being an integral part of how an organization is run. When we talk about Corporate Governance, we talk about various factors which affect the governance of the organization as a whole and decision- making processes of firms which are important longing towards long-term success. So, considering Corporate Governance issues, the general principles focus on governance problems that result from the separation of ownership and control. However, this is not simply an issue of the relationship between shareholders and management, although that is indeed the central element. In some jurisdictions, governance issues also arise from the power of certain controlling shareholders over minority
Principal-Agent relationships occur in many forms in business. Understanding these relationships is crucial for investors in order to make better investment decisions. • Theory of Principal-Agent Relationships As discussed in another article, the modern corporation can be conceptualized in a variety of ways. The set-of-contracts view illustrates that relationships between and among multiple stakeholders is complicated and provides many opportunities for one party to gain at the expense of another party. The Theory of Principal-Agent Relationships recognizes that there can be friction between relationships when one person acts for someone else.
The agency theory describes the relation between two parties, principals and agents (Jensen & William, 1976). Principals are recognized as Shareholders while Agents as company’s executives. The agency theory also discusses how to organize this relation between these two parties in a decent approach so one of them determines the work while the other party does the work (Jensen & William, 1976). It is known also that the principal hires an agent to do the work. For example, in companies, the principals are the shareholders of the company, delegating to the agent (CEO), to accomplish tasks on their behalf.
“Profit margins determine whether businesses sink or swim and this is especially true in the hypercompetitive ecommerce industry” (Shpanya, 2014, p. 1). As the quote suggests, healthy profit margins are critical for any business to ensure longevity and success in the eCommerce realm. To achieve this one should look at ways to improve profitability and ensure the brand’s trustworthiness within the market sector. Therefore, this paper will investigate ways to improve profitability for Superior Genetics Marketplace (SGM) as well as how to protect their reputation to sustain the brand image within a brand sensitive market. Monetary funds are a finite resource (Shane, 2012) and therefore SGM plans to make a concerted effort to identify ways to reduce costs and utilize eCommerce to increase cost savings.
It is the major responsibility of the managers as agents to fulfill the requirements by the owners as principals. Even though many different parties demand a social contribution by companies, acting according to a social responsibility doctrine is rather a fallacy according to Friedman (1970) since corporations as artificial persons do not have responsibilities. Consequently, the arguing for social responsible companies are not only unjustified but also might lead managers to a behavior that does not correspond to the owner’s interest. Friedman (1970) highlights the importance of the business owner’s desire for all actions taken by the managers in a company which is usually to make as much money as possible while conforming to basic societal norms and values. Thus, more in-depth social engagement usually does not correspond to what shareholders expect manager to practice on behalf of the business but they rather want their agents to concentrate on profit generating.
CSR is defined as a form of corporate self-regulation combined into a business representative. Many debates and reports focus on the nature, benefit or business opportunities that can be achieved when performing corporate social responsibility. For that, CSR can be "a source of opportunity, innovation, and competitive advantage"
In addition, there are four core national interests defined in the contemporary Cambodia’s foreign policy: sovereignty and territorial integrity, security and political stability, economic development and poverty reduction, and identity-image building. Located between the two big neighbors (Thailand & Vietnam), the question of sovereignty and territorial integrity historically and geopolitically is at the core of both domestic politics and foreign policy. However, after joining ASEAN and the increasing
2011, explain how social innovation and corporate social responsibility (CSR) highly rely on each other with a view that in order to be sustainable the adoption of innovation is required to be “energy efficient” and help reduce over consumption of resources. On the other hand the requirement of innovation isn’t as much as the customers are willing to choose them in any situation which is why CSR can be implemented at a minimal level. Various theories have been discussed “such as the Agency Theory” where in the agency problem takes a toll implying a wrong use of company resources and benefiting only the managers while Freeman (1984) holds out an argument to explain that along with the interest of the management, other participants of the company such as the customers, workers, related companies and suppliers interests should be focused on as well which highlights the Stakeholder Theory that emphasizes on looking after interests of various other stakeholders as well while focusing on the organization in order to have continuous support by these interest groups. The Stewardship Theory highlights the fact that organizations should take up decisions
The organization is socially responsible when it is concerned about people, environment and society in general with whom and where the company conducts business. Socially responsible marketing is taking moral actions that promote a positive influence on all the stakeholders of the organization, including employees, society as well as consumers, and shareholders(Kotler and Armstrong). The central responsibility of marketers in this regard is to set and communicate the decisions of the organization that in further will impact different communities with which they cooperate(Kotler and Armstrong). Consumers have the power and right to decide which companies succeed or fail. In this way, marketers have a principal responsibility to guarantee
Instead of burning fossil fuels that will be depleted within short generation, alternative energies such as the wind turbine or solar panels needs to be implemented to sustain and care for the resources that remain. The concept of reducing our Carbon footprint in the world is the more modern way of looking at sustainable living, in which the World realises humans have not used resources wisely. By looking at the changes over the past centuries, an International network of scientists have unanimously concluded that human society is altering natural functions in three fundamental ways. And consequently, they were able to define four basic conditions that must be met if we want to maintain the environmental services that sustain human society. To become a sustainable society, we must eliminate our contributions to: No1.