Fn0136 Shareholders, Directors and Rewards

FN0136 Directors, Shargonholders and Rewards 1.Task one Shareholder/Stakeholder system b) The first transmission line for shareholder theory is that if shareholders are the owners then they should be able to make alone the decisions as they have property concerns which ought to be protected. Stakeholder theory denies owners the right to realise how their property allow for be used as it takes so many different groups of people and their emergencys into consideration. Secondly the directors are in an agency relationship with shareholders, they act as agents for the shareholders, using missionary post powers to conduce the affairs of the company in the best interest of the shareholders. Shareholders have the right to remove the directors from move outice so they will work for shareholders in bringing in as more profit as it can only benefit them as well. The final furrow for shareholder theory is that corporations ought to be run for the benefit of shareholders because all other constitutions are better off as a result. Costs can be lessen by pressures that are exerted to reduce production costs and in like manner because many contracts will not be monitored.

The first argument for Stakeholder theory follows when the theory is used descriptively to explain special corporate characteristics and behaviours, the model can serve as mannikin for testing nay empirical claims, including instrumental predictions relevant to the stakeholder concept. . When the theory is used instrumentally the second argument arises as it makes a lodge between stakeholder approaches and commonly desired objectives such as profitableness or growth. It is therefore implying that with stakeholder principles and practices it achieves conventional corporate performance objectives as well or better than rival approaches. The third argument comes from when the stakeholder theory is also used normatively, by accepting that all interests of stakeholders are of intrinsic value. This means that each group of... If you want to get a full essay, order it on our website: Orderessay

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