DB1: Needs of the Stakeholder and Shareholder Obligations The discussion board question to be addressed in this paper is how can a company focus on the needs of its stakeholders without neglecting its shareholder obligations? Answering this question will require defining both stakeholders and shareholders, identifying the corporation’s responsibility to each and then stating the solution. Shareholder According to Lewis and Weber, a shareholder is “a person, group, or organization owning
Words: 824 - Pages: 4
that the fiduciary have towards their clients or shareholder. This relationship it’s based on the trust that clients/shareholder have in the Management or in the financial institution; besides these are delegated to satisfy the interests and the needs of client/shareholder, without taking advantage from their position ( potential conflict of interests). Cite; and explain The fiduciary duty it’s the relationship that exist between shareholders and top management, and between clients and financial
Words: 284 - Pages: 2
their customers? In this paper I will discuss Freidman’s goal of the firm. Milton Freidman felt as though the goal of the firm was to keep the shareholders at the front line of their decisions. When an insurance company decides what they are going to do to target their customers they make sure that they are going to have a profit so that the shareholders are happy. Another aspect of this paper is going to be on whether or not the government should have a role in the goal of the firm rights of those
Words: 810 - Pages: 4
Role of StakeHolder Lucy Hernandez November 23rd, 2015 MGT/420 Professor Rita Foster Role of StakeHolder - Intro The word “stakeholder” means any person with an interest in the business -- someone who can contribute to the company’s growth and success or who benefits from its success. There are various stakeholders in a business such as Employees, StockHolders, Customers, Vendors, and even the community. Each plays different roles and their involvement time is also different from each other
Words: 773 - Pages: 4
Perspective 1: "CSR is a waste of shareholder resources." 1. It is hard for companies to communicate their efforts in CSR to shareholders and investors. Although companies have progressed from only 20% of public companies publishing CSR reports to 72% from 2011 to 2013, there are still no universal standards established for reporting CSR information. Therefore, even the best CSR efforts can lose their value simply because the efforts are not communicated to users of financial statements. This
Words: 692 - Pages: 3
packages * Provide job relevant training/job enrichment * Offer social activities to promote good relations in the company * Provide good strategic management that enables employees to keep their jobs for a long time * 3) Shareholders a) To gain financial profit and share in company wealth and growth, stay informed about current organizational direction, voice opinion on
Words: 474 - Pages: 2
Among Stakeholder? A stakeholder is a group or individual who is affected by or can affect the success of an organization. This includes internal and external parties of an organization. They have interest on the organization such as employees, shareholders, customers, suppliers, competitors and so on. Stakeholder also can be said as the one who influence the decision making of an organization. Thus, the company should give importance to its stakeholders. This is to ensure a good relationship between
Words: 559 - Pages: 3
(Baifu), and formed five new subsidiaries in China. However, it should be noted that Danone and Baifu did not directly invest in the JV, but established Jin jia Investment, a new corporation in Singapore instead with Danone as their controlling shareholder. In this case, Wahaha Group held 49 percent of the entire shares of JV while Jinjia owned the remaining 51 percent. The reasons why Danone decided to form a joint venture rather than a wholly owned subsidiary or other formats can generally be
Words: 1579 - Pages: 7
When we operate a business, maximizing company’s wealth is more suitable than maximizing its profit as a goal of the business, it is because maximizing profits relates to profits only, and it assumes away the problems such as uncertainty of returns and the timing of returns, while maximization of the market value of the owners’ equity has take into all the considerations of all the financial decisions, such as wealth for the long term; risk or uncertainty; the timing of returns; and the stockholders’
Words: 723 - Pages: 3
to customers. Most recent one being, a 50 billion lawsuits brought by Bank of America shareholders. When the market crashed (recession hit or financial crisis) in 2008, Bank of America acquired Merrill Lynch. The shareholders claim that the bank’s executives including former chief operating officer Kenneth Lewis failed to disclose a loss of $15.31 billion after the acquisition of Merrill Lynch. Shareholders believed that the loss was hidden to ensure they did not vote against the transaction
Words: 343 - Pages: 2
