Corporate Governance: The Role of Management and Other Stakeholders in Good Governance

Yomi Olalere

Abstract


The wealth and success of organizations has largely been attributed to the influence of the shareholders’ financial contribution, and their capacities to shape the future of the company they invest. This assertion subscribes to the traditional corporate law principles that companies must focus on protecting the ownership (shareholders) by establishing mechanisms for wealth maximization. Interests that favour the stakeholder groups such as employees, creditors, vendors, customers, government or other regulatory agencies are generally construed as the means of protecting the shareholders, or an and effort to boost the ego of the management. Many scholars have argued that the interests of the stakeholders can be understood as constraining factors inhibiting the rights to maximize the owners’ wealth. This paper seeks to establish the compatibility that exists between the shareholders and stakeholders, not as rivals but as partners in progress towards maintaining organization’s sustained growth and high productivity. It further clarifies the roles of stakeholders, and how their interests could impact on the company.

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Copyright (c) 2021 Yomi Olalere

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.