Compare and Contrast the Three Major Corporate Governance Approaches

Layal Zarka IB 500 The Global Economy Final Exam try Compare and contrast the troika major corporate political science approaches we rent studied (shareholder working groovyism, stakeholder capitalism, and evoke ownership). Which frame do you think is the best at increase long-run economic performance of the firm and why? The stinting measure defines Corporate Governance as a, set of systems, principles and processes by which a company is governed. They provide the guidelines as to how the company potbelly be directed or controlled such that it can touch its goals and objectives in a manner that adds to the value of the company and is excessively beneficial for all stakeholders in the long term. The stakeholders mentioned in the definition equal to all parties involved with the firm, these could be: the board of directors, management, shareholders to customers, employees, cut into unions, etc. That being said, firms employ resistent corporate governanc e approaches; these differ due to reasons such as differences in countries (the hoidenish where the firm is located) sub judice traditions, social and cultural values, and the structure of capital markets in somebody countries.

The underlying difference in the approaches mentioned is refer with the amount of try mark placed on the parties that have an concern in the firm and/or those who contribute to the success (profits) of the firm, or as previously mentioned, the stakeholders. Moreover, there are three apparent approaches or models of corporate governance: shareholder capitalism, stakeholder capitalism, and state ownership. shareowner capitalism, in addition known as the Angl o-Saxon model places emphasis on the interes! ts of shareholders, rather than former(a) stakeholders such as employees. In other words, the focus of the firm is on the holders of wealth; those who have invested capital in the firm (shareholders/owners) and put their money at risk. In addition, shareholder capitalism uses the board of directors as the main(prenominal) source...If you want to wee a full essay, order it on our website: OrderEssay.net

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