Professional Documents
Culture Documents
Shareholder
theory
Stakeholder
theory
CSR
3 theories of corporate governance
• Stockholder theory means a company’s primary responsibility is to
increase earnings for its shareholder
• Stakeholder theory says that a business must consider the interests not
just of shareholders but of all of a company’s stakeholders
• CSR, known as corporate social responsibility says that a company not
only to make a profit but also to make a positive impact on the
community
Benefits of CSR
1. CSR commit not only to the well-being of employees and other
stakeholders but also to the broader society
Such as: Donating to charities or community organizations, developing
environmentally sustainable products, reducing waste and energy
comsumption
2. CSR can help companies attract quality employees.
A survey of 13- to 25-year-olds found that 80% want to work for a
company that cares about how it impacts and contributes to society
Compare 3 theories
• Similar:-both provide the goal of increasing profits for the company
- all have corporate governance models other
• Differences:
Shareholder: increase income for shareholders, those who own shares of a
company.
CSR: not only make a profit but also create a positive impact on the community
and the environment.