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Stakeholder perspective of corporate social responsibility and governance mechanisms

Author: YangZiYe YinKaiGuo From: www.yourpaper.net Posted: 2010-05-09 23:36:54 Read:
First, the study of the theory of corporate social responsibility weapons: Stakeholder Theory
On corporate social responsibility, since the concept was first proposed in 1923, Shelton (Sheldon), academia and relevant organizations to many different interpretations, but reserved its meaning is roughly the same, namely: corporate social responsibility of the company shareholders to bear financial responsibility (the pursuit of the interests of the shareholders), but also other interests of creditors, employees, suppliers, customers, government, communities and other stakeholders committed to social responsibility and ecological environment. Social responsibility corporate social responsibility, both legal and moral social responsibility.
Stakeholders, from Stanford University in 1963, a research team since the concept was first proposed, the academic community has proposed many different interpretations (Mitcheleta1. 1997), summed up the main three definitions (Yang Ruilong and Zhou Yean , 2000):
First, the most widely used definition, that all affect the company's operating activities or operating activities affected people or groups are the company's stakeholders, including shareholders, creditors, employees, suppliers, customers, government, the social organization and social groups, the peripheral members of society; range between broad and narrow definition, only that the company is directly related to the person or group is the company's stakeholders, the definition excludes the government, social organizations and society groups, members of society and the company is not directly related to the interests of stakeholders; Third, the most narrow definition, the person or group that only under "bet the company" is the company's stakeholders. From the point of view of corporate social responsibility, we use the concept of the broad interests of stakeholders. Although the broad stakeholder concept is difficult to quantify or determine the boundary, but this is conducive to the full commitment to social responsibility, to promote the sustainable development of the responsibility of society as a whole.
Although the ideology of corporate social responsibility is a long history, but the long-term study of corporate social responsibility did not draw scientific answer is "a bunch of looking for evidence of the theory of" until stakeholders by theory only after the formation of the corporate social responsibility study firmer theoretical basis (Shen Hongtao, 2005). As WoodandJones (1995) pointed out that, since the 20th century 9O stakeholder theory "most closely" theoretical weapon to study the issue of corporate social responsibility.
The stakeholder theory concluded by the various stakeholders on the nature of the firm "contract" (JensenandMeckling 1976; FreemanandEvan, 1990, etc.). This means that (Zhao-Guo Zhang, 2009): (1) the goal of the enterprise is the pursuit of maximizing corporate value, not only to maximize shareholder wealth; (2) the material basis of the Enterprise Development various stakeholders invested capital (resources) In addition to the equity capital invested by the shareholders, creditors debt capital investment, human capital investment by the employees, suppliers and customers into the market capital, government investment in public environmental capital (to develop the public system, to provide information, guidance and maintenance of the ecological environment, etc.) and active community support; (3) the interests of the enterprise is the common interests of the various stakeholders, not only the interests of shareholders; (4) institutional arrangements (including corporate governance) to be equal treatment of interests , corporate ownership concentration distributed to shareholders; (5) basic model of enterprise development businesses with a variety of stakeholders to maintain long-term cooperation is not only dependent on the shareholders. These shareholders first "logic radically different point of view, the basic idea of ??the stakeholder theory. Visible, the rich the ideology of social responsibility, stakeholder theory is an important theoretical basis to study the issue of corporate social responsibility. Stakeholder theory for the study of corporate social responsibility, not only to contribute to the development of corporate social responsibility, but also to make more micro-based stakeholder theory closer to reality.
Second why the company committed to social responsibility: based on the stakeholder theory to explain
Why the company committed to social responsibility is the study of corporate social responsibility must first answer a fundamental question. If this problem is not solved, not from theory to convince opponents of the idea of ??corporate social responsibility, and promote the development of the theory of corporate social responsibility, and no one is able to improve the company's sense of social responsibility on the practice, prompting the company to consciously committed to social responsibility.
Use of stakeholder theory, and from different angles to analyze the reasons of corporate social responsibility, and I believe that: (1) as a set of relational contracts from the enterprise point of view, corporate social responsibility is a self-interest also altruistic optimal choice. In the modern market economy, enterprise relational contract, including a contract between the enterprise and the shareholders, including contracts between enterprises and other interests of creditors, employees, suppliers, customers, government and public stakeholders. These contracts through the formal system or informal system provides for the rights and responsibilities between enterprises with various stakeholders. Enterprises from various stakeholders get a variety of resources and a sound business environment, it must bear the corresponding responsibility to safeguard their rights and interests. In this sense, the contractual relationship between the businesses with a variety of stakeholders is actually a "trading relationship" that corporate responsibility of various stakeholders, and compared with various stakeholders to provide resources. Corporate social responsibility can greatly improve the quality and efficiency of such transactions (Donaldson, 1999), the enterprises from other stakeholders beyond shareholders get a variety of resources and good operating environment, thereby enhancing the competitive advantage in an important way. Therefore, the company to take on social responsibility is not a simple altruism, but a both self-serving and altruistic optimal choice, can be converted to the steady growth in financial income (ZHANG Zhao-Guo et al., 2008). (2) the agency relationship from the company's point of view, corporate social responsibility is a signal transduction mechanisms. According to the stakeholder theory in modern companies, the principal-agent relationship in addition to the principal-agent relationship between shareholders and managers, including creditors, employees, suppliers, customers, government and community stakeholders and operators or controlling shareholders of the agency relationship between (HillandJones, 1992). In the case of asymmetric information between companies with stakeholders to form a dynamic game: on the one hand, the company expects from the various stakeholders, where access to a variety of resources and good operating environment; but on the other hand, various stakeholders but do not know which company you can trust, should be given support. In order to solve the problem of asymmetric information, the company must pass a certain signal to all stakeholders to own distinction other companies implied that he is trustworthy. Of course, the various stakeholders will not easily believe that this information, so this signal issued by the company is required to pay the price (cost) to prevent other companies from easily imitate. Corporate social responsibility is a signaling mechanism to help the company to win the trust and support of the various stakeholders, and to maintain long-term cooperation between the company and stakeholders. (3) From the value or role of corporate social responsibility, corporate social responsibility is a mechanism of action affecting the company's results of operations. The large number of empirical studies have shown that corporate social responsibility has a positive impact on the company's results of operations role (Romaneta1., 1999; Maron, 2006; Wu, 2006, etc.). Domestic and foreign literature to this effect be summarized as six mechanisms that avoid risks (such as a variety of litigation risk), to reduce waste (such as increased use of recycled materials, etc.) to improve the relationship with the regulatory authorities, and enhance brand reputation improve internal interpersonal relationships to improve employee productivity and reduce financing costs (Shanghai Stock Exchange Research Center, 2007). Yin Ge Fei, et al (2008) summed up the four mechanisms that reduce risk, has excellent and stable employees, open new markets and reduce operating costs. In short, the company committed to social responsibility is a mechanism affect the company's results of operations, and be able to create new value for the company. In summary, corporate social responsibility is not only conducive to the interests of the various stakeholders, to promote the harmonious development of the entire socio-economic, but also help to enhance the company's competitiveness, improve the company's operating results, and to promote the sustainable development of the company.
Third, how to promote corporate social responsibility: to build stakeholder governance model
How to promote corporate social responsibility, from the institutional level, the key is to establish the mechanisms of adaptation corporate governance and corporate social responsibility. This corporate governance mechanism to solve the company in a variety of agency problems, the relationship between the processing company with interests related set of institutional arrangements (Qian, 1995).
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