A review of the two main competing models of corporate governance: the shareholdership model versus the stakeholdership model

Abstract

This paper reviews the impact of the shareholdership and stakeholdership models in guiding managers through the most appropriate way of delivering business objectives. The shareholder model is the traditional Anglo-American system of corporate governance, which focuses on the maximisation of shareholder wealth, while the stakeholder model is considered to be exemplified by the German system of corporate governance and focuses on meeting the needs and expectations of a wider range of stakeholder groups. The results from this study indicate that a combination of both models could enable management to deliver the needs of stakeholders groups, while in the long term maximizing wealth for the shareholders

A stakeholder approach to international and national sport sponsorship

“…Thus, lack of communicating the sponsorship to target stakeholders (shareholders) might be another reason that explains the results of the study. Contrary to the stakeholder perspective that embraces accountability and communication as two basic elements of corporate governance (Nwanji and Howell, 2007), international sponsoring firms do not seem to take into account the interests of their shareholders nor communicate their business investments to them. Consequently, an under‐exploitation phenomenon of the opportunities provided by a sponsorship investment becomes apparent here making a stakeholder approach even more imperative.…”

Corporate Governance Mechanisms, Privatization Method and the Performance of Privatized Companies in Jordan

“…One of the criticisms is on the performance of these companies due to the lack of a corporate governance (CG) mechanism, that is, a majority of these corporations have substantial government ownership (Wu 2007). Property rights theory suggests that private companies perform more efficiently and profitably than SOEs (Boardman & Vining 1989) due to the need for SOEs to fulfill the profit maximization objective (shareholder theory) and the social welfare objective (stakeholder theory) (Nwanji & Howell 2007). In contrast, private enterprises focus more on the efficient intra-firm allocation of resources to maximize profit (Boubakri et al 2005a).…”

Community Satisfaction in the Design, Implementation and Motivation of the Company Community on Batik Alam Malon Indonesia Power CSR Project

“…The implementation of CSR on growing issues is also something to anticipate. David and Foray [7], McElroy [8], Sneider et al [9], Nwanji and Howell [10], Husted and Allen [11], Turker [12], Vilanova et al [13], Melo and Garrido-Morgado [14], Kumar [15] by addressing society's needs and demands through the inclusion of CSR-related. activities, firms are able to provide better products and services.…”