A firm (management) is expected to ensure the rights of all stakeholders and satisfy their needs equally (O’Higgins,
2001). A firm is also expected to recognize not only its direct stakeholders (e.g. stockholders, customers, employees)
but also indirect ones (e.g. society in general, environment, NGOs) that are affected by a firm’s activities because it is
a sustainable way for companies to proceed (Vinten, 2001). Basically, corporate governance is a system based on
principles, processes and business results (Günay, 2008). It is important to care about interests of all stakeholders in
order to establish this system. In other words, as it is posited by the stakeholder theory, the benefits of all stakeholders
but not only investors should be considered (Freeman, 1984; Gibson, 2000).
A firm (management) is expected to ensure the rights of all stakeholders and satisfy their needs equally (O’Higgins,
2001). A firm is also expected to recognize not only its direct stakeholders (e.g. stockholders, customers, employees)
but also indirect ones (e.g. society in general, environment, NGOs) that are affected by a firm’s activities because it is
a sustainable way for companies to proceed (Vinten, 2001). Basically, corporate governance is a system based on
principles, processes and business results (Günay, 2008). It is important to care about interests of all stakeholders in
order to establish this system. In other words, as it is posited by the stakeholder theory, the benefits of all stakeholders
but not only investors should be considered (Freeman, 1984; Gibson, 2000).
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A firm (management) is expected to ensure the rights of all stakeholders and satisfy their needs equally (O’Higgins,
2001). A firm is also expected to recognize not only its direct stakeholders (e.g. stockholders, customers, employees)
but also indirect ones (e.g. society in general, environment, NGOs) that are affected by a firm’s activities because it is
a sustainable way for companies to proceed (Vinten, 2001). Basically, corporate governance is a system based on
principles, processes and business results (Günay, 2008). It is important to care about interests of all stakeholders in
order to establish this system. In other words, as it is posited by the stakeholder theory, the benefits of all stakeholders
but not only investors should be considered (Freeman, 1984; Gibson, 2000).
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