Corporate Governance: Agency Theory Vs. Stewardship Theory

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Corporate Governance: Agency Theory vs. Stewardship Theory

Finding and maintaining balance within a company can be a tough job, especially for newer businesses. When it comes to things such as Corporate Governance though, it must be handled efficiently and thoroughly while also being checked upon and updated as often as possible. “Corporate governance is the system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of a company 's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community.” (Investopedia, 2015). Without a strong back bone of governance within a company, any one of the
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Both the budget of a company and what it invests in can all be determined by constant communication and strategic planning that is well thought out, checked upon, and checked again to ensure maximum profit and benefit to the company and its shareholders. One large portion of Strategic planning, one of the first steps in a company in fact, is implementing succession planning to ensure that all decisions down the line fall into place within the company or businesses core values. Both Strategic management and planning go hand in hand with each other. You must plan and manage a company to yield results and provide positive growth so the shareholders are entertained and have a reason to still hold stake within the company. A Board of Directors that is strong will hold this to be true and continue to make the life of those involved positive and business to continue to move forwards.
Board of Directors Back in 2015, Best Buy came acquired a new CEO during one of their more negative times in stocks and progress as a company. Having seen negative numbers for the last few years, the new CEO Hubert Joly, restructured the Board of Directors of the company to suit what he thought would lead Best Buy back to its more profitable times. “Speaking on a panel at the Fortune Global Forum in San Francisco, a three-day event that kicked off Monday in San Francisco, Best
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