Exploration of the Manager’s Responsibility and the Role of Stakeholders

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Exploration of the Manager’s Responsibility and the Role of Stakeholders

Most scholarship on corporate governance in the last two decades has focused on the relationships between shareholders and managers. Some people think :“ A manager’s responsibility should be to the shareholders alone”, but in my opinion manager have the responsibility to all of the stakeholders, which a group with a direct interest in the way on organization is performing and action it takes, include the firm’s employees, shareholders, customers, suppliers and local community. In a company managing for value, the company’s goal is to deliver value to shareholders. This does not imply that the company is managed for value to
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Employees often have a significant role in company governance which follows the instruction of manager. For example, a business selling books to customers by mail order form a warehouse may be organized into a number of departments. In buying and marketing department, the employees deal with advertising and handle the production of the mail order catalogue. In warehousing and dispatch department, they are responsible for putting together customers` order and checking wrapping, addressing and transporting parcels. In orders department, receiving orders from customers and informs the warehouse, also processing all the paperwork involved in buying and selling of books. In administration and finance department, the employees deal with payment and receipt of cash. All employees work hard in each department to ensure that the company performing well.

Shareholders play an active role in the company’s governance. Shareholders make a financial investment in the company, which entitles those with voting shares to elect the directors. Shareholders do not normally have any rights to be involved directly in company management. Their connection to company management is typically via the Board of Directors, they may remove the directors or refuse to re-elect them. Managers are usually appointed by

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