Original scientific paper
Stakeholder theory and corporate governance: The nature of the board information
Benoit Pige
; Franche-Comté University, Faculty of economics and business
Abstract
The directors board has a main function of controlling the top executives. When adopting a view of the firm as the shareholders property, it seems that the best executives' incentive is to give them stock options. However, when considering the firm as a framework of both explicit and implicit contractual relations, it appears that the top executives job is not only to satisfy the firm shareholders, but more generally to maintain the firm coalition alive and even to develop it. In that case, the directors board needs to receive some more detailed information in order to evaluate the top executives. We propose to rely on a reporting based on both an activity analysis and a stakeholder approach. The balanced scorecard model could even be a main support for the elaboration of the reporting information to the board.
Keywords
stakeholder theory; corporate governance; balanced scorecard
Hrčak ID:
184554
URI
Publication date:
13.7.2017.
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