The Study of Stakeholders Perspective-based Co-governance Model Selection
|Keywords||Stakeholders Corporate Governance Conflict of interest Benefits coordination|
After the 1960’s, the field in the study of the firm theory gradually differentiated into the supremacy of shareholder and stakeholder theories, which have totally different meanings in the sense of corporate governance. The former takes shareholder as the real owner of the enterprise, while the later stakeholders. Over the years, the focus of academic research is on the supremacy of the shareholders. This theory makes a directly passive consequence in practice when companies operate blindly with the objective of maximizing economic benefits, take the profit as the key to success, or even win short-term benefits at the expense of the interests of other stakeholders, resulting in a series of serious social and environmental consequences. Since the 1980’s, the stakeholder theory has developed rapidly. Faced with so many serious consequences, managers began to consider how to take the interests of corporate stakeholders into consideration seriously, to fully coordinate conflicts of interests of stakeholders, and achieve balance of interests in the structure of corporate governance.China is in a special period of economic and social transition, so there is a blind worship of economic profit through enterprises and a weak awareness of environmental protection, and the systemetic environment of social responsibility is not perfect too. For listed companies, there are still some problems in fulfilling their social responsibilities and in taking stakeholders into full account in corporate governance process, so damages to stakeholders often occur. However, the theoretical research on corporate governance in China is late and the perspective of the research is relatively narrow. The academic study from the perspective of stakeholders in corporate governance is few, and there are misunderstandings of the corporate governance currently. Corporate governance focuses more on internal corporate governance structure, neglecting the role of external governance mechanism based on product market, manager market and capital market, in which other stakeholders form an important part.Thus with the influence of globalization of social responsibilities and the rapid development of China’s domestic economy, the study of stakeholder theory will become increasingly important. This thesis aims to explore how to build stakeholder-based co-governance model in China.There are all together seven chapters in the thesis. The first chapter mainly states the background and significance of the research, making a literary review and comprehensive analysis on stakeholder theory, corporate governance theory, and related theories, which is followed by the map of the thesis and the description of the research method. The second chapter is about the theoretical basis of stakeholder-based corporate governance theory and the categorization of stakeholder theory. It expounds the meaning of corporate governance and defines the concept of corporate governance in the thesis. Then it discusses the theoretical basis of the categorizaion of stakeholders and proposes the categorization in this thesis. Finally, it makes a review of the theory of firm contracts, the new concept of ownership, resource dependence theory and human capital theory, which provide the necessary theoretical support for the progressive development of the stakeholder theory from various aspects. The evolution of these theories promote the rapid development of the stakeholder theory and perfect it gradually. Chapter III describes the interests of the stakeholders and the conflict coordination mechanism. It firstly discusses the interests of the stakeholders and the conflicts between them, which is followed by coordination mechanism of interest conflicts among stakeholders. By discussing the balance principle of the effective operation of corporate governance, the writer proposed the coordination mechanism of stakeholders’interests. The fourth chapter describes the status of corporate governance in China. With the analysis of the status quo, categorizaion of china’s corporate governerance models is provided, which is followed by the analysis of the problems in current corporate governance. Chapter five is a case study, introducing the conduction of stakeholder-based corporate governance in Huaibei Mining Group, analying how the group coordinates the conflicts of interest between the operators, the government, local communities, employees and other stakeholders. Based on the analysis above, shortcomings of the governernance structure is pointed out. Chapter six is about the construction of practical ways to realizing stakeholder-based corporate governance and possible models. The corresponding ways to realize stakeholder-based corportate governance are proposed first. And then illumination on the necessity to further the establishment of stakeholder-based corporate governance is explained. With the theory and case study, what kind of corporate governance model should be established in our country is discussed in the end of this chapter. In chapter seven a conclusion is naturally reached. And the hope as to continue to improve the stakeholder-based co-governance theory in the future is clearly expressed.The conclusion is reached from the study. Corporate Governance in China should strengthen the harmonious existence between internal corporate governance structure and external governance mechanism, arrange the personnel structure reasonably within the board, let more workers participate in corporate governance, and relate the selection of co-governance models to the life cycle of the corporate in order to realize the cordination between life cycle and governance mechanism.