The Role of Stakeholders in Corporate Governance: Theoretical Approach
Purpose - The aim of this paper is to analyse and evaluate the role of stakeholders in corporate governance from a theoretical perspective. To achieve this goal, the following tasks have been raised: what theories and different approaches emphasize the relationship between stakeholders and the organization (analysis of the theoretical aspects of the stakeholder concept); how stakeholders influence corporate governance decisions (assessment of the external environmental impact on corporate governance); what are the key factors that influence stakeholder action (stakeholders’ role in an organization decision-making process). Methodology – The theoretical methods (comparative, analytical and systemic). Findings – Stakeholders have a significant and extensive influence on the corporate governance. Scientific research shows that the role of stakeholders in corporate governance can be negative (e.g. extra disturbances) or positive (e.g. increasing competition). While engaged in decision-making processes organizations need to give power to stakeholders, i.e. the power of influence. This would enable stakeholders to help to achieve sustainable governance of the organization. Stakeholders generally attempt to achieve integrity, transparency, respect, environmental standards and implementation of accounting. They also require a positive resource policy, the involvement and participation of organizations in addressing important social issues such as reduction of social exclusion, community renewal, education and cultural issues, promotion of employee volunteering activities. Research implications – The list of sources used for comparative analysis is not exhaustive. Originality – The role of stakeholders in the organization decision-making process is constantly raising scientific debate. The solutions of the changing corporate governance environment must satisfy the needs of management practice. The significance of stakeholders’ role in the organization is taken very seriously by scientists (Gil-Lafuente, Paula, 2013). The scientific analysis that has been carried out will help to better understand the role of stakeholders in the corporate governance and the factors that determine the relationship between stakeholders and the organization.
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