0
Differentiate between value for money and profit maximization concept in corporate governance?
Wiki User
∙ 14y ago
differentiate between value for money and profit maximization
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
According to Mr. Price’s Corporate Governance Report, they differentiate between governance and effective governance. Explain what these differences are?
Xnmxxx
What is the difference between corporate governance and corporate social responsibility?
Corporate governance is for the accountability to shareholders, corporate social responsibility is for the accountability to remaining other stakeholders.
Explain relationship between financial and non-financial performance indicators in achieving corporate governance compliance?
relationship between financial and non-financial performance indicators in achieving corporate governance compliance.
What is corporate govern?
Corporate governance is a set of relationships between a company's directors, its shareholders and other stakeholders. it also provides structure through which the objectives if the company are set, and the means of obtaining these objectives and monitoring performance are determined. In short, corporate governance is a system by which an organisation is controlled.
What has the author Stephen Bloomfield written?
Stephen Bloomfield has written: 'The Small Company Pilot' 'Theory and practice of corporate governance' -- subject(s): BUSINESS & ECONOMICS / Management, Corporate governance 'Reading Between the Lines of Company Accounts'
What is the meaning of corporate governance?
Corporate governance is most often viewed as both the structure and the relationships which determine corporate direction and performance. The board of directors is typically central to corporate governance. Its relationship to the other primary participants, typically shareholders and management, is critical. Additional participants include employees, customers, suppliers, and creditors. The corporate governance framework also depends on the legal, regulatory, institutional and ethical environment of the community. Whereas the 20th century might be viewed as the age of management, the early 21st century is predicted to be more focused on governance. Both terms address control of corporations but governance has always required an examination of underlying purpose and legitimacy. - - James McRitchie, 8/1999 http://corpgov.net/library/definitions.html
According to John Boatright in What is Wrong -- and What is Right -- with Stakeholder Management the stockholder model of corporate governance is or should be grounded in sociological analysis of mark?
John Boatright suggests that the stockholder model of corporate governance should be grounded in an awareness of the social nature of markets. This involves recognizing that markets are not purely self-regulating and that stakeholders' interests are interconnected, requiring a balance between shareholder wealth maximization and considering the impact on other stakeholders. Boatright argues for an approach that incorporates ethical considerations and engages with broader societal goals.
What is the difference between profit maximization and value maximization?
discount rate
What is the difference between business ethics and corporate governance?
Business ethics refers to the moral principles and values that guide the behavior of individuals in a business environment, while corporate governance refers to the system and structure in place to oversee and direct the actions of a company's management in order to protect the interests of stakeholders. Essentially, business ethics focuses on individual behavior and decision-making, while corporate governance focuses on the overall management and oversight of a company.
What is difference between business ethics and corporate governance?
the main difference between corporate governance and ethics is that the ethics are the philosophical and morally decent standards that a corporation attempts to stand by, while governance processes are the means by which a corporation attempts to remain as ethical as possible while still making a profit. The governance obligations and operations of a corporation vary depending on its type. For example, a sole-proprietorship--a business owned by a single person--has different financial necessities and legal obligations than a massive, publicly-traded corporation
What is the difference between stock price maximization and price maximization?
Profit maximization does not reflect (1) the timing of profits and (2) the riskiness of different operating plans. However, both of these factors are reflected in stock price maximization.
Is there a difference between corporate profit maximization and maximization of shareholder wealth?
Sure, profit maximization relates to profits *only* while shareholder wealth also involves total company equity, debt ratios and any of 15 other financial performance measure ratios. Management could focus on profit maximization over a longer period of time, say, 40 years (Toyota), while the shareholder would rather see stock values and corporate total value increase immediately (get in and get out) (90% of American manufacturers). If management focused on short-term profit maximization, say at the expense of long term sales revenues, then shareholder wealth (stock price) could actually decrease as a result of the loss of market share. The conflict of interests between shareholders and executives is an example of the "principle-agent problem."
