balancing stakeholders and shareholders

Good Corporate Government: Balancing Stakeholders and

ShareholdersAlmira Siagian 19009048Aryudho Mahardi 19009063M. Luthfihadi 19009134Astrid Saraswati 19009157Heldira Larashati 19009158Handry Marta Y 19009167

Corporate Government

• “The system by which companies are directed and controlled” (Cadbury Committee, 1992). More specifically framework by which the various stakeholder interests are balanced.

• Interaction between various participants in shaping corporation’s performance and the way it is proceeding towards.

Good Corporate Governance

• Transparency• Fairness• Accountability• Responsibility• Work Ethics

Good Corporate Government

System of structuring, operating and controlling a company such as to achieve:• Culture based on a foundation of business ethics• Fulfilling long-term strategic goal of the owners

while taking into account the expectations of the key stakeholders

• Maintaining proper compliance with all the applicable legal and regulatory requirements under company’s activities

What would be the relation between

“good corporate government” with the

balancing of “stakeholders and shareholders”?

Stakeholders and Shareholders

• Stakeholders:

Stakeholders and Shareholders (ctd.)

• ShareholdersOne who owns shares of stockin a corporation along witha right to declared dividendsand to vote on certaincompany matters.

Main concept:

Every corporation need to balance the needs of both stakeholders and

shareholders.

Shareholders Theory

VS

Stakeholders Theory

Case Studies

• http://www.detikfinance.com/read/2011/03/30/133551/1604703/5/citibank-tutup-rapat-kasus-penggelapan-dana-nasabah-oleh-md

• http://cetak.kompas.com/read/2011/03/30/04322366/citibank.dibobol.karyawan.sendiri

• http://metro.vivanews.com/news/read/212635-nasabah-tewas--bi-panggil-citibank