The Focus of Chapter 4: Employee as a Stakeholder in a Business

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Essay #: 061890
Total text length is 5,336 characters (approximately 3.7 pages).

Excerpts from the Paper

The beginning:
The Focus of Chapter 4: Employee as a Stakeholder in a Business
The focus of Chapter 4 is the idea of the employee as a stakeholder in a business. There is a new social contract which is evident between corporations and their employees in which the employee is expected to participate in developing their own value to the business, and thereby reaping the reward of a long and prosperous relationship with their employer. Employees are no longer reliant on their company to guarantee them a life-long job. In this way, the employee is a stakeholder in the business. If the business does well, and they are a part of that success, then the employee will have a better chance of keeping their work there over the long term.
At the same time, the...
The end:
..... for all U.S. public company boards, management, and public accounting firms, and as noted in the chapter affects all Canadian companies that trade on U.S. stock markets.
The Board of Directors can have a number of different roles in partnership with Shareholders. They can approve the company’s capital budget, set recruitment standards, pay rates and compensation for individual senior management, review the accounting of the firm, and many other roles. Some Boards are split up into committees to manage these different functions, depending on the size of the company. As the chapter states, with shareholders becoming more involved in the governance of the company, Boards and Management have to be more careful in their decision-making as well.