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Shareholder Democracy
Shareholder democracy is a concept relating to the governance structure of modern corporations. In this structure, shareholders bear ultimate controlling authority over the corporation, as they are the owners and may exercise control within their economic rights. Although shareholders own the corporation, they generally take a passive interest in managing the day-to-day operations of the company. Shareholders who are interested in actively influencing corporate affairs are called activist shareholders. In the American system, shareholders typically elect the company's board of directors on an annual basis. These directors bear a fiduciary responsibility to the shareholders and must represent the interests of the shareholders (as opposed to the interests of themselves or any third parties) when making decisions. In turn, the board may select the individual executives and officers who operate the company, and they may also act on behalf of the corporation when establishing company poli ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corporation
A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and recognized as such in law for certain purposes. Early incorporated entities were established by charter (i.e. by an ''ad hoc'' act granted by a monarch or passed by a parliament or legislature). Most jurisdictions now allow the creation of new corporations through registration. Corporations come in many different types but are usually divided by the law of the jurisdiction where they are chartered based on two aspects: by whether they can issue stock, or by whether they are formed to make a profit. Depending on the number of owners, a corporation can be classified as ''aggregate'' (the subject of this article) or '' sole'' (a legal entity consisting of a single incorporated office occupied by a single natural person). One of the most att ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Friedman Doctrine
The Friedman doctrine, also called shareholder theory is a normative theory of business ethics advanced by economist Milton Friedman which holds that the social responsibility of business is to increase its profits. This shareholder primacy approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. As such, the goal of the firm is to increase its profits and maximize returns to shareholders. Friedman argues that the shareholders can then decide for themselves what social initiatives to take part in, rather than have an executive whom the shareholders appointed explicitly for business purposes decide such matters for them. The Friedman doctrine has been very influential in the corporate world from the 1980s to the 2000s, but has attracted criticism, particularly since the financial crisis of 2007–2008 (caused by various financial institutions which engaged in excessive risk for profit maximization, causing th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Corporate Governance
Corporate governance is defined, described or delineated in diverse ways, depending on the writer's purpose. Writers focused on a disciplinary interest or context (such as accounting, finance, law, or management) often adopt narrow definitions that appear purpose-specific. Writers concerned with regulatory policy in relation to corporate governance practices often use broader structural descriptions. A broad (meta) definition that encompasses many adopted definitions is "Corporate governance” describes the processes, structures, and mechanisms that influence the control and direction of corporations." This meta definition accommodates both the narrow definitions used in specific contexts and the broader descriptions that are often presented as authoritative. The latter include: the structural definition from the Cadbury Report, which identifies corporate governance as "the system by which companies are directed and controlled" (Cadbury 1992, p. 15); and the relational-structura ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gary Gensler
Gary Gensler (born October 18, 1957) is an American government official and former investment banker serving as the chair of the U.S. Securities and Exchange Commission. Gensler previously led the Presidential transition of Joe Biden, Biden–Harris transition's Federal Reserve, Banking, and Securities Regulators agency review team. Prior to his appointment, he was professor of Practice of Global Economics and Management at the MIT Sloan School of Management. Gensler served as the 11th chairman of the Commodity Futures Trading Commission, under President Barack Obama, from May 26, 2009, to January 3, 2014. He was the Under Secretary of the Treasury for Domestic Finance (1999–2001), and the Assistant Secretary of the Treasury for Financial Markets (1997–1999). Prior to his career in the federal government, Gensler worked at Goldman Sachs, where he was a partner and co-head of finance. Gensler also served as the CFO for the Hillary Clinton 2016 presidential campaign. President ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Environmental, Social And Corporate Governance
ESG (environmental, social, and corporate governance) data reflect the negative externalities (costs to others) caused by an organization with respect to the environment, to society and to corporate governance. ESG data can be used by investors to assess the material risk the organization is taking and by the organization itself as metrics for strategic and managerial purposes. Investors may also use ESG data beyond assessing material risks to the organization in their evaluation of enterprise value, specifically by designing models based on assumptions that the identification, assessment and management of sustainability-related risks and opportunities in respect to all organizational stakeholders leads to higher long-term risk-adjusted return. Organizational stakeholders include but not limited to customers, suppliers, employees, leadership, and the environment. Since 2020, there has been accelerating interest in overlaying ESG data with the Sustainable Development Goals (SDG ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Andrew Ross Sorkin
Andrew Ross Sorkin (born February 19, 1977) is an American journalist and author. He is a financial columnist for ''The New York Times'' and a co-anchor of CNBC's ''Squawk Box.'' He is also the founder and editor of DealBook, a financial news service published by ''The New York Times''. He wrote the bestselling book ''Too Big to Fail'' and co-produced a movie adaptation of the book for HBO Films. He is also a co-creator of the Showtime series '' Billions''. Early life and education Sorkin was born in New York, the son of Joan Ross Sorkin, a playwright, and Laurence T. Sorkin, a partner at the law firm Cahill Gordon & Reindel. Sorkin graduated from Scarsdale High School in 1995 and earned a Bachelor of Science in communications from Cornell University in 1999 where he was a member of Sigma Pi fraternity. He is not related to writer Aaron Sorkin nor defense lawyer Ira Lee Sorkin. His family heritage and religion are Jewish. Career Journalist Sorkin first joined ''The New Yor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Plutocracy
A plutocracy () or plutarchy is a society that is ruled or controlled by people of great wealth or income. The first known use of the term in English dates from 1631. Unlike most political systems, plutocracy is not rooted in any established political philosophy. Usage The term ''plutocracy'' is generally used as a pejorative to describe or warn against an undesirable condition. Throughout history, political thinkers and philosophers have condemned plutocrats for ignoring their social responsibilities, using their power to serve their own purposes and thereby increasing poverty and nurturing class conflict and corrupting societies with greed and hedonism. Examples Historic examples of plutocracies include the Roman Empire, some city-states in Ancient Greece, the civilization of Carthage, the Italian merchant city states of Venice, Florence, Genoa, the Dutch Republic and the pre-World War II Empire of Japan (the ''zaibatsu''). According to Noam Chomsky and Jimmy Carter, th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Egalitarianism
Egalitarianism (), or equalitarianism, is a school of thought within political philosophy that builds from the concept of social equality, prioritizing it for all people. Egalitarian doctrines are generally characterized by the idea that all humans are equal in fundamental worth or moral status. Egalitarianism is the doctrine that all citizens of a state should be accorded exactly equal rights. Egalitarian doctrines have motivated many modern social movements and ideas, including the Enlightenment, feminism, civil rights, and international human rights. The term ''egalitarianism'' has two distinct definitions in modern English, either as a political doctrine that all people should be treated as equals and have the same political, economic, social and civil rights, or as a social philosophy advocating the removal of economic inequalities among people, economic egalitarianism, or the decentralization of power. Sources define egalitarianism as equality reflecting the natural st ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Transamerica Corporation
The Transamerica Corporation is an American holding company for various life insurance companies and investment firms operating primarily in the United States, offering life and supplemental health insurance, investments, and retirement services. The company has major offices located in Baltimore, Maryland; Cedar Rapids, Iowa; Denver, Colorado; Norwood, Massachusetts; Exton, Pennsylvania; Harrison, New York; Johns Creek, Georgia; Plano, Texas; and St. Petersburg, Florida. Additional affiliated offices are located throughout the United States. In 1999, it became an independent subsidiary of multinational company Aegon. Transamerica funds the Transamerica Institute, a nonprofit foundation which comprises the Transamerica Center for Retirement Studies and the Transamerica Center for Health Studies. History In October 1904, A.P. Giannini founded the Bank of Italy in San Francisco. In October 1928, Giannini created a holding company that he named the Trans-America Corporation, whi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Shareholder
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal owner of shares of the share capital of a public or private corporation. Shareholders may be referred to as members of a corporation. A person or legal entity becomes a shareholder in a corporation when their name and other details are entered in the corporation's register of shareholders or members, and unless required by law the corporation is not required or permitted to enquire as to the beneficial ownership of the shares. A corporation generally cannot own shares of itself. The influence of a shareholder on the business is determined by the shareholding percentage owned. Shareholders of a corporation are legally separate from the corporation itself. They are generally not liable for the corporation's debts, and the shareholders' liabil ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Principal–agent Problem
The principal–agent problem refers to the conflict in interests and priorities that arises when one person or entity (the "agent") takes actions on behalf of another person or entity (the " principal"). The problem worsens when there is a greater discrepancy of interests and information between the principal and agent, as well as when the principal lacks the means to punish the agent. The deviation from the principal's interest by the agent is called " agency costs".''Pay Without Performance'', Lucian Bebchuk and Jesse Fried, Harvard University Press 2004preface and introduction Common examples of this relationship include corporate management (agent) and shareholders (principal), elected officials (agent) and citizens (principal), or brokers (agent) and markets (buyers and sellers, principals). In all these cases, the principal has to be concerned with whether the agent is acting in the best interest of the principal. The concepts of moral hazard and conflict of interest re ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Representative Democracy
Representative democracy, also known as indirect democracy, is a type of democracy where elected people represent a group of people, in contrast to direct democracy. Nearly all modern Western-style democracies function as some type of representative democracy: for example, the United Kingdom (a unitary parliamentary constitutional monarchy), India (a federal parliamentary republic), France (a unitary semi-presidential republic), and the United States (a federal presidential republic). Representative democracy can function as an element of both the parliamentary and the presidential systems of government. It typically manifests in a lower chamber such as the House of Commons of the United Kingdom, and the Lok Sabha of India, but may be curtailed by constitutional constraints such as an upper chamber and judicial review of legislation. Some political theorists (including Robert Dahl, Gregory Houston, and Ian Liebenberg) have described representative democracy as polyarchy. Rep ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
