The Underpinnings of Corporate Governance Approaches and the Shareholder Value Model

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An assessment of the underlying assumptions and factors that drive governance approaches and structures necessarily begins with defining the corporate purpose. Is the corporation’s overarching objective to make quality goods and services that enrich the lives of customers? Or is it to provide generous pay and job security to, and facilitate the professional development of, its employees? These question have been at center of a long-standing debate between two models of corporate governance that is outlined in this Director Notes.

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