Good corporate governance promotes the success of the business and encourages strategies that consider the interests of shareholders and other stakeholders. Here’s a few responsibilties which you might find useful for your ACCA P1 Governance Risk and Ethics studies.
Directors responsibilities towards stakeholders
- Treat employees fairly
- Be a good corporate citizen (obey rules and regulations)
- Trade ethically
- Return some of the profits to society
Keep in mind, the shareholders/owners of the business cannot manage the business themselves, and have to rely on agents (directors and others). The shareholders have the right to remove the directors from office if there is any misconduct or breach of trust.