The Conflict And Balance Of Interest In Corporate Governance

The influence of socialization on corporates is a visible tendency in the development of corporates. The relation between persons becomes closer under the condition of socialized manufacture and any action that centers on its own development at the cost of others benefits is universally opposed and publicly criticized. The development of corporates should be accordance with the demand of society. The corporate has evolved from a single profit instrument of shareholders into a member of social family. The corporate should carry out its social responsibility in pursuit of maximum interest of its shareholders. Under the influence of the theory of corporate stakeholders, the corporate governance has developed from unilateral-governance into co-governance in which employees, creditors as well as the other stakeholders play an important role.At first, the corporate governance structure is to deal with the owners' control over managers and the power distribution among corporate organizations owing to the separation of ownership from management. The fiduciary duty of managers, the allocation of power among corporate organizations and the protection of shareholders mainly focus on the interest balance between its owners and managers. The main task of traditional corporate governance structure is to protect theshareholders as well as to generate the maximum enthusiasm of managers. The old -fashioned corporate governance structure that was based on the shareholder-orientated system has been widely criticized under the influence of the theory of corporate social responsibility. The corporate is called the only structure that is inferior to the state whose influence on politics, economy and culture becomes more and more obvious with the advent of large and international corporates. The society has accepted the viewpoint that the corporate should carry out its corporate social responsibility for managers, employees, creditors, consumers and suppliers besides its duty of pursuing maximum profit for shareholders. The corporate governance structure embodies a new meaning. The essence of corporate governance structure is to distribute the corporate power among stakeholders and to frame the mechanism of balance of rights among corporate organizations.The modern corporate governance is to balance the interest conflict among stakeholders and to consolidate the profit and social responsibility so as to maintain the corporate sustainable development. The monograph in question discusses the corporate governance from the viewpoint of conflict and balance of interest among corporate stakeholders. Compared with the traditional theory that was based on the balance of organizations' power or on the interest conflict between owners and managers, my monograph has its innovation.The monograph consists of six chapters. Chapter 1, entitled by the basic theory of conflict and balance of interest in corporate governance. Chapter 2, entitled by the conflict and balance of interest between the corporate and the pubic. Chapter 3, entitled by the conflict and balance of interest among shareholders. Chapter 4, entitled by the conflict and balance of interest between shareholders and managers. Chapter 5, entitled by the conflict and balance of interest between shareholders and employees. Chapter 6, entitled by the conflict and balance of interest between shareholders and creditors.