International Corporate Responsibility Series

Volume 4, 2009

A Survey of International Corporate Responsibility

Muhammad Z. Mamun, Mohammad Aslam
Pages 317-335

Conflicting Approaches of Managers and Stockholders in a Developing Country
Bangladesh Perspective

In general it is found that the corporate managers and stockholders possess totally different view about good governance of a company. Managers strongly believe that governance of their companies is quite well but stockholders view that it is very poor. The study found that the groups differ in perception especially in terms of turnover, production, capital, leverage, debt service, credit policy, solvency, human resource, recruitment, technology, customer satisfaction, internal control, strength, opportunity, competition, industry position, collective bargaining agent (CBA) issues, and economic remedies; whereas, they have similar view in terms of adequacy of research fund, company weaknesses and threats, contingency plans, presence of political influence. The managers think that the companies do not have enough retained earnings and these should not be distributed among stockholders, but the stockholders think otherwise. Managers always perceive that they are underpaid whereas stockholders express the opposite view. Each group believes that it is the other group that dominates the decision-making. Both the group wants to have mutual interaction but stockholders want to interact more than the mangers. The study noted that corporate managers’ tenure is more with the company than a stockholder’s holding of stock. The study also found that the managers are better educated than the stockholders. The study observed serious gender biasness both in management position and stockholding of the corporations. Though both the groups belong to same age level but their distribution shows stockholders enter into the share market at an early age.

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