Topic outline

  • Unit 2: Shareholders, stakeholders, and corporate control

    In Finland, it is generally taken for granted that the purpose of a company is to generate profit for its shareholders. Limited company law (osakeyhtiölaki) specifies this as the purpose (toiminnan tarkoitus) of limited companies (osakeyhtiö). Yet, different companies types, such as social enterprises or family companies, follow different principles and different countries follow varying norms. In this unit, we briefly review the evolution of the debate and institutional norms of corporate control, the role of shareholders, managers, employees, and other stakeholders. We read about the different perspectives on the topic, such as fiduciary duty and social responsibility.

     

    This unit includes three articles on corporate control to ensure a diversity of perspectives. But for the sake of saving time, I have highlighted the parts that are essential for the purpose of this unit and you do not have to read more than that to reach full points.

    In addition, read or skim the pages 59 – 70 of Scott (2014) so that you understand the Table 3.1 “Three pillars of institutions”. The purpose of this article is to provide a theoretical framework for analysis. In the group discussion of this unit, your task is to identify elements of the three pillars of institutions in the other readings. Also, discuss some or all of the general guiding questions for group discussion that are listed in the course syllabus.

     

     

    Article (academic, media or other)

    Why this article / what part of the article

    Kim, S., Karlesky, M. J., Myers, C. G., & Schifeling, T. (2016). Why companies are becoming B corporations. Harvard Business Review, 17, 2-5.

    Read the full article. It is short. (4 pages)

    Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91.

    You only have to read the parts highlighted in yellow. They are parts of the introduction, managerial implications, and conclusion. (7 pages highlighted)

     

    Davis, G. F., & Thompson, T. A. (1994). A social movement perspective on corporate control. Administrative Science Quarterly, 39, 141-141.

    Read only the highlighted parts. They are the abstract, introduction, a short part in between, and parts of the conclusion. (6 pages highlighted)

    Company forms at https://www.infofinland.fi/en/living-in-finland/work-and-enterprise/starting-a-business/company-forms

    A brief description of alternative company forms in Finland. (1 page)

    Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities. Sage publications. Pages 59-70.

    The first edition was published in 1995.

    The purpose of this article is to provide a theoretical framework for analysis. The three pillars framework of Richard Scott is a classic. It describes how institutions are upheld by a regulative pillar, a normative pillar, and a cultural-cognitive pillar. (11 pages included) Read or skim the pages so that you understand the Table 3.1 “Three pillars of institutions”.

    Sajari (8.12.2019). Posti-kiista herätti kysymyksen omistajaohjauksesta ja yhtiöiden hyvästä hallinnoinnista: professorit kertovat, mitä se on. Helsingin sanomat. https://www.hs.fi/talous/art-2000006336235.html

    Voluntary news article for reflection, analysis and/or discussion. In Finnish.

     


    • Folder icon
      Unit 2 Readings Folder
    • Forum icon
      Unit 2 Discussion forum
    • Assignment icon
      Unit 2 Group discussion report Assignment
    • Assignment icon
      Unit 2 List of group discussion attendants Assignment
    • Turnitin Assignment 2 icon
      Unit 2 Indidvidual essay Turnitin Assignment 2
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Unit 1: Introduction to institutions and institutional theory
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Unit 3: Sociotechnical institutions: Bias in AI and algorithms