A Study of the Reform of Corporate Governance Mechanisms in China from the Perspective of Stakeholder Theory

DOI

10.2991/978-2-38476-323-8_93How to use a DOI?

Keywords

Stakeholder Theory; Corporate Governance; Chinese Company Law; Board Diversity; Information Disclosure Mechanisms

Abstract

Article 20 of China’s 2023 Company Law marks the first explicit introduction of the terminology of ‘stakeholders’; this represents a significant shift for China. Thus, it is necessary to examine the interaction between Stakeholder Theory and China’s corporate law. A review of traditional corporate governance models reveals that Stakeholder Theory may contribute to addressing the limitations of shareholder primacy, offering room for growth in both academic and practical fields. At the same time, the definition of stakeholders in China’s corporate law differs from traditional theoretical frameworks and the structure of the ESV model of the UK. This reform requires formulating specific and feasible plans, including balancing the director’s duties of commercial judgment and social judgment, designing specialised stakeholder committees, and strengthening information disclosure mechanisms to enhance corporate transparency and accountability.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Pengyu Yuan
PY  - 2024
DA  - 2024/12/23
TI  - A Study of the Reform of Corporate Governance Mechanisms in China from the Perspective of Stakeholder Theory
BT  - Proceedings of the 2024 7th International Conference on Humanities Education and Social Sciences (ICHESS 2024)
PB  - Atlantis Press
SP  - 827
EP  - 835
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-323-8_93
DO  - 10.2991/978-2-38476-323-8_93
ID  - Yuan2024
ER  -