The stakeholder theory suggests that corporations have a responsibility not only towards shareholders but also towards a wider range of stakeholders, including employees, customers, suppliers, and the community. It emphasizes the importance of balancing the interests of various stakeholders rather than solely focusing on shareholder wealth maximization.


The agency theory explores the relationship between principals (shareholders) and agents (managers) in a corporation. It suggests that conflicts of interest may arise between shareholders and managers due to different goals and information asymmetry. The theory proposes mechanisms, such as executive compensation and board structures, to align the interests of shareholders and managers.


The social contract theory argues that corporations have an implicit agreement with society, where they receive certain privileges and benefits in exchange for fulfilling their social responsibilities. These responsibilities include ethical conduct, environmental sustainability, and social contributions. The theory emphasizes the need for corporations to go beyond legal compliance and actively engage in socially responsible behavior.


The triple bottom line (TBL) approach expands the traditional focus on financial performance to include social and environmental dimensions. It measures a corporation's success based on three pillars: economic (profits), social (people), and environmental (planet). The TBL approach encourages corporations to consider the impact of their actions on society and the environment, alongside financial outcomes.


The concept of CSR suggests that corporations have a responsibility to contribute positively to society and the environment. It involves voluntary actions that go beyond legal requirements and aim to create long-term sustainable value. CSR initiatives may include philanthropy, ethical sourcing, environmental conservation, and employee welfare programs.


Various ethical decision-making models provide frameworks for individuals and organizations to make ethical choices. These models include:

- Utilitarianism: Decisions are made based on maximizing overall happiness or utility.
- Deontology: Decisions are guided by adherence to moral principles and duties.
- Virtue Ethics: Decisions are based on developing and practicing virtuous character traits.
- Ethical Relativism: Decisions are determined by cultural or individual beliefs.

These theories and models provide a foundation for understanding and analyzing corporate governance and ethics. Studying them can help in developing a comprehensive understanding of the subject and its implications in the management field.