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We can find out the difference between stockholder management and stakeholder

management from several aspects. In the aspect of management object, stockholder

management faces to stockholders, while stakeholder management faces to stakeholders that is anyone who has an interest in your project or will be affected by its deliverable or output.

Secondly, they are different in management goals. In details, stockholder’s management aims to maximize stockholder wealth, while stakeholder management pays more attention on creating value for all stakeholders, which can be explained that a firm is a contract network setting up by every stakeholder, so the arrangement of corporate governance must take into account appropriately and satisfy the interest requests of each stakeholders.

Thirdly, in the aspect of company profit distribution, there would be some interest conflicts between stockholders and stakeholders. For example, managing a firm only for stockholders can lead to harmful affect for other entities(stakeholders) in some situations.

Then according to the management strategy, Stakeholders management is keen on identifying stakeholders, assessing their interest and influence, developing communication management plans, engaging and influence stakeholders. If we compare the perspectives on stockholders and stakeholders, we find that the former are all about money whereas the latter are the humane side of business coupled with money. This is the key aspect that the corporations prefer to pay attention to money only ignoring the stakeholders under the mode of stockholder management.

What’s more, these two management modes offer different managers. In details, different stakeholders, such as financiers, employees, suppliers, employers, administrators, taxpayers and also local community are managed by different leaders. Stakeholders managers need to focus on those stakeholders who have the greatest power (which can influence the firm) legitimacy and urgency (requiring to have immediate attention). And as for shareholders, they are the owners of company and shareholders controls the board of directors, which is accountable to the shareholders.

Furthermore, stockholder management and stakeholder management have different

management activities. The former focuses on records management, financial management, financial management, business rules architecture, business reports, elections and voting, correspondence and communications, and self-service shareholder web support, etc. However, the latter one is concerned about ethic items which means stakeholder managers should make decisions what activities can profit to stakeholders in an ethical way during a long period. In addition, corporate social responsibility (CSR) is similar to corporate sustainability management which integrates the economic, environmental and social aspects of business management. According to the Enterprise-related group theory, it can be defined that corporate

should not only take responsibility to shareholder, but also stakeholders. And World Business Council for Sustainable Development (WBSCO) giving the definition of CSR is that corporate promises to obey the ethnic rules, make contribution to the development of the economy and promote the life quality of employees with their families and local communities. When it comes to the environmental dimension, corporate should pay attention to the related problem of climate change and pollution, such as gas emissions and industrial water emissions.

In other words, corporate ought to participate in constructing the environmental management system together with the government and offer some suggestion of drawing up the environmental-related laws and regulations. Otherwise, making great use of energy is also very significant. For example, improve the efficiency of water and recycle the industrial water during the process of production. What’s more, clean energy is recommended to use, such as natural gas. Then it is necessary to build up “Enterprise internal control mechanism of environmental protection” and “individual responsibility-implement mechanism”.

As for the aspect of social performance in corporate social responsibility, corporate should focus on the areas of labour training and helpful work indicators. They include some key performances which are employment, workplaces safety and health, education and practice. In other words, corporate has responsibility of social employment, at the same time, corporate ought to make safeguard strategies for employees in different positions and open courses and practice activities pertinently. Additionally, human rights are also a significant indicator for social performance. Having equal working opportunity and same amount gratuity for men and women is the target in social dimension. What’s more, making corporate management on the basis of public policy is also another indicator, which is belonging to society indicator. Then it is necessary to build up product responsibility indicator, which means products and services labelling policy.

And for governance dimension, corporate should not only conduct their investment in different markets but also supervise bribery and corruption. The corporate governance is related to corporate prosperity and its responsibility. So it requires corporate managers have related skills and knowledge in order to have consummate governance about CSR. Also, building rules and regulations and setting up departments are essential. With more and more opportunities in market, the company is trying to find more available resources to make investment and long period development strategy. So we take a risk management because risk is a constitution of innovation and inquiry of long time business running. The board of directors is responsible for risk management, so corporate governance is also focusing on board effectiveness to integrated business strategy and functions.