‘…shareholder theory is in itself a sound theory and it is likely that some executives following this theory, rightly or wrongly, have brought disrepute to it. The stakeholder theoretical framework, on the other hand, has yet to assert its influence. It has not managed to supplant shareholder theory because the concept is not yet unambiguously defined, which makes it difficult for the framework to become operational in practical business settings’ (Tse, 2011).
Critically evaluate the appropriateness of shareholder theory and stakeholder theory as frameworks for corporate governance. Comment on which is the most suitable. You should make reference to both the paper by Tse (2011) and other academic literature.