A social stakeholder model

Abstract

Corporate governance is a concept that attracted the attention of jurists and economists in the US in the 1970s and 1980s. The concept then became widespread on the European continent in the 1990s. More recently, corporate governance elements have turned up in other fields as well. When applied to social institutions, this model is referred to as ‘social governance’. The (corporate) governance concept can be valuable in the social area. The debate on corporate governance is much more fundamental than the debate on the relationship between shareholders and management or between minority and majority shareholders. The essence of corporate governance can be found in the pursuit of a situation of ‘checks and balances’, which gives the stakeholders the possibility to complement and control each other. This article analyses the different stakeholders in the social area, their legitimisation as stakeholders and the practicability of a social stakeholder model.