Agency Theory and Stakeholder Theory

The video tutorial discusses corporate governance, focusing on the roles and obligations of corporate members, including officers, directors, and shareholders. It introduces agency theory, explaining how directors and officers act as agents for the corporation and shareholders. The tutorial also covers agency principles like duties of care, loyalty, and good faith, and how these principles influence corporate structure and stakeholder interactions.

What is the primary focus of corporate governance?

Explain the agency theory in the context of corporate governance.

What are the duties that directors and officers must adhere to according to agency principles?

Discuss the relationship between shareholders and the corporate entity as described in the text.

How do agency principles affect the actions of individuals within a corporation?