The function of stakeholders in corporate governance

The corporate governance framework should recognize the rights of stakeholders as stipulated by law and encourage active cooperation between companies and these entities in the creation of wealth, employment, and financially sound enterprises.

A. The corporate governance framework should ensure that the rights of statutory stakeholders, such as employees, suppliers, and creditors, are respected.

B. Where the rights of stakeholders are protected by law, every entity should be able to obtain effective redress for the violation of their rights.

C. The corporate governance framework should allow for mechanisms that increase the active participation of stakeholders.

D. Where stakeholders are part of the corporate governance process; they should have access to relevant information.