Corporate governance
According to Letza, S, Sun X & Kirkbride .J, (2004) corporate governance is theorized on two front’s shareholder and the stakeholder’s perspectives. Even though advocates of each try and justify their position by acknowledging its superiority, rational and applicability of each model. In some situations, current social expectations are higher than the narrow expectations of the shareholders or vice versa. An example some of the partially government owned companies stakeholder interest override shareholders. Therefore; Letza, S, Sun X & Kirkbride .J, (2004) saw that corporate governance a changing and must be researched broadly bringing both the shareholder and stakeholder perspective.
There are several options that are opened to management where the current social expectations are higher than the narrow expectations of the shareholders. One option is using influential stakeholder theory. The corporation should cater for diverse shareholders’ interests save for the interests of shareholding. As Letza,Sun & Kirkbride (2004) opine, that act makes the corporation more justifiable Using the stakeholder theory, the corporation justifies the worthiness of the stakeholder on the basis of being a stakeholder as an effectual way of advancing competence, productivity, competing and financial accomplishment. What makes this theory fit as an option to management is that it uses the long-established Anglo-American approach on corporate governance of private possession. It proposes that there should not be quitting of the right possession privileges but the possession rights shouldn’t be majorly focused more on the shareholders but also worthy to be claimed by stakeholders.
The second option open to the management is the trusteeship of the manager. This suggests managers should be reliable and consistent leaders of the corporation and that they should perform their duties conscientiously in ways directed on getting the most of the corporate returns and the proceedings of the shareholders. However though, this option doesn’t fail to point out that managers may strive for hogging the limelight through ways such as excellent achievement. Therefore, managers can be trusted for the gain of corporations.
The last option open for the management is viewing the corporation as a social unit. As far as in the 19th century, it was observed that modern corporations as being extensive in extent and that they called for exceptional knowledge in managing. This was through various ways such as owning of shares, trading of stocks and thus such scale made the shareholders more of investors than the proprietors. Thus, the involvement of so many parties brought the probability of risks. Thus, corporations turn out to be more of sovereign units and with their self objectives, assets and tasks.

Reference
Letza, S, Sun X & Kirkbride .J, (2004). Shareholding Versus Stakeholding: a critical review of corporate governance. Retrieved on October 26, 2011 from http://www.tbss.pro.br/arquivos/textos/13454152.pdf