Published date:Feb 19 2025

Journal Title: KnE Social Sciences

Issue title: The International Conference on Economic and Sustainable Development (ICESIDE)

Pages:51 - 60

DOI: 10.18502/kss.v10i5.18098

Anis Wulandarianiswulandari@student.ub.ac.idDoctoral Program of Accounting, Faculty of Economic and Business, Universitas Brawijaya

Iwan TriyuwonoDepartment of Accounting, Faculty of Economics and Business, Universitas Brawijaya

Lilik PurwantiDepartment of Accounting, Faculty of Economics and Business, Universitas Brawijaya

Noval AdibDepartment of Accounting, Faculty of Economics and Business, Universitas Brawijaya

The objective of this research is to examine how to enable stakeholders to live in perfect harmony in a company. To achieve this, the research employs a literature review with an integrative or critical review approach. The data used is secondary data collected through documentation techniques. The findings of this research indicate three ways to ensure that stakeholders can live in perfect harmony in a company: 1) increasing the transparency of financial reporting by enhancing information disclosure; 2) establishing the most efficient contracts using optimal incentive schemes; and 3) creating a mechanism that aligns the goals of principals and agents, referred to as corporate governance (CG), by monitoring and controlling all management decisions to ensure that these decisions align with the interests of shareholders and motivate managerial behavior to enhance the company’s wealth.

Keywords: stakeholders, corporate governance

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