Companies want to balance the interest of different stakeholders using the legal, contractual, organizational, and governmental infrastructure.
- Legal infrastructure refers to rights as per law and recourse available when they are violated.
- Contractual infrastructure refers to rights created by contractual relationships.
- Organizational infrastructure refers to internal control, corporate governance practices, etc.
- Governmental infrastructure refers to regulations imposed by the government.
While Anglo-American frameworks are more shareholder-friendly, frameworks in mainland Europe and Japan are more in line with stakeholder theory. However, there is a growing realization of a more inclusive corporate governance.