 Bismillahirrahmanirrahim and assalamu alaikum ladies and gentlemen, we were studying the different theories of corporate governance in the previous sessions and we looked at the agent theory and then it was followed up with the stewardship theory and today we are going to be looking at the stakeholders theory which is a very important theory in the domain of corporate governance. Now when we are talking about the stakeholders theory, the shareholder approach argues that corporations have a limited set of responsibilities. Responsibilities primarily consist of obeying the law and maximizing the shareholder wealth. The logic of shareholder approach refers to the ability of the shareholder model to maximize utility, fiduciary obligations owed to shareholders to maximize profits might be subject to constraint of respecting obligations owed to such stakeholders. So what we are seeing over here is that amongst the stakeholders, the shareholder is the most important stakeholder and they are talking about the maximization of the utility of the corporation and fundamentally only following two responsibilities which is obeying the law and maximizing shareholder wealth. So the theory represents a synthesis of economics, behavioral science, business ethics and stakeholder concept. Now when we are looking at this theory then what we see is that the stakeholder concept tends to override or overshadow the other disciplines and the other approaches and the shareholder tends to dominate the stakeholder theory with the element of maximization of profits and also following the different stipulated laws. And that tends to overshadow the other aspects and perspectives of corporate governance which can lead to what we call an input-output model by explicitly adding all the interest groups which include the employees on one hand, the customers on the other, the dealers, the government and society at large as a corporate mix. So these different stakeholders have their own interests within the organization but like I mentioned earlier the shareholder tends to dominate and overshadow all of them. And ladies and gentlemen the theory is grounded in many normative theoretical perspectives including the ethics of care, the ethics of fiduciary relationships, the social contract theory, the theory of property rights, the theory of stakeholders as investments, the humanitarian ethics and also the critical theory. The theory operates at a level of individual principles and norms which it provides little formal justification. So again despite the fact that there are so many elements and stakeholders but yet the domination of the shareholder tends to reflect and tends to emerge from this particular theory and therefore in the words of Clive Smallman the inclusion of a wide range of interested parties may be well intentioned. In practice if directors as agents attempt to serve too many principles they will fail to satisfy those who have a general claim on an organization not as wholly minded liberalism mainly because it is not applicable in practice by corporations. Furthermore in the assessment of Clive Smallman the stakeholder model also stands accused of opening up a path to corruption and chaos since it offers agents the opportunity to divert wealth away from shareholders to others and so goes against the fiduciary obligations owed to shareholders. So ladies and gentlemen boys and girls what we are seeing is that this theory tends to instigate and promote corruption because it is inclined towards the shareholder is not taking into consideration the other stakeholders from a contextual part and then what it tends to actually tends to propagate and tends to promote is that wealth is taken away and so goes the fiduciary obligations owed to the shareholder. So this basically basically creates a paradox and therefore becomes a little bit complex and complicated in the corporate governance framework. Thank you so much.