Abstract:
The increase in banking regulation globally is a rising trend and is demanding more
time and attention from senior management. The aim of the case study is to analyse
and asses the effects of banking sector regulations and corporate governance on the
prioritisation of stakeholders by senior management.
The role of senior management is to enter into contracts with the owners of the
company to act as agents for the organisation. It is then the responsibility of
management to establish contracts with various other stakeholders of the organisation.
The responsibility of bank management is becoming more complex and senior
management have the unenviable task of identifying and prioritising stakeholders
based on how they perceive stakeholder salience as described in stakeholder theory.
The research attempts to prove that managerial perception of stakeholder salience is
affected by the regulatory institutions and the legislation, statutes and regulations that
they enact, both internationally and locally. It is therefore critical for management to be
aware of rate of change and frequency change in the regulatory environment to
ascertain its ongoing effects on stakeholder salience to an organisation.
The case study is specifically focussed towards the banking industry, but aims to
contribute to understanding the effects of regulation on managerial perception on
stakeholder salience which could be accepted in other highly regulated industries.
