Final answer:
Ming and Jie's implementation of a system to protect the interests of corporate owners and other stakeholders is an example of corporate governance, which involves processes and mechanisms to control and direct a corporation. This includes overseeing management decisions and balancing the interests of various stakeholders.
Step-by-step explanation:
Ming and Jie implement a system of governing their organization to ensure that the interests of both corporate owners (the shareholders) and other stakeholders are protected. This system is known as corporate governance. It refers to the set of mechanisms and processes by which a corporation is controlled and directed. Corporate governance encompasses a variety of practices including the roles and responsibilities of the board of directors, shareholder rights, and transparency procedures that enable an appropriate level of oversight over management decisions.
The goal of corporate governance is to balance the interests of the many stakeholders in a company, which can include shareholders, management, customers, suppliers, financiers, government, and the community. Systems of corporate governance seek to align the economic and social goals of a corporation, as well as prevent conflicts of interest between stakeholders and across different actors inside the corporation.
A key component of corporate governance is the board of directors, elected by the shareholders, which provides oversight and has the authority to make decisions on corporate affairs. Other mechanisms of corporate governance include financial reporting, internal controls, internal and external audits, and regulation adherence.