Maximizing Shareholder Value Is The Sole Responsibility Of Corporate Management
Discuss the pros and cons of this statement with the help of information from multiple sources. What is your opinion?
The pros of having Corporate Management as the sole responsibility of maximizing shareholder values is the ability to have more control on how stuff are ran. The main goal of the shareholders values are easily obtain as only limited amount of people are dealing with this responsibility. With a smaller group allows for less complication and disagreements. Thus allows for greater returns in the shareholders pocket which equals to maximizing wealth. If the shareholder get more profit and wealth this would lead to keeping corporate management with less guidance. Rather than if the Shareholders weren’t maximizing profit this could lead to wanting replacements and more regulation. Another pro of leaving the responsibility to corporate monument would be a strategic goal. Everyone has a primary purpose of maximizing profit and this would lead to completing objectives which allows for happy shareholders.
The cons of having corporate management as the sole responsibility of maximizing shareholder values would be bad business practices. With following this procedure the consumer aren’t taken into account. The economic responsibility isn’t taken into account. The goals are strictly for profit which leads to long term problems, there is no one worrying about what would happen in the…