It is generally assumed that all organizations exist for the same basic reasons and that this purpose is self-evident. However, there is extensive disagreement about what the current purposes of organisations are, and especially about what their purposes should be. Some people argue that it is the business of business to make money. In their view, firms are owned by shareholders and therefore should pursue shareholders’ interests. On the other hand, others believe that companies exist to serve the interests of multiple stakeholders. In their opinion, having a financial stake in a firm should not give shareholders a dominant position vis-à-vis other groups that also have an interest in what the organization does. Discuss in the context of the Shareholder Value versus the Stakeholder Values Perspective.

A shareholder can be stated as the individual or any firm that owns a specific part of the public…

Answered: It is generally assumed that all…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

Related questions

Question

It is generally assumed that all organizations exist for the same basic reasons and that this purpose is self-evident. However, there is extensive disagreement about what the current purposes of organisations are, and especially about what their purposes should be. Some people argue that it is the business of business to make money. In their view, firms are owned by shareholders and therefore should pursue shareholders’ interests. On the other hand, others believe that companies exist to serve the interests of multiple stakeholders. In their opinion, having a financial stake in a firm should not give shareholders a dominant position vis-à-vis other groups that also have an interest in what the organization does. Discuss in the context of the Shareholder Value versus the Stakeholder Values Perspective.

Expert Solution