One of the most significant debates about corporate governance centers on whether the organization owes a greater responsibility to the shareholder who has invested in the company or to the stakeholders and those who can most be affected by its actions - namely the employees, suppliers, creditors, and customers.
1. What are some alternative goals for shareholder wealth maximization?
2. Identify countries with goals that differ from the U.S. or countries that are home to firms that have differing goals from those based in the U.S.
3. Compare and contrast the difference between stakeholder focus goals versus shareholder focus goals.
4. What are potential problems with both?
Solution discusses the alternative goals for shareholder wealth maximization