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Shareholder Value and other Corporate Concerns

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Is shareholder value the only proper concern for corporate management? Should the interests of other stakeholders (employees, customers, community, etc.) be considered independently or only to the extent necessary to enhance the long-term interests of the shareholders?

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Solution Summary

The solution describes whether shareholder value is the only proper concern for corporate management.

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Corporations have done more to advance society in America and other parts of the world over the past 100 years than any other organizational type known. Ford revolutionized the way we travel, live, vacation, and play. Microsoft and Apple forever changed the way we live and work, learn, and play.

Most business schools teach students that the foremost concern of an organization is shareholder return. Since the accounting scandals of years past, ...

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