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Should Companies Prioritize Shareholders or Stakeholders?

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Should a company's priorities lie in the best interest of the shareholders or in the best interest of the stakeholders?

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Solution Summary

This solution provides detailed information regarding whether a company should give priority to the shareholders or the stakeholders. A detailed description of preference rationale is provided along with complimentary references to support the answer.

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The priorities of a company should seek to mutually benefit all individuals, which include both the shareholders and the stakeholders. Ideally, an organization, which is publically owned, or doesn't limit membership to a few individuals, should strive to serve clients, investors, the general public, and the ownership team.

Let's consider some of the world's leading organizations... CNN Money (2013) has provided a list of the top Fortune 500 organizations. The top four organizations recognized by CNN money include: the Wal-Mart Stores, Exxon Mobil, Chevron, and Phillips 66. Each of these organizations are publically ...

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