Balancing Act: Maximizing Shareholder Value vs. Serving Stakeholder Interests
In the ever-evolving landscape of business ethics and corporate responsibilities, a pivotal discussion emerges – Should companies solely focus on maximizing shareholder value, or should they navigate the often convoluted path of serving the diverse and occasionally conflicting interests of all stakeholders through corporate social responsibility? Maximizing Shareholder Value vs. Stakeholder Theory The crux of the debate lies between two predominant theories: one advocating for the primacy of shareholders' interests and the other, known as the Stakeholder Theory, advocating for a more inclusive approach that considers the interests of all entities affected by the company’s operations. The former prioritizes profit, often emphasizing short-term gains, whereas the stakeholder theory emphasizes a duty of care beyond just shareholders, recognizing the symbiotic relationship between businesses and societies. Personal Perspective: A Duty of Care Beyond Profit Drawing from my professional ...