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.

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.

Principles of Management

OER 2019th Edition

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax

Chapter4: External And Internal Organizational Environments And Corporate Culture

Section4.5: Corporate Cultures

Problem 3CC: What are some organizational issues that must be addressed when two large firms merge or grow...

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