Reference no: EM131888239
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 are most affected by its actions-namely, the employees, suppliers, creditors, and customers.
For this week's discussion, consider your perspective on this debate. Do you believe that the goal of the firm should be to maximize the wealth of its shareholders?
Or, should the goal of the firm take into consideration the other social elements (e.g., the environment, the welfare of the community, and so forth)?
As you prepare your response, begin by identifying the significant differences between a corporation and all other types of firms.
Be sure also to address strategies that are available to shareholders to ensure that management is motivated to act in the best interest of the firm.
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