Why management may tend to pursue goals

Reference no: EM131340217

1. It has been argued that shareholder wealth maximization is not a realistic normative goal for the firm, given the social responsibility activities that the firm is "expected" to engage in (such as contributing to the arts, education, etc.). Explain why these social responsibility activities are not necessarily inconsistent with shareholder wealth maximization.

2. Explain why management may tend to pursue goals other than shareholder wealth maximization.

Reference no: EM131340217

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