CHECK THESE SAMPLES OF The primary responsibility of Businesses is to increase the profit of their shareholders
It is mainly based on the viewpoint articulated by Friedman that the main social responsibility of a business is to effectively use its resources and employ those activities which increase the profits of the business as long as it engages in free and open competition without any deceptive and fraudulent activities (The Guardian, 2009).... Although most of the neoliberal advocates agree that Corporate Social Responsibility hinders the achievement of the primary purpose of the business, they agree that it will be profitable for the companies in the long run if they adopt Corporate Social Responsibility in their policies (Jedrzei, 2007, pp....
12 Pages
(3000 words)
Literature review
The following paper is a critical debate on the question: Should the primary objective of management be to increase the wealth of shareholders and owners?... the primary objective of any business management should be focused upon customer satisfaction.... This will provide the avenues required for profits that generate wealth of shareholders and owners.... increasing the wealth of owners and shareholders.... This view is related to the fact that most shareholders invest in the company on the understanding that the management will steer the company on the strategy of generating profits for them....
12 Pages
(3000 words)
Essay
The current application of the shareholder theory is based on the Chicago School of Economics which highlighted the fact that the primary purpose of corporations is to maximize the wealth of shareholders; this theory also argues and that resolving social issues are state functions, not corporate functions4.... The shareholder value principle requires for a corporation to be managed in ways which support the shareholders over and above other parties having claims on the company....
16 Pages
(4000 words)
Essay
Using secondary research to find answers, the opposing views of seven groups - historical figures, Nobel Prize winners, management thinkers, academics in finance and economics, business practitioners, media, and philosophers - were sampled and matched to determine whether the worth of a business activity is limited by its contribution to profit generation and the maximisation of shareholder value....
25 Pages
(6250 words)
Coursework
He maintains that the responsibility of a corporate executive who is employed by the owners of the business is to run the business profitably in accordance with the law.... The objective of any corporation is to legally maximize the returns on investment so that its shareholders primarily can benefit.... This essay aims to analyze the recent trend, in which many people, organizations and groups are of the belief that businesses have some social responsibility towards all its stakeholders, which consists of not only its employees, but also the customers and the environment....
3 Pages
(750 words)
Essay
For example, if a business had a net worth or shareholder's equity of $200 million dollars and made a profit of $20 million dollars, the earnings from returns on equity would be 10% (see Omran et al, 2002).... This essay would highlight the fact that it is a business and company's primary responsibility to increase profits and improve shareholder financial returns and wealth maximization to maintain the trust of shareholders and investors in the market although there are many factors and controversies involved as will be discussed....
7 Pages
(1750 words)
Article
This paper sought to establish the extent to which CSR affects the shareholders' value.... Other than serving just shareholders, managers have integrated other stakeholders through social and environmental concerns.... hellip; According to the findings, it can, therefore, be said that in the contemporary business arena, companies in need of surviving cannot afford to ignore the concept of Corporate Social responsibility.... The third objection is that the engagement in social activities dilutes the business's primary purpose....
10 Pages
(2500 words)
Research Paper
This work "Business, Ethics, and Society" describes the primary responsibility of Businesses to increase the profit of their shareholders.... hellip; Zain (2008) gave a comparison of the divergent views of Milton Friedman and Archie Carroll concerning the responsibility of business in society.... Friedman believes that the main responsibility of a business is to maximize the profits of the shareholders and the interest of the shareholders should be the many areas of concern in any business industry (Zain, 2008)....
10 Pages
(2500 words)
Essay