This is my first blog and I am happy to know something new about blogging. The subject is International
Finance and Financial Management. My understanding of setting up a business is to maximising its
profit. However, from the lectures' notes has appeared that the business is actually run to maximising
the shareholders wealth. Handy (2002) in his article what's a business for, and from my experience in
the subject ( Corporate Contemporary Reporting) Showed that the companies' directors are working
towards their own interest and not for the shareholders interests. Directors nowadays are concerned
about their own wealth whereby increasing the overwhelming profit in a scene of showing that the
organisation is doing well.
One the other hand, shareholders are considered to be one of the stakeholders groups that has interest in
the business. Therefore, the business cannot maximise the shareholders wealth without taking into
account other stakeholders' interest such as employees, suppliers, customers, community and
government. however, the shareholders interest must be paramount.
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