Reference no: EM132855255

Discussion: The Goal Debate (Response)

Getting Started

• Since the 1970s, the assertion the ultimate purpose of any publicly held corporation is to maximize shareholder wealth has come under increasing fire. Many companies and their executives still hold to this tenet, and it is still taught as a guiding principle in major business schools around the world. However, alternative views are gaining acceptability in both professional and scholarly circles. In fact, some scholars have gone so far as to suggest there really isn't a conflict between social and financial goals at all. Research continues to emerge supporting the idea that the pursuit of so-called "socially responsible behavior" may not only be morally good but also financially advantageous.

Upon successful completion of this discussion, you will be able to:

Discussion 1: Evaluate the ethical and financial implications of governance and agency problems.

Discussion 2: Analyze the appropriateness of various alternative primary goals for public corporations.