Maximizing shareholder returns usually implies that the firm must also satisfy customers, employees, suppliers, creditors and other stakeholders. First, rank stakeholders as to expected risk and return and then rank stakeholders as to their importance to the organization’s success. Explain your ranking differences and/or similarities
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Rank Stakeholders as to expected risk and return:
When a company goes under or earning goes down, their stock price
will decrease before anything else could happen. Therefore, stakeholder
holds the highest risk but also the highest return.
Maximizing shareholders’ wealth is among the key
objectives of corporate governance in various organizations The primary
responsibility of attaining the goals of corporate governance is mandated to
the management of a given organization The management of the organization is
mostly posed of the managers who provide financial stewardship to shareholders’
wealth and the Board of Directors who foresee all the activities of the
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Sep 4th, 2015
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