Should Managers Only Pursue The Interests Of Shareholders Case Study
Because of the unique position of shareholders as the owners of the company, satisfying shareholder claims typically receives the greatest attention in many corporate mission statements. However, should managers only pursue the interests of shareholders, while ignoring the claims of other stakeholders. Discuss.
No a manager should not only pursue the interests of shareholders because it is important for managers to both pursue the interests of shareholders and all other stakeholders. Although shareholders play a vital part in the company they are not the only element needed for the company to succeed. A stakeholder is someone involved in or affected by a company’s activities. Internal stakeholders are the employees, managers and owners. External …show more content…
Without customers the business would go nowhere. By taking in the needs, likes and dislikes of customers the manager can help the company grow into a well-known company that is liked and needed in today’s society. Customers play an important role in whether a company succeeds or fails. Customers want good quality products for a reasonable price. This is where a manager would need to take into consideration the interests of customers and not just shareholders interests. If a customer is not happy with the way the things are run within the company they will take their business elsewhere and the company will risk getting a bad …show more content…
Suppliers are the people who provide the company with the raw materials needed for their products or services. Without the supply of raw materials, packaging, insurance, fuel and delivery services a lot of companies would be unable to give into the demands of their customers. A manager would be very wise to take the claims of suppliers on board as a company heavily relies on the use of its supplier. Not only do suppliers provide the raw materials for a company but a company may also see out the use of transport companies and advertising agencies.
Even though managers have a tendency to give the shareholder primary focus from the above information it is obvious that they cannot do that if they want the business to succeed. In order to run a successful business a manager will have to take all the stakeholders claims into consideration because a company is not run by the interests of one group. A manager should never ignore the claims made by other stakeholders as it will do more damage to the business than it will
No a manager should not only pursue the interests of shareholders because it is important for managers to both pursue the interests of shareholders and all other stakeholders. Although shareholders play a vital part in the company they are not the only element needed for the company to succeed. A stakeholder is someone involved in or affected by a company’s activities. Internal stakeholders are the employees, managers and owners. External …show more content…
Without customers the business would go nowhere. By taking in the needs, likes and dislikes of customers the manager can help the company grow into a well-known company that is liked and needed in today’s society. Customers play an important role in whether a company succeeds or fails. Customers want good quality products for a reasonable price. This is where a manager would need to take into consideration the interests of customers and not just shareholders interests. If a customer is not happy with the way the things are run within the company they will take their business elsewhere and the company will risk getting a bad …show more content…
Suppliers are the people who provide the company with the raw materials needed for their products or services. Without the supply of raw materials, packaging, insurance, fuel and delivery services a lot of companies would be unable to give into the demands of their customers. A manager would be very wise to take the claims of suppliers on board as a company heavily relies on the use of its supplier. Not only do suppliers provide the raw materials for a company but a company may also see out the use of transport companies and advertising agencies.
Even though managers have a tendency to give the shareholder primary focus from the above information it is obvious that they cannot do that if they want the business to succeed. In order to run a successful business a manager will have to take all the stakeholders claims into consideration because a company is not run by the interests of one group. A manager should never ignore the claims made by other stakeholders as it will do more damage to the business than it will