As a stakeholder strategy, do you agree this is the overriding strategic goal companies should adopt today versus a shareholder strategy?

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1.03K viewsApril 22, 2020Stakeholder

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My Assignments 539 April 22, 2020 0 Comments

Companies adopt either shareholder or stakeholder models to formulate their strategies. The Nobel Laureate Milton Friedman stated the overriding strategic goal of corporate officers should be “to make as much money for their shareholders as possible.” As a stakeholder strategy, do you agree this is the overriding strategic goal companies should adopt today versus a shareholder strategy? Explain why

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score 0 · Answer 1 · 2020-04-22T15:06:23+00:00

No, I don’t agree that the only goal of the cooperate officers is to make money for stockholders. Many things have changed after Milton propounded his ideas about stalk holders vs shareholders approach. The public considers the corporation as part of society. The customers are very well aware of the sustainability in the company’s operations. The customers avoid companies which work only to earn the profit. These companies are considered as unethical. The government wants companies to gain profit by keeping society and environment safety in the first place. So, it becomes essential for the companies to work for the stakeholders. Hence, according to today’s scenario, a company cannot progress with just focusing on shareholder strategy.