Is maximizing shareholder value the sole purpose of a publicly traded corporation?
It seems to be the generally held view that the answer is 'yes', and that it is unethical, not kosher, and bad form for a corporation to lose focus on its single reason of existence: Shareholder Value.
While I admit that nurturing shareholder value needs to be one of the goals of a publicly traded corporation, I'd like to argue that increasing shareholder value does not, by any means, need to be the only stated purpose of a public corporation. It does not have to be the primary goal, either.
Opinions on this?
It seems to be the generally held view that the answer is 'yes', and that it is unethical, not kosher, and bad form for a corporation to lose focus on its single reason of existence: Shareholder Value.
While I admit that nurturing shareholder value needs to be one of the goals of a publicly traded corporation, I'd like to argue that increasing shareholder value does not, by any means, need to be the only stated purpose of a public corporation. It does not have to be the primary goal, either.
Opinions on this?