Shareholders theory is concerned with increased profits for
shareholders . Stakeholder Theory is
concerned with any stakeholders, group or individual who benefits or are harmed
by corporate actions they do not own stock in the company. Stockholders may be the largest stakeholder
because they are directly affected by the company’s performance. Milton Friedman believed executives act in a
morally responsible way to seek maximized profits. Free man thought this overemphasized
profits. He thought this was a moral
duty to stockholders. Freeman thought
managers have duties to numerous groups and individuals, the stakeholders.
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