Wednesday, January 18, 2012
Stockholders
For whose benefit and whose expense should the firm be managed? I agree with managerial capitalism, where management vigously pursuses the interest of the stockholders. I think that a corporation has no business doing anything but maximizing profit with someone else's money. Witch is what they are spending. That would be the only way to do business if your business is not as profitable as another, stockholders will just go to another corporation with their investments thus causing the business to fail. Unless on the other hand that the stockholder is not only interested in the profit made but also the betterment of the community. But i think that most people when not put on the spot would lean towards a more profitable company.
Subscribe to:
Post Comments (Atom)
I agree that people lean more towards making a large profit and not worry about anything else. This is why I think we as a society are in trouble because everyone is worried about making money and not about what is really going on in the world or the people in it.
ReplyDeleteI think you are right when you say that stockholders will just go elsewhere with their money and it will cause the company to fail. It's great that we have have people willing to invest their money into companies but I just think that they need to treat the workers and costumers better. That would be a huge step.
ReplyDelete