Maximizing Shareholder Wealth

Instructions:

This is a discussion board post. 200-300 words. APA format. Use as many sources as needed. Textbook login given. Chapters 1 & 12 only please. Please read the prompt below and respond accordingly.

This module has developed the idea that the goal of the financial manager is to maximize shareholder wealth – in other words, make decisions which will result in the maximization of the firm’s stock price. However, one of the four pillars of your MBA program is that Virginia Wesleyan “… takes pride in offering a course of study which embraces and promotes ethical business practices in such areas as human rights, labor, the environment, and anti-corruption.”  Are these two perspectives compatible?

How you would address this issue largely depends on your view of business. Is business a zero-sum game like poker where the gains of the winners come at the expense of the losers? Or is business more of a win-win situation whereby a firm can do well and its share price be high while also providing opportunities for others (e.g. customers, employees, suppliers, the community etc.) to also do well along with the company’s success?

Identify and support your position on this issue.

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