To What Extent Does a Company Exist Only For The Benefit Of Its Essay

To What Extent Does a Company Exist Only For The Benefit Of Its Shareholders - Essay ExampleThis look into will begin with the statement that the Occupy protests taking place around the world have highlighted a problem that lies at the heart of merged structures the single-minded pursuit of realize at the expense of everything else. Indeed, the system of logic of the market demands that players in it pursue maximum gain. A company, therefore, is expected to pursue maximum profits for its shareholders. wealthiness generation becomes a single and overarching focus. Experience has shown us however that this has sometimes led to unfortunate consequences. The single-mindedness with which profit is pursued has allowed companies to neglect other issues and concerns. It became of little surprise therefore that the recession that has hit much of atomic number 63 and America and the widely-reported corporate scandals have highlighted the need to make corporate governance at the top of a c ompanys order of priorities and the overriding principle guiding its directors. The escalating protests on Wall Street in the United States, for example, demonstrate growing public outrage against corporate greed and white-collared crimes. In simple terms, this base suggests that the company must exist only for the benefit of its shareholders only to the extent that it does not encourage corporate deviance and it retains its obligations to the rest of the society, not necessarily only its shareholders. This paper will begin by eldest discussing the Agency theory and its implications. Next, it will discuss the theory counterpoised to that, which is the Stakeholder theory highlighting corners and turns of the debate that theoretically underpins the question as to whether and to what extent a company should exist only for the benefit of the shareholders.