Shareholders or Stockholders

A detailed Summary of Shareholders or Stockholders


It is clearly wrong for corporations to set their priorities or objectives on one specific group. A corporation owes an allegiance to all agents under its' structure. The classic concept of primarily serving the shareholders is morally wrong because shareholders wealth is not the only thing that should be considered.

To clearly evaluate this argument we must first understand the structure in which most major corporations operate. At the top level there are the board of directors who report to the Chief Executive Officer, (CEO). It is the board of directors who oversee the whole entity. These individuals set the tone and policies, whether the policies are positive or negative. Their effectiveness is dependant on whether their communication channels are efficient with the layer below them. The layer below them is management. Management reports to board members on criti


cal stats such as, financial conditions, successes and failures. Management role is to strive for long-term benefit of the whole corporation as well as short-term results.

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If we understand this structure it is clear that the primary stakeholder is the employee of the corporation. Without their talents and creativity there would not be a corporation. This core group deserves the respect and consideration in the decisions taken by board members and management. This core group must also realize that they have an obligation to the shareholders and that they should strive to provide as good a return as possible. Their main interest lies in the long-term goals for the corporation. Corporations who neglect to view this core group as a critical piece of the structure and only view them as profit at the expens

Some common words found in the essay are:
Officer CEO, , long-term goals, below management, final product, understand structure, board directors, daily tasks, layer below,

Approximate Word count = 600
Approximate Pages = 2 (250 words per page double spaced)

Category: Miscellaneous

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