Register now or log in to join your professional community.
You can answer ,what you feel right according to the new era of Dubai expo2020 .
Appropriately said Mr. Nitin Gupta , its depend on the strategy of the company its mission and vision .But according to me , primarily in today's phase of globalization the corporates need to think of the wealth maximization of stakeholders , since to remain in the competition and to have more investors since its an open market and investors get lucrative offers from the counterparts in any specific industry . Hence, if one thinks of only profit of the company then somehow , I think it may decrease the value ratings as the market capitalization decreases , since the company then concentrate only to make its profit margin stronger and the P/E ratio or EPS might be in a downtrend and the CEO or CFO might get benefited , the investor then movebackward and look for other better option .
Company growth is beneficial to all parties involved, shareholders, co-founders and employees all benefit from it the same way.
What ever it may be... In both ways the shareholders are profitted.
The question arises as to how broad are the stakeholders. Here the key question is of corporate citizenship and Corporate goverance.
The answer simple depends upon the Mission and Values of the organisation and the strategy it adopts to pursue its objectives.
The profit of the company belongs to the shareholders / owners. The owner(s) through the management may decide to reward the workers with increment or bonus as a reward or incentive. The owner(s) may also decide not to reward the workers at all. Nevertheless, working hard and smart so that the company makes profit should be ingrained into all staffs.
It's a trade off that would depend on company strategy. There is so much to discuss about it.
It is the same thing. Company profit increase shareholder equity
