3 assignments

The main goal of almost all listed companies is to maximize shareholder value by creating as much profit as possible. However, many companies have begun to strike a balance between this primary goal and other social and environmental goals that help reassure stakeholders and help generate profits. Maximizing shareholder value in a public company is essentially equivalent to a sole proprietor whose goal is to earn as much income as possible. Shareholders are part of the owners of a listed company. They invest in the company and make money through stock price growth and/or dividends. Company leaders must generally satisfy shareholders’ desire for profit to maintain and increase stock prices and company value. The significance of corporate social responsibility is that shareholders are not the only stakeholders interested in the interests of listed companies. Customers want to buy from companies that are ethical and honest. The community wants to feel that the company cares about its source of income. Employees want to feel the importance the company attaches to them. Business partners want to cooperate with companies with similar ethical values and visions. The goals of these stakeholders usually share the concerns of the company’s board of directors and leaders with the interests of shareholders. If you do not care about these core stakeholders, long-term profits may be at risk. Although some listed companies have social and environmental commitments in their mission and corporate governance standards, their social goals are usually aligned with profit goals. The change is that companies generally recognize that the rebound from public and consumer watch organizations that fail to comply with informal social and environmental expectations may hurt profitability. Therefore, many listed companies regard to profit and social responsibility as mutually important goals.