Maximization of Shareholder Wealth Assignment Example | Topics and Well Written Essays - 250 words

Maximization of Shareholder riches - Assignment ExampleThe ethical principles on the other hand are presented by most texts on business ethics to function independently and usually contrary to the fiscal objectives like maximizing the prise of common stock.This is evident in most corporations where there exists a tension between the ethical and the financial ideals. For instance, Halbert and Ingulli (1990) highlight the disparity between ethics and maximization of shareholder riches by the description of a study, which involved around two thousand MBA students. Beginning as relative idealists, they reported the desire of creating quality goods and services, to be able to serve the customers and at the same time give back to the local communities they belonged. By the graduation time, they were rather much oriented to maximizing the shareholders values. This disparity is also observed as the divergence of philosophies, which is there between any serious treatment of ethics and we alth maximizing. Maximization of shareholder wealth is strategies, which will ensure highest possible returns. This may even involve the strategies of laying off some of the establishments employees to achieve this. Some activities, which are good for the society, may compromise the strategy and may be ignored in this ferment. The customer and the environment may also not be considered in this process that much since the customer may not be completely comfortable with the