How do corporate managers balance the interests of society and shareholders?

Expert Solution

Corporate managers will be balancing the interest of society as well as share holders by trying to engage into a practice which is called as value maximization of the company and they will be trying to incorporate various practices which will be protecting the interest of the society by undertaking various and environmental project and they will be trying to increase the Social awareness and provide employment in the society at a large scale so they will be trying to protect the interest of the society and when the society will be trying to help the business by growing its demand and maximizing its sales then the value of the shareholders will be maximized because there will be higher value for the company and business will be sustainable in the long run so this is a common practice of value maximization through which business will be undertaking various kinds of social work in order to maximize the value of business in long run which will maximize the value of shareholder as well.

Hence it can be summarised that value maximization will be helping the manager in order to synchronise the goals of society and shareholder at one place because when the society will be growing the demand will be growing for the business and it will lead to maximization of the value for shareholders.

jeff jeffy answered 1 year ago

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