Stakeholders vs Shareholders

Topics: Stock market, Profit, Stock Pages: 1 (308 words) Published: December 9, 2014
Basically this discussion gave us some information about the different forms of business, stakeholders and shareholders. They informed us that which one’s are more beneficial. Shareholders are basically the owners of the business or a company and shareholders are the ones who works for a business like managers. Hayne Leland and David Vogel were on the side of shareholders and Earnest dalbo and Rich Lyons were on the side of stakeholders. They had an argument about which parties are more important and why one party should placed into consideration more that the other party. Mr.Leland was on the side of shareholders and was saying that maximizing shareholder’s value becomes more important than achieving goals and growth. He said that maximizing the stock value will minimize the cost of raising the capital and it will result in a greater growth. However, the stakeholder’s point of view was that managers managers using other people’s money to reach their goals. They are kind of disagree with a managers who are taking risks to pursuit their personal values. I my opinion both parties mage good points and in order to maximize profits, there should be a mixture of shareholders and stakeholders.Shareholders believe that an organizations success can be measured by things a s share price, economic profit and taking risks and I’m agree with this. Their value is profitability over responsibility and they see organizations as an instrument to reach their goals. On the other hand, stakeholders’ value is responsibility over profitability and they see organizations as conditions to serve all parties involved. They believe that organizations success should be measured by satisfaction among all stakeholders and shareholders. They also believe in social responsibility. In the end, I believe in both parties and I think both parties are right and both should take into consideration.
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