Answer to Question #96800 in Macroeconomics for Emily

Question

Critically comment: Shareholders own companies. Therefore, companies should be run in their interests. When this is done, companies’ profits are maximized, which in turn maximized their social contributions.

Answer 1

The interests of shareholders and other stakeholders should be balanced to attain optimum profit for the organisation.Additionally,the organisation should live by its corporate social responsibility by sponsoring projects that builds trust in the society such as scholarship programs to the host community.Social contributions of all parties are relevant to the growth of the firm.