Western Washington University Western Washington University ------------------------------------------------------------------------- --------------------------------

Business and its Environment

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Discussion Questions for the Corporation as an Economic Institution:

1) It has oftentimes been claimed that the only objective of managers is to maximize shareholder wealth. What justification can be provided for this point of view?

2) What is implied by shareholder wealth maximization? Specifically, what does this perspective 'mean' for the interests of other stakeholders?

3) What is a 'stakeholder,' and why should stakeholder interests be taken seriously?

4) How would you go about prioritizing the interests of stakeholders? With what justification would you establish these priorities?

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