Episode 362: Shareholders and Stakeholders

Season 1 Episode 362

For whom does the corporation exist: investors, workers, customers, the community? Economists tend to answer, "investors." That's not to say that workers, customers, and the community aren't important, but rather that the corporation exists to further the interests of the investors. Where the interests of the workers, customers, and community coincide with those of investors, the corporation also cares about those groups. But where their interests conflict with those of investors, the interests of investors take precedence. That's the principle of "shareholder value." The principle of "stakeholder value" holds that the corporation should consider the interests of workers, consumers, and the community even when they conflict with the interests of the investors.

Foolishness of the Week: 08:15 Main episode: 12:29

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https://newschannel9.com/news/nation-world/scientists-discover-novel-way-to-destroy-cancer-cells

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https://www.axios.com/2024/01/11/florida-book-ban-schools-lawsuit

Topic of the Week https://youtu.be/O8RpyqauWOQ?si=bFkwzQNP_PTNbtFQ&t=5109

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