Shareholder wealth maximization, business ethics and social responsibility

Poitras, Geoffrey (1994): Shareholder wealth maximization, business ethics and social responsibility. Published in: Journal of Business Ethics , Vol. 13, No. February (1994): pp. 125-134.

Abstract

The primary objective of this article is to develop a framework for analyzing the ethical foundations and implications of shareholder wealth maximization (SWM). Distinctions between SWM and the more widely examined construct of profit nfaximization are identified, the most significant being the central role played in SWM by the market mechanism for pricing the corporation's securities. It is argued that empirical tests concerned with evaluating the ethical implications of SWM will almost surely involve a joint hypothesis. A number of recent empirical studies aimed at testing hypotheses with explicit ethical content are reviewed.

• Item Type: MPRA Paper
• Language: English
• Keywords: Shareholder wealth maximization; Business Ethics; ESG
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility

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