Management - Critical Management in Global Context

Running head: MANAGEMENT
Critical management in global context
Name of the student:
Name of the university:
Author note:

1
MANAGEMENT
Introduction
Stakeholders and shareholders occupy important position in a business. The personnel
intend to generate value for the shareholders through maximizing the investment returns.
Corporate governance is followed in this process for implementing the maximization options
according to the requirements. The aim of this segment is to assess maximizing shareholder
value as an integral component of the corporate governance.
Discussion
3. Discuss the consequences of maximizing shareholder value and critique whether this
should be the dominant principle of corporate governance?
Shareholder value creation is one of an important component of the corporate
governance. This value creation occupies the central position in the business operations. The
important parameters of value creation are revenue, suppliers and manufacturers, taxes,
interest expenses and net income (Chen and Feldman 2018). Standardizing the quality of
these aspects generates inclusive practices, which enhances the cultural diversity. Along with
this, the approach enhances the stability in the relation with the clients and customers.
Economic profit is one of the main sources of maximizing shareholder returns. However,
Patterson et al. (2018) is of the view that ensuring the wellbeing of the customers through the
provision of quality products and services is effective in terms of maintaining the market
position in the competitive ambience. Identifying the metrics is one of the ways in which
value creation can be fulfilled. Within this, Stanley and Wasilewski (2017) mentions about
earnings per share, which is an integral component and process of governing the process of
value creation.
Conclusion
Maximizing shareholder returns enhance the brand loyalty, as the clients and the
customers get more options for exercising the purchasing decisions and power. This process