Saturday, August 10, 2019

There are many popularly suggested business objectives, while Essay

There are many popularly suggested business objectives, while academically the objective to maximise shareholder wealth is considered superior. Discuss. (In y - Essay Example Despite these claims, research suggests that maximizing shareholder wealth is considered superior to all objectives. Wal-Mart claims to hold down inflation in the US (Fishman, 2003), create jobs, and has customer-centered strategy as their prices are unbeatable, but they ultimately squeeze the vendors and under-pay the staff (Heyer, 2005) with the ultimate goal of maximizing shareholder wealth. They even have an efficient supply chain and source their products from developing countries and claim to be a part of their growth. Nevertheless, employee wages at Wal-Mart are as much as 31% lower than competitors (Nester, 2006). It pays practically no benefits and very often employees have to work overtime without any additional compensation. Wal-Mart ranked fourth in terms of social responsibility in terms of its dealings with its stakeholders but there were 4851 claims filed against it in the court (Papasolomou-Doukakis, Krambia-Kapardis & Katsioloudes, 2005). Corporate giants like the CEO of Coca-Cola too make tall claims that by being more efficient and more profitable, it makes businesses better for the community (Ash, 2004) but findings reveal otherwise. They have committed as many as 179 major Human Rights violations (Cairns, 2005). The union leader was shot dead at the Columbia bottling plant. Turkish and Indonesian workers face mass firings for their union activity. Multination Monitor, an American non–profit organization, listed coke amongst the worst ten companies in US. In India they are diverting potable water from local residents for the production of soft drinks. During the processing of soda pop in India, Coke has contaminated soil and underground water with toxic cadmium, which was found in the sludge. They have also been charged and found guilty of bribing the Pollution Control Board in South India. They are accused of inflating profits, selling contaminated beverages and violating contracts. Under the garb of commu nity

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