I think, The company is not only property of the shareholders but also of the society as well... if the company is assumed to be property of shareholdes then the company might go for some actions (which are not good for society) to maximize the shareholders wealth...

But I need some legal reference to support it... and if I'm wrong then I need some proof that I'm wrong...

I wish you people will help me by providing lots of information regarding this subject... or by sharing our opinion with me...

I would be very thankful

Shafayet

Well I disagree with your premise. While a company may be responsible for acting ethically and adhering to the laws where they do business, they are owned by their stockholders and their first responsibilities is to those stockholders.

[QUOTE=shafayeth]I think, The company is not only property of the shareholders but also of the society as well... if the company is assumed to be property of shareholdes then the company might go for some actions (which are not good for society) to maximize the shareholders wealth...

But I need some legal reference to support it... and if I'm wrong then I need some proof that I'm wrong...

I wish you people will help me by providing lots of information regarding this subject... or by sharing our opinion with me...



If you want legal references as opposed to personal opinions you're going to have to actually pick up a book or two -

I think someone else from your study group already posted this - earlier today.

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Originally Posted by ScottGem

Well I disagree with your premise. While a company may be responsible for acting ethically and adhering to the laws where they do business, they are owned by their stockholders and their first responsibilities is to those stockholders.

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But my point is if the companies goal is to maximaize the shareholders wealth then they might think to go for unethical activity where as, if the company is seen as the property of the society then they won't have any intention to make money by deterioting society... it won't be fair in my point of view.

You assume a company will maximize shareholder wealth at the expense of the public. Obviously that has happened but its not a given. Most companies stay within the law and work at maximizing shareholder wealth within the confines of legal and ethical boundaries.