Hebrews And Its Impact On The World Essay - 1362 Words

Life as it is has really greatly regressed since the age of the Biblical times, until one would wonder if the Word of God still has root in the life of man in this current generation. This essay aims to answer the question, â€Å"What is the major theme of Hebrews and does it apply to the individual Christian today?† While looking keenly into the Book of Hebrews, this essay will highlight the major theme of the epistle, and bring into perspective the practicality of the Word of God in the life a Christian today. It will breakdown to detail who a modern-day Christian is, what his life principles are, and lastly, if the theme of Hebrews is applicable with his life today. The Book of Hebrews is one of the most significant books in the whole New Testament. It boasts of the purest form of Greek in linguistic nature, and not just that, but also its formation and delivery of its logical arguments are some of the most well-thought-out and well coordinate of all literature. The epistle, however, has taken centre stage in unending confrontations, and even sometimes violent debates over generations in regards to who the author of this incredible Book might be. Biblical scholars, having studied the Bible in great depths, seem not to agree on who is responsible. Unfortunately for them, the Book itself does not give any reference or indication to its mysterious writer. Some scholars suggest that Apollos is the writer of this Book given his background credentials, but a majority believe thatShow MoreRelatedHebrews And Its Impact On The World Essay2041 Words   |  9 Pagesâ€Å"What is the major theme of Hebrews and does it apply to the individual Christian tod ay?† While looking keenly into the Book of Hebrews, this essay will highlight the major theme of the epistle, and bring into perspective the practicality of the Word of God in the life a Christian today. Lastly, It will breakdown to detail who a modern-day Christian is, what his life principles are, and lastly if the theme of Hebrews is applicable with his life today. The Book of Hebrews is one of the most significantRead MoreThe Impact of the Egyptian and the Hebrew Civilizations on Humanity1459 Words   |  6 PagesIntroduction Throughout history, great civilizations have existed in various parts of the world. The cultural, economic, political, and/or intellectual achievements of these civilizations contributed to the advancement of humankind. Civilization is a term that has various meanings. Most popularly and in this context it can be referred to as an advanced state of human society, in HYPERLINK http://dictionary.reference.com/browse/which which  a high level of HYPERLINK http://dictionary.referenceRead MoreThe Impact Of Religion On Human Culture1200 Words   |  5 PagesFor centuries, human culture has been influenced in a multitude of ways by many means but none have had such an impact as religion. It has had countless wars waged in its name, even to this day. Billions believe in some divine being(s) that transcends the ugliness of humanity that s omnipotent and omniscient. Religion became a guide and a representation of how our lives should be led. However, history has brought evidence that made it possible for this notion to be criticized and rather, flippedRead MoreCivilization is Connected from the Mesopotamians to the Powerful Roman Empire836 Words   |  4 Pagesachievements. The Assyrians left a las ting impact on civilization with the advent of the idea of conquest which they took to ruthlessly brutal ends. Later the Persians would add a degree of tolerance into the conquest equation. The concept of conquest would leave an indelible mark on the West, for better or worse. These developments still play a role in contemporary society. Much of the religious practice of the ancient world was polytheistic. The Hebrews embrace of monotheism is noteworthy, becauseRead MoreThe Cultural World of Jewish Women Explained in Daughters of Tradition by Alicia Ramos-Gonzà ¡lez1806 Words   |  7 PagesTradition discuss, in great detail, the cultural world of Jewish women in Eastern Europe during the 16th-19th century. I believe that culture takes root in ones’ identity not only as an individual, but also in ones’ identity with their people and nation. Based on this belief, I have chosen to focus my explorations on the patterns found in the bases of Jewish identity among the women in Yiddish culture during this time. Despite the negative impacts towards gender equality which arose though preventingRead MoreGilgamesh Flood Comparison Essay823 Words   |  4 PagesComparison and Contrast of Hebrew and Mesopotamian Flood Stories Both the story of â€Å"Noah and the Flood† in the book of Genesis in The Hebrew Bible and the flood story in The Epic of Gilgamesh detail a grand flood in which a man saved life from extinction by building an ark, earning fame and immortality in some form. The theme of completing this grand task for a moral purpose holds true to both stories, but the depiction and actions of the divine and mortal characters in the stories contain differentRead More Apostle Paul Essay1212 Words   |  5 Pagescharacter, Jesus Christ influenced history. Jesus Christ was crucified, died, and resurrected, which changed world history as we know it. He told his disciples He would die and on the third day he would be resurrected. Jesus died to pay the sin debt of the world. The Lord led a sinless life, but was the one who took on the sins of the world. There is no other person who has had as much of an impact in history as Jesus Christ. The apostle Paul, who once rejected Jesus Christ, later became one of theRead MoreDeath, Mortality, And The Afterlife938 Words   |  4 Pagesand have been modified according to their own views depending in what region they were born in and the time period. To look at what has changed over the periods we have to look at our history starting with writings like the Epic of Gilgamesh, the Hebrew texture, the Bible and many more stories both historical and religious. All trying to answer the same questions regarding death, mortality and the afterlife. There are 5 immortality narratives that define the human process staying alive, resurrectionRead More Genesis And Theogony... Plagiarism? Essay1483 Words   |  6 PagesGenesis only serves to further an important idea among the Hebrews: there is but one God, and He is omnipotent, omniscient, and other-worldly; He is not of this world, but outside it, apart from it. The idea of a monotheistic religion is first evinced in recorded history with Judaism, and it is vital to see that instead of being an example of plagiarism, the Book of Genesis is a meticulously composed document that will set apart the Hebrew God from the others before, and after. If we trace backRead MoreThe Magna Carte, The Declaration Of Independence, And But The Communist Manifesto1534 Words   |  7 Pages Throughout out the history of the world many documents have had profound influences upon humanity. The Magna Carte, The Declaration of Independence, and even the Communist Manifesto by Karl Marx are examples of some of the documents that have helped to shape humanity. The Bible has had perhaps more impact on humanity than any other Document ever written. Many people read the Bible, but know little of the history of the Bible itself. The history of the Bible is a fascinating story of

Why Don t They Get It Essay - 1083 Words

When anyone thinks about their job we each have a list of people that we simply to not get and don’t like to deal with. In the end whether we like to acknowledge it or not we feel a negative disposition and even enmity for certain people. People are different and as much as we like everyone to be like ourselves that is not the case but the likelihood that we each have similar fears about hurting people and miscommunication.We are constantly communication with each other especially in the workplace with bosses, employees and co-workers. It does not matter how well you know the person communication can be difficult. Many time the words â€Å"How does his tone sound in the e-mail?†, â€Å"Did they really mean to say that?† or â€Å"Why don’t they get it?† and much more. One of the biggest roots of communication issues is our culture. Our culture is how we view and try to decipher any problems in our lives and how we speak to people and communicate with those around us. The first intercultural communication issue that I have in my workplace is a co-worker and myself have a very large communication gap. His English is not that well and it causes major communication issues. For example, we recently went on a delivery to a new client and he wanted to bring the items on a â€Å"borrowed† shopping cart. I tried to explain to him that it is a new client and it is not a good look for us. But instead he chose to go his route and ignored me which made me very frustrated. The second interculturalShow MoreRelatedWhy You Don t Get An A1044 Words   |  5 Pagesâ€Å"You don’t get an A, you earn an A.† says every teacher that I have ever had. It has come to my attention that they speak the truth. You put in the hard work and receive the grade with whatever your effort results in. How to earn the A can be exaggerated. In Newport’s book on How to Become a Straight A Student, Part 1: Study Basics†, the audience is guided throughout the text to analyze their study skills and impart strategies for time management and procrastination. The stories of studying for excessiveRead MoreWhy Don t They Just Get Another Job?2040 Words   |  9 Pagesand their family, but no matter how hard they tried they could not get to this point. Before this movie, I just assumed that these types of people simply did not work hard enough in life and that is the reason they were not successful at least stable within a home. In reality, these people are h arder workers than a lot of the people I know. Constantly during the film I just kept thinking, â€Å"Why don t they just get another job?† or â€Å"Why not apply for public assistance?†. Eventually, I would rememberRead MoreCommentary On Heads Up ! Heads Down !834 Words   |  4 Pagesanother one Oh! Yeek yeek woop woop! why you all in my ear?! Talking a whole bunch of shit That I ain t trying to hear! Get back motherfucker! You don t know me like that! (Get back motherfucker! You don t know me like that!) Yeek yeek woop woop! I ain t playing around! Make one false move I ll take ya down Get back motherfucker! You don t know me like that! (Get back motherfucker! You don t know me like that!) Who!! S-s-so c mon c mon Don t, get swung on, swung on It s the knick knackRead MoreWhy I Don t Take The Leap Of Faith Essay1454 Words   |  6 PagesIt s amazing how many people know what they want or know what they don t want and yet they don t do anything about it. Have you ever been in a conversation with someone telling you about the late in which they hate their job and how they would love to start a business instead? Yet at the end of the conversation you ask them what are you waiting for and they look at you with a blank face looking at you as if your nuts. The problem is that we want something but then we tell ourselves of all theRead MoreI Am Planning On Buying The Xulu Panelbeaters1630 Words   |  7 Pagesmean you love each other? - Melusi, I didn t plan any of this. Ever since I came back you call me Melusi and not Baba, because you love him! - We didn t know you d come back. - I m not talking to you! Look, we didn t do this on purpose. We spent a lot of time together after the case... I m talking to my wife! After the case? Zulu, you ve been making a fool of me. I took you in, and you made a move on my wife in my house! #10; It wasn t like that! You took advantage of my confusionRead MoreDon t Be Shy, I Won t Bite !897 Words   |  4 Pagesassumptions. He is starting to have feelings for her, even if he don t want to admit it to himself. Evelyn could sense John contemplating with his choices. She smiled brightly and spoken in a cheerful voice. Don t think too hard Johnny, why don t you sit closer by me? I ll gladly share you my blanket, besides I think you need it more than I do. Evelyn pat the ground, directing him to come closer. Oh come on...don t be shy, I won t bite! John move closer beside Evelyn. She open her blanketRead MoreReasons Why Americans Should Attend College1333 Words   |  6 PagesReasons Why Americans Should Attend College The most important reason why americans should go to college is that it prepares them to function in this increasingly complex world. Going to college also helps you get skills and help you understand and get better knowledge of things. Having a higher level of education allows you to have more open doors to better jobs and better pay. Including having your own business. Educated people are most likely to succeed. Kids don t have the luxury of attendingRead MoreMy Life Is A Mess1344 Words   |  6 PagesMy life is a mess because of one stupid secret. A secret that changed my life. A secret that shouldn t have been a secret in the first place. Have you ever heard the saying if you love someone then let them go? Well what I m thinking is if I love someone then I have to tell them the truth. Yeah, that should be a quote one day. If you love someone tell them the truth. Well, I didn t really listen to my own quote. My life got better within time. Then I ruined it. All because of some stupid secretRead MoreThe Boy - Original Writing1667 Words   |  7 Pages  Once upon a time, there was this boy, now this boy was a strange boy he never talked to anyone he didn t have any friends, and no one knew his name. Some boys at his school would come up to him and say hi or would try to ask for his name but this strange boy would just tell them to go anyway, the boy didn t seem to have a problem with having no friends, but then when this boy grew older and got in high school he meet this girl,Her name was Evangeline. Evangeline was the prettiest girl in schoolRead MoreThe Problem With Medical Insurance1209 Words   |  5 Pagesproblems include issues within insurance companies, lack of sanitation and medical service causing various countries with more diseases than normal. Immigrants come to the United States because they need better medical services that t hey are unable to get in their country. With the lack of healthcare materials and sanitation in countries outside of the United States, it makes many people choose to live here. An ongoing problem with medical insurance leaves people with no insurance at all. I chose to

Grass by Carl Sandburg free essay sample

Many a times one has heard the phrase â€Å"history will repeat itself†. However, it is rarely fully understood. No matter how many times one hears the numbers, facts, statistics of war, humanity fails to end the cycle. In the poem, â€Å"Grass† by Carl Sandburg, Sandburg utilizes repetition and a powerful theme to pose an especially striking stance on war. Consider first the repetition of the words â€Å"pile† and â€Å"shovel† and the way in which they are repeated. Normally, especially in a short poem like this one, one would want to avoid repetition in order to ensure that the poem stays interesting. Sandburg chooses to depart from that rule of thumb. â€Å"Pile† and â€Å"Shovel† occur in lines 1 and 2 respectively, so when they recur later they are already familiar. The repetition of â€Å"pile† at Lines 4 and 5 is within the same phrase so that surrounding words are identical and the word occurs visually in exactly the same place in each line. In doing so, Sandburg conveys a sense of the magnitude of death in war – not only in terms of the numbers who died in each war, but also how war reoccurs time and again. Additionally, â€Å"pile† stands out more prominently than â€Å"shovel†. So even though we know that the cycle of piling and shoveling is going to go on, the piles seem to build up faster than humanity can shovel. The repetition has an additional effect: Sandburg has written in free verse with no rhyme scheme. And yet, just looking at the poem on the page, one can visualize that there is some of frame which keeps it all together. The frame is that of repeated pile/shovel phrases and placement in each line. Moreover, Sandburg’s theme is that grass is ultimately more powerful than battles and it is revealed in a rather astonishing way. When one initially glances at the poem, they are led to believe that they will simply be reading a poem about, as the title indicates, Grass. front the reader thinks they are about to settle in to a poem about Grass (which they are) only to encounter the opening words â€Å"Pile the bodies high†. In the third line you find that the speaker is the grass. The grass wants to be allowed to work. Only in the closing four lines does Sandburg uncover his theme -given time no one will recognize this as a battleground anymore. The grass hides everything away, covers all the atrocities. When the grass gets the closing strophe all to itself Sandburg no longer needs the â€Å"I cover all†. The simple statement â€Å"I am the grass, Let me work† says enough. And note how each of those get their own line? A short punchy line, the first an â€Å"I am† statement almost biblical in its construction and brevity. The statements about the grass are also worth contrasting with those repeated pile and shovel words which describe the effects of the battle. For the effects of the battle to be really apparent specific work needs to be done – piling and shoveling. The grass doesn’t need a verb to be repeated to make its point. The grass’s work is to â€Å"cover†, a verb which occurs once in the third line and which, thanks to the sentence structure, is not at all prominent in the way that shovel and pile have been made prominent. At the end the grass simply says â€Å"Let me work† – it doesn’t need to define or describe its work. Both you and the grass know what needs to be done. Sandburg has employed diction and rhythm that contrasts the theme of this piece. The lines are long and flowing when he describes war and death and, when he gets to grass, which should be a pastoral, gentle thing, he makes the lines clippy and short. And the diction expresses society’s detachment from war, our need to separate ourselves from it by hiding it away (either bodies in graves or by well chosen euphemism). He studiously avoids mentioning death, never gets personal (keeps the dead as â€Å"bodies† and no more) and the verbs shovel and pile is the way one would describe logs, earth or compost. Something not to linger over, but simply to get out of the way and then get on with life. Thanks to the work of the grass, the human inability and unwillingness to confront the horror of way, it only takes a short passage of time before the people have forgotten what it was like and have to ask the conductor, â€Å"What place is this? † The war is already forgotten and gone from the mind. And the grass knows that no matter how much time passes it will always have work to do. Wars come round again. It’s amazing how much Sandburg has managed to convey with such a short poem, especially when one considers the level of repetition which actually reduces the absolute number of lines to about 6 lines. There are other lessons to be learnt from this. By his choice of battles, Gettysberg, Ypres, Verdun etc Sandburg refers to battles that involved great carnage. Battles with a death toll or casualty rate so high that it is unthinkable that we should speak of them as dispassionately as he does. But the use of the names is far more effective in conveying this point than having to spell it out in detail. He can get away with the dispassionate tone and make it â€Å"fit† the poem without seeming forced by adopting the unusual view point of having the grass as the observer and the first person speaker. Not only does he cloak the grass with personality but he simultaneously creates a narrator who is present throughout time and who is accordingly in a position to observe the folly of man through history. Other than the merest hint of a rhyme across Waterloo / Verdun, this poem is devoid of rhyme. Why? Rhyme closes lines, links lines together, gives the work a sense of completion and wholeness which is precisely what Sandburg doesn’t want here. He wants the work to have a continuing, incomplete, work in progress feel. The poem is written in the present tense: â€Å"I am the grass, let me work†.

Management Shareholder Wealth Optimization

Table of Contents Introduction A Case against Shareholder Primacy Arguments in Favour of Shareholder Primacy Conclusion References Introduction In 1970, the distinguished economics professor Milton Friedman wrote an essay in which he argued that the sole social responsibility of a company is to generate profit for its shareholders. Bejou (2011) notes that the core message that Friedman was advancing through his argument was that the primary responsibility of managers was to the owners or investors of the company. Advertising We will write a custom essay sample on Management: Shareholder Wealth Optimization specifically for you for only $16.05 $11/page Learn More This outlook is regarded as the traditional shareholder primacy theory and its main argument is that the primary task of management is to maximise shareholders wealth. The school of thought further on proposed that organizations should not be concerned with solving social problems since this the responsibility of other actors such as the government. Friedman’s defence of managers’ duties to shareholders continues to be the prominent concept dominating corporate governance. In line with this reasoning, many top managers of public corporations today seek ways to increase the profits of their shareholders. This begs the question what is should the primary role of management in public corporations be. This paper will argue that management should expand its role and responsibilities to cater to the needs of other stakeholders in addition to the shareholders and owners of the company. Increasing the wealth of shareholders and owners should not be the core objective of management. To provide a balanced view on the subject, the paper will also review some of the arguments made in support of shareholder wealth optimization by management and offer counterarguments to the same. A Case against Shareholder Primacy Corporations cannot exist on their own; they need the input of other groups such as creditors, employees, and the government (Stout 2002). As such, the shareholders alone cannot make, much less sustain a corporation. For this reason, the other contributors to the existence of the corporation also need to be considered by management. Stout (2002) elaborates that the non-shareholder groups who contribute to the welfare of the corporation also need to be compensated in accordance to some explicit and/or implicit contracts. For example, the employees will engage in operations on behalf of the organization in return for a salary, favourable work conditions, and prospects of career advancement. If management’s only concern is shareholder wealth, they organization will not be sustainable and it will fail therefore hurting the shareholders and all the other stakeholders. Management that is focused only on maximizing the wealth of shareholders will damage the firm’s economic interests. Stout (2002) states that such management w ill be inclined to take wealth and resources from other corporate constituencies such as employees, creditors, and governments in order to increase shareholder wealth. Management therefore needs to consider the other groups who make a contribution to the corporation’s survival.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Emphasis on increasing the wealth of shareholders and owners will reduce the productivity of the firm since it might lead to lower employee motivation (Kellerman 2007). Motivation is a highly desirable attribute in employees since motivated employees are integral to the success of the business. Kellerman (2007) explains that job satisfaction plays a significant role in creating motivated employees who in return direct their energies to meeting organizational goals. If management only considers the profit interest of the shareholders, they are going to sell the c orporation to the highest bidder without considering the losses that may arise to the employees and the local community. Employee motivation will be diminished if the workers believe that the management will sell the company to the highest bidder even if such a move will negatively affect them. Such employees are unlikely to commit their careers or give their loyalty to the corporation. This will result in reduced productivity for the company and this will reduce returns to shareholders. Shareholder primacy has led to risky financial undertakings by management in their question to increase shareholder value (Bergstresse Philippon 2006). Many organizations have tied the pay received by top managers to the share price in an effort to incentivize them to increase company performance. Managers therefore have a vested interest in the increased profitability of the organization and they are motivated to ensure that shareholder interests are met. Bergstresse and Philippon (2006) confir ms that many bit US corporations are in the habit of offering extravagant pay packages to their top executives as a means to align the upper management interests with those of shareholders. When the self-interest of managers is tied to the wealth of the shareholders, they are likely to make decisions that are only aimed at short term gains by the organization. Such an approach might have dire consequences for the organization and the society at large. For example, the financial crisis of 2008 which led to a global recession has been blamed on top managers allowing self-interest to prevail over any other concern. Emphasis on increasing shareholder wealth can cause risky behaviour by management and this might damage the corporation.Advertising We will write a custom essay sample on Management: Shareholder Wealth Optimization specifically for you for only $16.05 $11/page Learn More The best interest of the shareholder group is not always served by profit maximization by management and therefore, the shareholder value ideology can lead to negative impacts on the well-being of the company and its investors (Stout 2012). Stout elaborates that an organization has various classes of shareholders and their needs and interests vary depending on their degree of investment and interests. While some may be concerned in the short-term earnings of the company, others might be interested in the long-term performance of the organization. The view that management should only seek to increase shareholders wealth is based on the wrong assumption that increase in share price is proof of greater economic efficiency by the company in question. Stout (2012) forcefully asserts that the performance of a business cannot be measured through any one single metric. By focussing on share price and ignoring other variables such as capitalization, board structures, and equity to name but a few, a wrong assessment of the company is bound to be made. Focussing on increasing profitability might discourage investment and innovation therefore harming the employees and the customers of the organization. Holmstron and Kaplan (2001) declare that managers who view themselves as representatives of the corporation and not the shareholders are likely to maintain a long-term vision of the company and therefore take steps to ensure its growth and stability. Management needs to avoid being obsessed with increasing the wealth of shareholders and owners in order to serve the best interest of the shareholder group. Focus on shareholder profitability will cause an organization to ignore the needs of the non-shareholder entities and this might be detrimental to the organization’s future. Organizations are affected by factors that are internal and external to them. Albright (2008) highlights the importance of the organization to have a good understanding and demonstrate sensitivity to the needs of its environment. There is a strong interdependence between the corporation and stakeholders such as customers, suppliers, creditors, the media, and activists. Management is therefore forced to balance the interest of shareholders with those of the other stakeholders in order to create a win-win situation from which everybody can benefit.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Shareholder wealth maximization will negatively affect the economy of a country since it might lead to reduction in production and the raising of prices by managers in a bid to increase profits (Solo 2000). This is especially the case if the organization holds a monopoly in the industry. As a monopoly, the corporation has the discretion to restrict production and raise prices without fear that the competitive forces will oblige it to react to the demand-supply forces. If the management in such a monopolistic organization holds strong shareholder-primacy view, his only concern will be to increase profitability. This will be achieved by lowering production in order to create excess demand and then raising prices. The manager could also lower the employment in order to reduce the production cost incurred by the company. All these factors will hurt the economy of the nation since it will lead to reduced production. The expansion of the company will also be deterred if the managers ar e only concerned with increased profitability. Emphasis on profits has led to many layoffs and mergers, which have driven the stock prices of company’s up at a considerable social cost. The American workforce has been the worst affected by the shareholder primacy norm practiced by many top executives. Grossman (2005) reveals that in the past two decades, over 45million Americans have been laid off as corporations downsize in order to increase their profitability by raising stock prices. Stout (2012) observes that managers who have weak shareholder wealth maximization norms are more likely to concentrate in increasing sales and industry expansion instead of aggressively trying to increase profitability. The manager whose primary objective is not to increase the shareholders wealth will invest in larger firms and build new factories in order to increase the production capacity of the organization. This will result in an increase in social wealth. Emphasis on shareholder wealt h maximization will be detrimental to the economic well-being of the society. The purpose of the organization is not only to make money for the business owners but also to fulfil other social functions which include † secure jobs for employees, better quality products for consumers, and greater contributions to the welfare of the community as a whole† (Stout 2002, p.1989). This is in line with Dood’s assertion that the business corporation is â€Å"an economic institution which has a social service as well as a profit-making function† (Stout 2002, p. 1989). If management is only concerned with shareholder interests, they will not make an effort to fulfil the obligations of the organizations to the society. Green (1993) explains that when the primary objective of management is confined to increasing shareholders and owners’ wealth, they cannot dedicate resources or managerial time to worthy causes since this will be deemed as embezzlement of organiza tion resources. Shareholder primacy therefore makes it impossible for management to fulfil other social functions and therefore ensure business success. A more prudent approach would be for management to try to maximize the â€Å"sum of all the returns enjoyed by all of the groups that participate in firms† (Stout 2000, p.1198). Such an approach would stop managers from taking actions that result in the maximization of wealth of shareholders in the short run while negatively affecting all the other participates in the firm. The shareholder wealth maximization norm is outdated since it refuses to acknowledge the importance of adopting socially responsible practices for the welfare of the business (Grossman 2005). Focus on shareholder profit maximization will lead to the removal of social factors that might reduce shareholder wealth. In today’s business environment, the financial performance of an organization is increasingly interconnected with its social performance. While organizations could in the past ignore the needs of the non-shareholders and still survive, the current environment is forcing companies to align their interests with those of the society order to ensure their future survival. The last few decades has witnessed an increase in the importance attributed to Corporate Social Responsibility (CRS). CRS. Stout (2012) observes that an emphasis on CRS by European companies has enabled them to compete favourably with the American multinationals that have dominated the global market for decades. Adopting the shareholder primacy theory will therefore hurt the overall performance of the business since management will fail to satisfy social interests. Grossman (2005) best articulates this by stating that â€Å"in order to truly maximize profits a company must engage with social interests† (p.575). Managers should seek to not only produce good returns for investors but also provide good work conditions for the workforce and serve t he community by making quality products and being a good corporate citizen. Management has a moral and ethical obligation to consider the interests of all stakeholders in their decision making (Boatright 2006). These obligations include a guarantee to honour agreements and contracts, honesty, and legitimacy in conducting business to name but a few. Shareholder primacy might cause management to ignore its moral obligations when they do not contribute to an increase in the profitability of the corporation. Managers can ignore ethical obligations that and agreements that are not codified in laws. The public confidence in corporations is significantly lowered by the culture of profit at all costs (Jenster Hussey 2001). For an organization to function effectively, it needs to gain the confidence of the market. This confidence will increase the chances that people will be willing to invest in the corporation or endorse its products. Arguments in Favour of Shareholder Primacy The major r eason given by advocates of shareholder primacy is that the corporation belongs to its shareholders and due to this ownership; their interests should be put first (Holmstron Kaplan 2001). Friedman best advocated this school of thought in his 1970 essay where he noted that managers are agents who have promised to serve the shareholders who have entrusted them with their property (Green 1993). Management is therefore bound to act diligently in the best interest of the owners. Stout (2002) reveals that this argument is flawed since shareholders do not in actual fact own the corporation but rather own stocks which means that they their ownership is limited. Boatright (2006) agrees with this by noting that shareholders do not own the corporation in the same way that a person could own a house or a vehicle. The alleged ownership refers to the bundle of rights that these group has. Shareholder primacy is based on the premise that more profits will lead to the creation of wealth for indiv iduals that will in turn benefit society (Husted de Jesus 2006). This argument holds true since creating wealth for individuals makes the community dynamic and people are able to engage in more economically productive endeavours. A look at the prominent economic systems of the world supports this since the capitalistic ideology which favours the capital contributors in the society is the most successful and vibrant system in the world. Placing emphasis on profits leads to strong performance by the corporation. Husted and de Jesus (2006) observe that strong industrial performance is beneficial to the society. Proponents of shareholder primacy argue that profit seeking will result in more efficient utilization of resources by management in order to increase productivity and in the end, offers the greatest benefits to the society as a whole. While it is true that shareholder primacy will result in higher returns, this wealth is not distributed to a large number of society members. Instead, it is concentrated within a few disproportionately wealthy members of the society. The argument that shareholder primacy will benefit society by creating wealth for many individuals in the society is therefore not entirely true. With this consideration, Grossman (2005) suggests that corporations owe an obligation to society to at least be good corporate citizens and provide some social services even if these might decrease their profits. Social responsibilities imposed on business may hamper business growth and render it unable to operate (Husted, BW de Jesus 2006). Friedman argued that management â€Å"possess neither the authority nor the moral right to divert shareholders’ profits for the welfare of the general public† since they are merely agents of the stockholders (Grossman 2005, p.574). Advocates of shareholder primacy reinforce this argument by asserting that it is not right for the society to impose welfare obligations on the corporation. If individ ual stockholders choose to use their profit for worthy causes, they can do this but the choice should not be made by managers who have been appointed to run the company. While market forces should be the main determinant of how the corporation reacts, the corporation has an obligation to the society. Businesses have to conform to the basic rules of the society and avoid seeking only profits. Stakeholders assume significant risk by investing their resources to the firm and for this reason, their financial interests should be the primary objective of management. Individuals who invest in corporations do this in the hope of achieving greater returns in business than they would if they engage in business activities independently. Boatright (2006) states that the prospect of significant financial benefits is what makes individuals with economic assets voluntarily agree to contribute their assets to production in an organization. Shareholders are likely to suffer from personal losses if the corporation fails. This is because they are the people who have invested money into the organization. Since shareholders agree to take up significant risk in investing in the corporation, it is appropriate for the managers to work towards ensuring that these risk takers obtain high levels of profit from their shares. Risk taking does not give the stakeholders all the power over the corporation. While the other stakeholders might not take the risk, their involvement facilitates the profitability of the organization. Their concerns should therefore also be addressed. Conclusion This paper set out to dispute the accepted financial axiom that the primary objective of management is to increase the wealth of shareholders and owners. The paper has demonstrated that the shareholder wealth maximization concept does not serve the best interests of the society as a whole. It has shown that the assumption that shareholder primacy and other party’s interests coincide since the maximi zation of stockholder wealth improves the welfare of society is wrong. It has revealed that the view that companies with rising share prices are economically efficient is flawed since business performance should not be measured through a single metric. Weak shareholder wealth maximization norms have also been observed to be healthier for the economy of a nation since they can have the impact of increasing national wealth through increased production. Voices have over the last two decades been raised against the shareholder primacy model advocated by Friedman. Corporate managers are increasingly required by the society to consider the interests of more than just the shareholders and owners of the company. This paper has demonstrated that corporations are faced with expectations not only from their shareholders but also from their employees and the society. They must therefore act in a manner that takes into consideration the needs of non-shareholder actors. A corporation that addre sses societal needs has a greater chance of succeeding and therefore increasing the value for its stakeholders. Management should therefore overcome its predisposition to only focus on the needs of the shareholders and make decisions that appeal to the needs of all the relevant stakeholders. References Albright, SK 2008, ‘Environmental scanning: radar for success’, The Information Management Journal, vol. 12 no. 2, pp. 38-45. Bejou, D 2011, ‘Compassion as the New Philosophy of Business’, Journal of Relationship Marketing, vol. 10 no. 1, pp. 1-6. Boatright, J 2006, ‘What’s Wrong – and What’s Right – with Stakeholder Management’, Journal of Private Enterprise, vol. 11 no. 2, pp. 106-130. 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Stout, L 2002, ‘Bad and not-so-bad arguments for shareholder primacy’, Southern California Law Review, vol. 75 no. 1, pp. 1989-1210. Stout, L 2012, ‘The problem of corporate purpose’, Issues in Governance Studies, vol. 48 no. 3, pp. 1-14. This essay on Management: Shareholder Wealth Optimization was written and submitted by user Isabella Tyler to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.