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Shareholder wealth maximization, business ethics and social responsibility

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  • Poitras, Geoffrey

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.

Suggested Citation

  • Poitras, Geoffrey, 1994. "Shareholder wealth maximization, business ethics and social responsibility," MPRA Paper 113221, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113221
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    File URL: https://mpra.ub.uni-muenchen.de/113221/8/MPRA_paper_113221.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Omid Sabbaghi, 2024. "The United Nations Sustainable Development Goals and global finance: Recent evidence," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4020-4033, September.

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    More about this item

    Keywords

    Shareholder wealth maximization; Business Ethics; ESG;
    All these keywords.

    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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