Showing posts with label stakeholders. Show all posts
Showing posts with label stakeholders. Show all posts

Wednesday, January 13, 2016

Market incentives



That's was how I answered a question about "the effects of market incentives", it was a course about social and ethical responsibilities in my MBA program.
I do completely agree with the statement: “profit is the reason for businesses to exist” and the only way to explain why is with examples.
The most powerful stakeholders who influence the business decision making are those who finance it; shareholders, and their ultimate goal from investing money in business is to generate return on their investment, if there’s no satisfactory return, the decision makers in the company will face the possible threat of shareholders withdrawing their investments.