Organizational purpose - Missioning and visioning - Perspectives on missioning and visioning
4 important questions on Organizational purpose - Missioning and visioning - Perspectives on missioning and visioning
What are the diametrically opposed positions of perspectives on missioning and visioning?
The main pointy of contention is whether firm should primarily be run for the financial benefit of the legal owners or fot the broader benefit of all parties with a significant interest in the joint endeavour.
- Shareholder value perspective
- Stakholder value perspective
What is the purpose of corporations accoring to the shareholder value perspective?
The emphasis on profitability does not mean that supporters of the shareholder perspective are blind to the demands placed firms by other stakeholders. It is however not the corporation's purpose to serve them.
The only duty of the company is to maximize shareholder value, within the boundries of what is legally permissible.
What major challenge is identified by the supporters of the shareholder value perspective?
- Higher grades + faster learning
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Explain the stakeholder value perspective.
The purpose of an organization is to serve the interests of all parties involved.
Balancing the different interest requiers on ongoing process of negotiation and compromise.
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