Included with the Topic 1 discussion was the issue of recognising the interests

of company stakeholders.

Required:

a)

Comment on whether the issue of stakeholder recognition, conflicts with

the overriding financial management objective of the maximisation of

owner (shareholder) wealth.

b) Why is it often stated that companies looking after the interests of all

stakeholders is 'good' corporate governance? Include in your discussion

what is meant in this context by corporate governance.