Many observers ... [claim there is]. evidence of the failure of the shareholder theory - that managers primarily have a duty to maximize shareholder returns - and the victory of stakeholder theory, which says that a manager's duty is to balance the shareholders' financial interests against the interests of other stakeholders such as employees, customers and the local community, even if it reduces shareholder returns." Jeff Smith in the MIT Sloan Management Review of 15 July, 2003.

a. Explain shareholder theory

b. Explain stakeholder theory

c. Critically review the debate between them

d. Give your own reasoned view of the matter