Shareholder value maximization the dumbest idea in the world Former GE CEO Jack Welch

Required:

Please read the 2 February 2015 Forbes article by Steve Denning Salesforce CEO slams The Worlds Dumbest Idea Maximizing Shareholder Value and the 2 April 2016 Economist article Analyse this!

Using the AREA schedule on the next page, discuss why financial reporting subscribes to the view of shareholder value maximization. Discuss the implications of an adoption of integrated reporting for the concept of shareholder value maximization.

Additional resources you might find helpful in answering this question.

AASB (2014) Conceptual Framework. http://www.aasb.gov.au/admin/file/content105/c9/Framework_07-04_COMPjun14_07-14.pdf (viewed 19 January 2017).

IIRC (2013) International Integrated Reporting Framework. http://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf (19 January 2017).

Denning, S (2011) The Dumbest Idea in the World: Maximizing Shareholder Value. Forbes, 28 November 2011, http://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder-value-the-dumbest-idea-in-the-world/#fa9f19c22241 (19 January 2017).[1]

ANALYSE: (30-50 words) Identify the issue and why it matters. Determine what you need to find out.

RESEARCH: (200-250 words) Present relevant facts and evidence, or issues.

EVALUATE & ANSWER: (200-250 words) Provide your opinion of the themes or issues you have identified, justified by the evidence you have gathered and evaluated.