Topic 1 - The Financial Manager and the Company - Text Chapter 1

Issue #1 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.