Two models exist that argue two points of view as to what the purpose of organizations are supposed to serve.The first, put forth by Adolf Berle, is the Shareholder Model.Basically, Shareholders are the "principles" or "owners" of the corporation therefore all decisions made by the management team should benefit the Shareholders first and foremost.The second perspective is put forth by Merrick Dodd; that perspective is the Stakeholder Model.This model puts the purpose of the corporation as serving all Stakeholders first and all decisions made by management are to be done with the Stakeholders in mind.

Opinion about this article.Why do corporations exist?Are they supposed to serve Shareholders first and foremost with their decisions or are they supposed to satisfy the Stakeholders?