shareholder model

The shareholder model is a perspective that sees a company's main goal as maximizing value for its shareholders—those who own shares in the company. It emphasizes making decisions that increase stock prices and dividends, prioritizing shareholder interests. This approach often focuses on short-term financial performance and profitability, with the belief that doing so benefits the company, its employees, and the economy overall. While it encourages efficient management, critics argue it can overlook broader social responsibilities and stakeholder needs beyond just investors.