Shareholder Wealth Maximisation Essay Example | Topics and Well Written Essays - 2500 words

Shareholder Wealth Maximisation - Essay Example While on the other hand CSR refers to the obligation that a business has towards the society for using it as resource. In this era of global business, maximisation of shareholder's wealth has frequently exposed violations to the responsibility that a business has towards the society. (Roe M.J., 2001) The dawn of Globalization was characterised by reformative measures in economies, mobilization of funds and growth at unusual pace. After the initial precipitation it appeared that much had to be evaluated in terms of gains and losses as a whole. Accordingly, the concept of Shareholder's Wealth Maximisation has been critically evaluated by many and subsequently other theories have been developed. However, moving on to the other approaches a better understanding of the market conditionals is needed. In business economies the markets are divided according to the structural variations. There are perfectly competitive markets which is the majority and there others such as the Monopoly, Monopolistic competitive markets and the Oligopoly markets. The shareholder maximising theory has created much stir in the perfectly competitive markets such as the U.S. The points are discussed in the later part of the study. However in a monopoly market the maximisation theory can be alarming. The shareholders in a monopoly market will try to maximise the profit by producing less and hiking price. The additional premium will be increasing the shareholder's wealth if primacy norms are higher. If, however, the primacy norms are weaker the above condition will enhance the Nation's wealth. As the world is now a global village the differences in the different market no longer exists. Therefore everybody is more worried on the system and approaches to functioning rather than on the place. The instances of the bankruptcies, fraudulent practices, concentration of wealth has given rise to other schools of thought in the objective of a business. Alternative Approaches An overlook at different economies will point out broad groups in the style of functioning. There are traditional and radical players, there are modern and flexible counterparts and there are nations who have mixed approaches to structural formation. For example countries like U.S. or U.K. are known for their shareholder wealth maximisation culture, on the other hand countries like Japan and Germany are known for their Stakeholder Maximisation concept. The shareholder maximisation theory rules that the managers of a firm will conduct fiduciary duties towards the maximising the investors in the firm. The Stakeholder Concept states that the managers' goal should not only be to maximize the shareholders' wealth but also take into consideration the stakeholders. The stakeholders of a firm are the employees, suppliers, customers and the local communities. (Allen F. & Zhao M., 2007) The Stakeholder concept, popularized by R. Edward Freeman, gave the world an important aspect to think. The theory was powerful enough to change the structural framework of economics and law. The importance of capital always existed in the world of business but it undermined the contribution of other factors

Wellness,Fitness & longevity Assignment Example | Topics and Well Written Essays - 750 words

Wellness,Fitness & longevity - Assignment Example This, coupled with the fact that exercise helps one in maintaining proper body weight and thus avoid the diseases associated with obesity, makes it very easy to understand the importance of a physically active lifestyle. However, exercise is often confused with the term physical activity. One needs to understand that a difference in intensity is what distinguishes the two terms. While exercises are usually vigorous, physical exercises are rather moderate or less intense. An easy way to explain this would be to state the idea that moderate physical activities are the ones during which one can talk without losing their breath. For example, brisk walk and performing waltz are considered as moderate physical activities while in contrast, jogging and aerobics are typical kinds of vigorous exercise (Powers et al, 2003). The guidelines of the amount of physical activity needed by individuals differ with the age group. While children are advised a minimum of an hour long physical activities on a daily basis, young adults are expected to at least perform upto 150 minutes of moderate activities per week (Brown et al, 2010). The guidelines for older adults may go the same way as for the younger ones but their choice of the possible activities is limited due to the aging factor. The 150 minutes per week guideline, but with the activities spread throughout the week, is also advised for women during their pregnancy and postpartum period (Brown et al, 2010). These discussed guidelines were developed after an extensive analysis of scientific research was conducted by the concerned authorities. The purpose of developing them was to help people adopt a healthier lifestyle. Along with the guidelines, another set of comprehensive strategies and practices called the National Physical Activity Plan has also been developed (Brown, Heath & Martin, 2010). It has also helped set objectives related to health for a period of ten years; the most recent one was launched