Main Goal of Corporation and Stakeholders

For-profit corporations are in business to maximize value for all of their stakeholders. A stakeholder can be defined as anyone who has a vested interest in the success of a corporation including but not necessarily limited to shareholders (holding shares of stock in the corporation), employees, vendors/suppliers, distributors, franchisees, community members, etc. Value will differ depending on the stakeholder. The local community might define value as to how the corporation gives back to the community. An employee might find value when she receives her paycheck or when she receives a raise. A shareholder would like to see an increased stock price (maximization of profits) and that will only happen through an increase in earnings and a management of cost. Furthermore, what might be good for one corporation might not be good for another.