Many scholars and managers endorse the idea that the primary purpose of the firm is to make money for its owners. The shareholder wealth maximization (SWM) objective is justified on the grounds that it maximises social welfare. Although this shareholder primacy model may have been appropriate in an earlier era, it no longer is, given our current state of economic and social affairs.
In light of the above statement. You are required to write an essay contrasting the SWM primacy with stake holder theories (objectives) and why SWM was deemed superior but it is currently changing. Your essay should explore corporate objectives and how agency theory shapes these. The essay should make use of studies that support and critique the SWM primacy. You should also explore corporate objectives of two listed companies of your choice and use these to inform your essay. Provide your own recommendations on how you think corporate objectives should be set out.