Shareholder value is not the only purpose

11/1/2013 | Knowledge@Wharton

Companies shouldn't make shareholders their only priority, says Eric W. Orts. While shareholder value is important, there are other criteria -- such as employee well-being and motivation, for example -- that should also be weighed by decision-makers. "It's one measure of how firms are doing well or not doing well, but it's not the only measure," Orts says.

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