NPV analysis assumes that managers objective is to maximize shareholders value. Directors on the boards of Canadian

Question:

NPV analysis assumes that managers’ objective is to maximize shareholders’ value. Directors on the boards of Canadian firms are required to look after the best interests of the corporation. Traditionally, this has meant the best interests of shareholders. The law firm of Osler, Hoskin and Harcourt maintains a public website providing detailed descriptions of the duties and responsibilities of Canadian directors (osler.com/NewsResources/Publications/Guides/). What are some of the difficulties in broadening the definition of corporate stakeholders? Do you think shareholders’ interests alone should be considered by directors? Why or why not?

Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...

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