Scenario 1: Consider the statement in the textbook that the goal of financial management is to maximize the market value of owners' equity (or equivalently in the case of public companies: maximize the current per share value of existing stock). Do you think such a goal underserves other stakeholders in the firm, such as customers, employees, and the community? Our textbook states that the primary goal of financial management is to maximize the market value of owners' equity. This goal doesn't necessarily underserve other stakeholders like customers, employees, and the community. The goal of financial management is to influence one piece of the firm, but it relies heavily on other employees and the trends of their customers. For example, if a company offers poor customer service, it will eventually negatively impact sales and could jeopardize the market value of the owners' equity. The financial manager should be able to look at things from a macro perspective and how all aspects of the firm influence one another. It may not fall on the financial manager to improve on customer relations and employee satisfaction, it's still important that they understand how the company is doing relative to its competitors and previous quarters/years. All of these items will have an impact on the market value of owners' equity. A company that works to serve all of its stakeholders, will have a better chance at thriving in the current market