Company directors and managers goal of maximising profits Essay

Company directors and managers goal of maximising profits - Essay Example Company directors’ and managers’ goal of maximising profits Managers and the directors set objectives which they struggle to attain of which the main objectives are earning profit, adding to wealth of shareholders, growth and customer satisfaction etc. Directors, at times, are more concerned with growth of the company and addition to the wealth of the shareholders while meeting the expectations of the shareholders with considerable profits as they are the ones owning the business. The prime responsibility with which the directors are entrusted is to maximize the profits for the shareholders of the company who are the actual owners of the company and to them the directors are accountable to. Since the directors of the company are the representatives of the shareholders and act on behalf of the shareholders, the onus lies on them to keep the interest of the shareholders in mind to the add to the wealth of the shareholders who have invested in the company for the same. The key purpose of the board of directors along with the managers is to make sure the prosperity of the company through jointly handle the affairs of the company, at the same time meeting the suitable welfare of its stakeholders especially the shareholders. Klaus J. Hopt mentioned in his research that â€Å"Being responsible for the going concern of the company the directors hold themselves liable and accountable to the shareholders and aim at maximizing their returns, where the law also directs them the same.†