Final answer:
The debate centers around whether corporate responsibility should prioritize shareholder value or balance the interests of all stakeholders.
Step-by-step explanation:
The debate between shareholder-value perspective and stakeholder-value perspective theories revolves around corporate responsibility. Shareholder-value perspective suggests that managers should act solely in the interest of shareholders and focus on increasing their wealth. On the other hand, stakeholder-value perspective argues that managers should balance the interests of all stakeholders, including shareholders, employees, customers, and communities.
From a shareholder-value perspective, the primary obligation of the company is to maximize shareholder wealth. This theory emphasizes that shareholders invest capital and own a portion of the company, and executives should prioritize their interests. However, the stakeholder-value perspective advocates for considering the interests of all stakeholders, not just shareholders. This theory recognizes that corporations have broader impacts on society and should use their resources in the interests of all stakeholders.
In practical terms, the implementation of these perspectives can vary depending on the context and country. Some countries place more emphasis on shareholder value, while others focus on stakeholder value. Ultimately, the choice between these perspectives depends on the ethical framework and values of the stakeholders involved.