Explore the critical link between robust corporate governance practices and sustainable firm value creation. Effective governance frameworks drive transparency, accountability, and ethical decision-making, ultimately enhancing investor confidence and contributing to superior financial performance and long-term shareholder wealth.
Shareholder primacy, the principle that corporations should primarily serve the financial interests of their shareholders, significantly influences global business strategies. This paradigm impacts everything from supply chain management and international investment decisions to corporate social responsibility, often leading to a focus on short-term gains and potentially clashing with broader stakeholder interests in a diverse global economy.