1-7 Goals of the Corporation The primary goal is shareholder wealth maximization which translates to maximizing stock price sHould firms behave ethically? YES! oDo firms have any responsibilities to society at large? YES! Shareholders are also members of society Copy right C 2002 by Harcourt, Inc. All rights reserved1 - 7 Copyright © 2002 by Harcourt, Inc. All rights reserved. ◼The primary goal is shareholder wealth maximization, which translates to maximizing stock price. ⚫Should firms behave ethically? YES! ⚫Do firms have any responsibilities to society at large? YES! Shareholders are also members of society. Goals of the Corporation