Former GE CEO Jack Welch called “ shareholder value maximization the dumbest ide
ID: 2603119 • Letter: F
Question
Former GE CEO Jack Welch called “shareholder value maximization the dumbest idea in the world”.
Required:
Read the 2 February 2015 Forbes article by Steve Denning “Salesforce CEO slams ‘The World’s Dumbest Idea’ Maximizing Shareholder Value” and the 2 April 2016 Economist article “Analyse this!”
Using the AREA schedule on the next page, discuss why financial reporting subscribes to the view of shareholder value maximization. Conclude whether a change is necessary and how it would need to change to allow for a different view.
Additional resources you might find helpful in answering this question.
AASB (2014) Conceptual Framework. http://www.aasb.gov.au/admin/file/content105/c9/Framework_07-04_COMPjun14_07-14.pdf (viewed 19 January 2017).
IIRC (2013) International Integrated Reporting Framework. http://integratedreporting.org/wp-content/uploads/2013/12/13-12-08-THE-INTERNATIONAL-IR-FRAMEWORK-2-1.pdf (19 January 2017).
Denning, S (2011) “The Dumbest Idea in the World: Maximizing Shareholder Value. Forbes, 28 November 2011, http://www.forbes.com/sites/stevedenning/2011/11/28/maximizing-shareholder-value-the-dumbest-idea-in-the-world/#fa9f19c22241 (19 January 2017).[1]
The articles mentioned here are all available on Blackboard.
ANALYSE (30 – 50 words)
Identify the issue and why it matters. Determine what you need to find out.
RESEARCH (300 words)
Discuss relevant facts and evidence, or issues.
EVALUATE & ANSWER (50 – 100 words)
Provide your opinion based on your discussion of relevant facts, evidence, or
[1] The required reading (i.e. the 2015 Forbes Article) is a summary version of the 2011 Article. Read this article if you need more context.
Explanation / Answer
Former GE CEO Jack Welch called “ shareholder value maximization the dumbest ide
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.