Page 9 - Flip Banks TG
P. 9
Profit & Shareholder Value
Profit is often quoted as one of the primary objectives of
business but this tends to be used as a blanket objective.
It often does not explain how an organisation arrives at the
profit it does. Reducing costs will increase profit. Increasing
profit will maximise shareholder value. The problem arises
when the means adopted to increase shareholder value is
morally corrupt for example HSBC and money laundering
for criminal cartels or WFB and senior executive
compensation e.g. Tostedt. (2)
