1. Do you agree or disagree with Collison and why? 2. If ‘profit’ maximization is biased towards maximising the interest of only one stakeholders group, would you expect that over time there will be...

Collision’s View
8
    Accountancy & Stakekholders
    Collision’s View
    Profit Maximization
    
    Student Name
    5/30/2012
Contents
3Introduction
3Profit Maximization and stakeholders
31.
Customers:
42.
Shareholders:
43.
Suppliers:
44.
Human resource of the company:
4Advantages:
5Disadvantages:
5Some other measure of performance
7Conclusion and Judgment
Introduction
Yes I do agree with Collision and his way of thinking on this approach. Business stakeholders are many and hence they have been always after the way accounting numbers at the end of any quarter or year. Accounting methods of reporting financial condition of the company have been there for years and no one has been able to find out ways to change it or remove it. Many authors have claimed that financial reporting and accounting is only keeping in mind one stakeholder that is the investor of the company. It is very critical that reporting standards are improved and all major stakeholders are involved during reporting. Accounting world has always reminded us that interest of only one single stakeholder in the company should always be maximized. I agree with collision on the background that there is no better approach although global reporting initiative has developed and accounting standards have evolved in reporting. There is no one single approach which can change the way it is reported. Global reporting initiative is environmental concerned organization and allots rankings to the reporting standard of the company. (A.D. Woodhead, 1997)
Profit Maximization and stakeholders
Profit Maximization is a function which accountants and shareholders of any corporations are looking into. This is keeping in mind only one stakeholder of the company. There are many stakeholders in the company and hence one goal is not prudent enough. Some of the key stakeholder in any organization is:
1. Customers: These are the people who are providing the means to the company and hence company should always be acting responsibly towards them.
2. Shareholders: These are the bunch of people who are providing company with means and methods of performing business. In return of the capitals they expect huge benefits in increasing the benefits of the shareholders.
3. Suppliers: These are the people whom you are using to resource critical aspects of business. These bunches of people are very important and good relation with them is always welcomed and expected. (Mary Mindak, 2011)
4. Human resource of the company: these set of stakeholders work in and out to make company successful. It is very important that these people are rewarded in the right manner. If profit maximization is a...