Shareholder Primacy
Shareholder primacy is a corporate governance concept that prioritizes the interests of shareholders (owners) above all other stakeholders, such as employees, customers, or the community. It asserts that a corporation's primary purpose is to maximize shareholder value, often measured through stock price and dividends. This principle has historically guided many business decisions in capitalist economies, particularly in the United States.
Developers should understand shareholder primacy when working in corporate environments, as it influences business strategies, funding priorities, and ethical considerations in technology projects. It is relevant for roles involving corporate governance, finance, or product management, especially in publicly traded companies where maximizing returns for investors is a key driver. Knowledge of this concept helps in navigating trade-offs between profit motives and broader social or environmental responsibilities.