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Shareholder Primacy

Shareholder primacy is a theory in corporate governance holding that a firm's primary responsibility is to its shareholders. This perspective posits that the main objective of a company's management should be to maximize shareholder wealth, typically by increasing the company's stock price. Other stakeholders, such as employees, customers, and the community, are considered secondary, and their interests are addressed only to the extent that doing so benefits the shareholders.

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Updated 2025-08-21

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