Viewpoints to Judge a Firm's Performance and The Clientele Effect

Managerial Finance
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Managerial Finance
Financial performance is one of the primary ways to judge a firm. However, there exist other viewpoints by which a company’s performance can be judged. Some chief executive officers from big corporations, such as JPMorgan Chase and Apple Inc., who are members of the Business Roundtable argued that a firm can be judged based on its commitment to deliver value to its clients or protecting the environment (Gelles & Yaffe-Bellany, 2019). Besides, every company focuses on achieving its specific corporate purpose. Other firms might be judged based on their ethical standards, their position on immigration, guns control, and worker pay policies.
A company’s primary goal should not be just maximizing shareholder value. If the firm has other objectives, it can attract like-minded investors. In most cases, many organizations fail to pursue other goals since they are tied to a vicious cycle of shareholders’ wealth maximization (Kothari, 2018). In that light, resources are only used to increase profitability. However, if an organization wants to protect the environment,...