Shareholder Theory is a business concept that emphasizes the primary responsibility of a corporation to maximize profits for its shareholders. According to this theory, the main goal of a company is to increase the financial returns for those who own its stock. This perspective suggests that by focusing on shareholder value, companies will ultimately benefit society through economic growth and job creation. Critics of Shareholder Theory argue that it can lead to short-term thinking and neglect other important stakeholders, such as employees, customers, and the community. They advocate for a broader approach, like Stakeholder Theory, which considers the interests of all parties affected by a company's actions.