Corporate wealth maximization (CWM) is the corporate goal of maximizing the total wealth of the corporation itself rather than just the shareholders' wealth. Wealth is defined to include not just financial wealth but also the technical, marketing, and human resources of the corporation. "Consequently, it goes beyond the wealth measured by conventional financial reports to include the firm's market position as well as the knowledge and skill of its employees in technology, manufacturing processes, marketing and administration of the enterprise." (Ref. The Shaping of Strategic Direction, New York Basic Books, 1983.)
Definition