Shareholder wealth maximization is taken to comprise of three major components; value-

creation (approaches to increase optimum value for the future), assessing value, and value

management. The aspect of maximizing wealth for the shareholders is the most appropriate in

upholding a long-term organizational sustainability. Value generation for the sake of

shareholders is the core factor of organizations in the market place. It is undeniably true to say

that it is common to find that very few decisions do not consider the long-term value concept,

(Jones & Felps, 2013).

The main issue that exists is that most management lack prior understanding and knowledge of

the distinction between decisions that bring about higher profits and profits that create value.

Value creation does not just entail the application of a collection of techniques but it majorly

looks at the creation of a competitive advantage in the organization’s external competition. VBM

– Value based management looks at assessing, encouraging, and supporting the establishment of

net worth. VBM is taken into consideration because business is mostly about value creation,

(Burkert & Lueg, 2013).

The 3BL – triple bottom line reporting standard is in support of an organization’s social,

environmental, and ethical performance. As far as 3BL is concerned, the aspect of transparency

claim comes into focus thereby making firms obligated to shareholders to give full details in the

manner in which its performance with regard to the stakeholders is undertaken, (Henriques &

Richardson, 2013). The convergence claim assesses social performance of an organization

hence; a firm tries it best to be the most profitable and as a result, the shareholders’ wealth is

maximized. In conclusion, maximizing profit is the most suitable in ensuring sustainability for

the future and for 3BL.