The shareholder primacy model asserts that a corporation is primarily accountable to its shareholders, who own portions of the company through stocks. This model encourages corporate decision-making to focus on maximizing shareholder value, often measured by stock price returns and dividends. Advocates of shareholder primacy believe it drives managers to pursue profitability and efficiency. Critics argue that this model may undermine the interests of other stakeholders, such as employees, customers, and the community, leading to short-term profit maximization at the cost of long-term sustainability.