Shareholder welfare maximization is good for the shareholders and the society because the shareholders’ welfare
comes from welfare created by the firm after fully compensating everyone and the society involved for all the
resources used (Krishnan). This idea mediates opinion that the attainment of stakeholder’s needs other than the owner
is a trade off with the attainment of maximum welfare goals for the owner. Value maximization that is consistent with
social welfare maximization is a value maximization for long term, which the sustainability of the company is more
guaranteed because of good relations with the input providers, and avoidance of social and law cost if the company
inflicts a loss for stakeholder. This principle is delivered by Freeman (2004 in Sundaran & Inkpen 2004) in a statement
that a fair rate of return for its shareholders is achieved by the company through investment decision that needed so
that the world will be a better living place for all parties.