Why profit maximization is not the goal of a company or maximizing shareholders wealth is the goal of a firm?

Profit maximization is often criticized as a short-sighted goal because it focuses solely on immediate financial gains without considering long-term sustainability, ethical practices, or stakeholder interests. In contrast, maximizing shareholder wealth encompasses a broader perspective, aiming to enhance the value of the company over time while balancing the needs of customers, employees, and the community. This approach fosters sustainable growth, brand loyalty, and a positive corporate reputation, ultimately benefiting shareholders in the long run. Thus, prioritizing shareholder wealth aligns a firm's objectives with sustainable business practices and long-term success.