Social Responsibilities of a Business Organization towards Shareholders


This resource gives information about the Social Responsibilities of a Business Organization towards Shareholders

Shareholders are the owners of the company. They invest their money and also undertake risk. Therefore, the company owns responsibilities to its shareholders as mentioned below :-


  • To provide good and regular return on investments.
  • To earn profit and bring financial soundness to the company and the investors.
  • To make planning for the growth, stability and progress of the company.
  • To give information about finance to the shareholders by providing annual reports, director's report, profit and loss account, balance sheet, etc.
  • To build and maintain goodwill of the company in the eyes of society.
  • To make proper use of funds of shareholders.
  • The directors should not make reckless speculation, i.e. unfair practice on the stock exchange and manipulation to increase the price of the shares.
  • To assure steady growth of the investment by appreciation in the market value of shares.


Comments

No responses found. Be the first to comment...


  • Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
  • No HTML formatting and links to other web sites are allowed.
  • This is a strictly moderated site. Absolutely no spam allowed.
  • Name:
    Email: