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.

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