Corporations owe more than just maximizing shareholder value, but also have other responsibilities(eg. environment community etc.)

Expert Solution

Solution. A corporation operates to meet objectives by delivering goods and services effectively and efficiently. In this process, it incurs costs which are required to be reported to reflect true financial position to carry out operations. Financial statements along with social accounting is required to be reported during an accounting period for a corporation to sustain in today's global competitive economic market.

Maximizing shareholder value is one of corporation's responsibility along with committing to environment and resource protection as resources are scarce and human needs unlimited, incorporating sustainable practices in the workplace to enhance employee's work ethics along with morale to contibute to society. This allows a corporate to develop social impact to attract customer loyalty by taking active part in volunteering activities to benefit society and people at large.

ekkarill92 answered 2 years ago

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