Question

1. Explain fully why maximizing shareholders wealth is or is not the only responsibility of a company.

2. Explain why you feel a company does or does not have a responsibility to be a good corporate citizen and not only focus on maximizing profit,
but also focus on the planet, people, and society?

Answer 1

1)maximizing shareholders wealth is not the only the single responsibility of a company.There are certain other responsibility of a company such as increasing market share ,when the market share increases company can have monopoly in long run and for this company have to make various stratergy.Company tries to grow day by day by taking over small companies and growth helps the survival of company in long run .Company also want to build brand name and reputation because it will increase both market share as well as profit of a company .company also address environmental issues at it makes it popular among the people .

2)company should take up a responsibility to be a good corporate citizen .First thing companies should always consider that if they are harming environment then they are harming their own business in long run and earth is our only shelter if it dies we will also die and then there wont be any business secondly company should be responsible towards the society also because in a unstable society company can not do any business for example no company can do business in Syria because the society and condition over their is highly unstable.