Question

\Subsequently the company decides to contract with a more sustainable company. Some important shareholders attempted to block this proposal. Their belief, as the owners of this company, is that the company should aim to maximize the value of their shares, however, the new business plan could significantly increase the costs and therefore reduce the profit. You are required to identify an organisation, business or industry and explain whether and how it could potentially increase the value of its shares in the long term by being accountable to its major stakeholders. You are required to undertake some research to answer this question.

Answer 1

Answer)

No doubt Globalisation has made companies more powerful than the governments of the world. The company's basic aim should be that its success should be dependent on its relationship with society and environment. Creating value for the shareholders does not depend on making money but by creating amicable environment in the company so that the work carried out by the shareholders goes on smoothly and also ensuring mutual trust among the employees of the company.  

Corporate Governance is a key reform measure used to enhance the benefits of investment in the society. It includes various measures which is used to protect both the domestic and foreign investors.

Disclosure of all information to its shareholders is the most important aspect of corporate governance as it includes transparency in the working environment of the company. Material information should reach the markets and other organisation in a cost -effective, easily accessible and timely manner. So for the companies to attain sustainable development in the long run , there is increasing need for them to increase the value of its shares in the long run and notifying the same to its shareholders. The dissemination of information should be healthy and this will build mutual trust among the shareholders.