Do you feel a business’ primary responsibility is to make a profit, or do you feel there is some responsibility to do “good” and perform ethically to best serve society?
Do you feel a business’ primary responsibility is to make a profit, or do you feel there is some responsibility to do “good” and perform ethically to best serve society?
The primary responsibility of business is not only to make profits but there are certain other responsibilities which are as follows:
1. Responsibility towards Society i.e. do business ethically.
2. Responsibility towards Shareholders i.e. increase in earnings per share.
3. Responsibility towards Consumers i.e. better quality of products or rendering of services.
4. Responsibility towards Environment i.e. adoption of waste management techniques.
5. Responsibility towards Employees i.e. creation of a health working environment.
The business objective should not only be profit maximization but also for the wealth maximization. The above mentioned 5 responsibilities help in creating wealth maximization. All are interrelated with each other. Wealth management can be defined as the primary goal of an entity should be to maximize its market value and implies that business decision should seek to increase the net present value of the economic profits of the entity.
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