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Business Studies · Ch 6 — Social Responsibilities of Business and Business Ethics

Responsibility towards the shareholders or owners

6.5.1

Responsibility towards the shareholders or owners

Responsibility towards the shareholders or owners:

  • A business enterprise must provide a fair return to its shareholders or owners on the capital they have invested.
  • It must ensure the safety of that investment.
  • Where the business is a company form of organisation, it must also give shareholders regular, accurate and full information about how the enterprise is working, as well as its schemes for future growth. …