Obligations towards owners or shareholders
In the case of sole trader ship and partnership concerns, the owners can look after their interest themselves. Where as in the case of the company, the directors have the following responsibilities towards the shareholders:
Reasonable Dividend: shareholders are a source of funds for the company. They Management and Society expect a high rate of dividend on the money invested by them and also the maximization of the value of their investment in the company.
Protection of assets: The assets of the company are purchased with shareholders funds. Therefore the company is responsible to safeguard these assets.
Information: It is the responsibility of the management to keep the shareholders informed about the financial position as well as the progress of the company.
Obligations towards Customers
Customer's satisfaction is the ultimate aim of all economic activity. Therefore, it is, theduty of management
Obligations towards Employees
Employees should be treated as human beings and their co-operation must be achieved for the realization of organizational goals. The business should fulfil the following obligations towards their employees.
Responsibility towards Suppliers
The business must create healthy relations with the supplier. Management should deal with them judiciously. They should be provided with fair terms and conditions regarding price, quality, delivery of goods and payment.
Obligations towards Government
It is the duty of every business enterprise to manage its affairs according to the laws affecting it. It should pay taxes and other dues honestly. It should not encourage corruption,black marketing and other social evils. It should discourage the tendencies of concentration of economic power and monopoly and should encourage fair trade practices.
Obligation towards Society
Every business owes an obligation to the society at large. The following are the important obligations of business towards society.
Socio-Economic Objectives: A business should not indulge in any practice which is not fair from social point of view. The business should use the factors of production effectively and efficiently for the satisfaction of the needs of the society.
Employment Opportunities: It is the responsibility of management to help increase direct and indirect employment in the area where it is functioning.
Efficient use of Resources: The resources at the command of business belongs to the society. Therefore, the business should make the best possible use of the resources at its disposal for the well being of the society.
Business Morality: The business should not indulge into anti-social and unfairtrade practices such as adulteration, hoarding and black marketing.
Improving local environment: Business should take preventive measures against water and air pollution. It can develop the surrounding area for the well being of the employees and the general public. A business can also contribute to the advancement of local amenities.
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Principles Of Management And Organisational Behaviour Tutorial
Management Science Theory And Practice
Management And Society
Functions Of Management
Human Factors And Motivation
Leadership And Group Decision Making
The Process Of Controlling
Control Techniques & Global Controlling
Attitudes, Values And Work Ethics
Perception And Learning
Foundation Of Group Behaviour
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