Asked by Jenifer Lalnunkimi on May 21, 2024
Verified
A common view in today's business climate is that the only responsibility of a business is to its shareholders, so its only purpose is to make a profit.
Shareholders
Individuals or entities that own shares in a company, giving them ownership interests and possibly influencing the company's decisions.
Profit
represents the financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.
- Recognize the broader responsibility of businesses beyond just making a profit to include stakeholders such as shareholders, employees, customers, society, and the marketplace.
Verified Answer
MJ
Megan JohnsonMay 23, 2024
Final Answer :
False
Explanation :
While maximizing shareholder value is a primary focus, businesses today are increasingly held to broader responsibilities including social, environmental, and ethical considerations, reflecting a shift towards corporate social responsibility (CSR) and sustainability.
Learning Objectives
- Recognize the broader responsibility of businesses beyond just making a profit to include stakeholders such as shareholders, employees, customers, society, and the marketplace.