Question

What must boards of directors ensure regarding social responsibility?

• A. The company's profit margins
• B. The rights of customers, employees, shareholders, suppliers, and local communities
• C. Compliance with environmental regulations only
• D. The personal interests of the CEO

Answer 1

Answer:

B. The rights of customers, employees, shareholders, suppliers, and local communities

• Social Obligation: In today's business world, a company's success is not just measured by profit. Companies have a social obligation to act ethically and consider the impact of their decisions on all stakeholders.

• Broad Responsibility: This responsibility extends beyond just shareholders. Boards must ensure fair treatment for employees, deliver quality and value to customers, maintain ethical relationships with suppliers, and act as a positive force in their local communities.

• E-governance: This can only be achieved effectively by utilizing modern e-governance tools, which provide the transparency and accountability needed to manage these diverse responsibilities.