Question

"Business has to take into account the expectations of various stakeholders,like the workers,the consumers,the government and the community." Comment on this statement with the explanation of Social Responsibilities of business (two points each).

Answer 1

Different stakeholders have different interests and thus the accountant must prepare results in such a way that all the users of the accounting ascertained results could be used.As the business firms have a social responsibility towards the internal and external users of the information the management should ensure that the accounting results have been reached out to the users accessibility on time for their further investments for the next accounting period to be encouraged.A management should always try to get a high rate of profit for the business as more investors may get attracted when more profit is earned.But only those profits which is earned should be shown as their is a certain percentage of tax collected by the government on the amount of profit earned that year.