Responsibility of Management

Question 1

Responsibility of management to Owners/Stakeholders

Answer 1

Maximize Shareholder Value: Management has a duty to increase shareholder wealth by making strategic decisions that improve financial performance and ensure long-term success.
Transparency and Accountability: Management must maintain honest financial reporting, follow governance standards, and take responsibility for their actions.

Question 2

Responsibilities of management to Employees

Answer 2

1. Provide Safe and Healthy Work Environment: Management must ensure workplace safety and health by implementing proper policies, procedures, and training.
2. Fair Treatment: Management should treat all employees fairly, offering opportunities for advancement, fair pay, and a supportive environment.
3. Employee Development: Management must invest in training and development to improve skills, encourage career growth, and promote employee retention.

Question 3

Responsibilities of management to Customers

Answer 3

Responsibility to Customers:

Quality Products/Services: Management must ensure that products or services meet high-quality standards and satisfy customer needs.

Customer Service: Management should prioritize excellent customer service, promptly addressing inquiries, complaints, and feedback.

Honesty and Transparency: Management must be honest and transparent with customers, providing accurate information and maintaining ethical practices.

Question 4

Responsibilities of management to Society

Answer 4

Responsibility to Society:

Corporate Social Responsibility (CSR): Management should consider the social, environmental, and ethical impacts of their operations, working to reduce harm and contribute positively to society.

Environmental Stewardship: Management must adopt sustainable practices, reduce carbon footprints, and minimize pollution and waste.

Community Engagement: Management should engage with local communities, support charitable efforts, and contribute to community development and welfare.

Question 5

Responsibilities of management to Government

Answer 5

Responsibility to Government:

Regulatory Compliance: Management must comply with all relevant laws, regulations, and government requirements applicable to their industry and business operations.

Tax Compliance: Management is responsible for fulfilling tax obligations, accurately reporting income, and paying taxes in accordance with tax laws and regulations.

Cooperation with Authorities: Management should cooperate with government agencies, providing information and assistance as required for regulatory compliance, investigations, or audits.