Responsibility of Management

Question 1

Responsibility of management to Owners

Answer 1

Responsibility to Owners/Shareholders:

Maximize Shareholder Value: Management has a fiduciary duty to maximize shareholder wealth by making strategic decisions that enhance the company’s financial performance and long-term sustainability.
Transparency and Accountability: Management must provide transparent and accurate financial reporting, adhere to corporate governance standards, and ensure accountability for their actions.

Question 2

Responsibilities of management to Employees

Answer 2

Responsibility to Employees:

Provide Safe and Healthy Work Environment: Management is responsible for ensuring workplace safety and health by implementing appropriate policies, procedures, and training programs.

Fair Treatment: Management must treat employees fairly and equitably, providing opportunities for advancement, fair compensation, and a supportive work environment.

Employee Development: Management should invest in employee training and development to enhance skills, promote career growth, and foster employee engagement and 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 and expectations.

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

Honesty and Transparency: Management must be honest and transparent in their dealings with customers, providing accurate information and upholding ethical business 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 business operations and take actions to minimize negative effects and contribute positively to society.

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

Community Engagement: Management should actively engage with local communities, support charitable initiatives, 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.