Which of the following is implied by the 'shareholder primacy' view of corporate reporting?
A) Regulators should mandate greater social and environmental reporting.
B) Reporting should primarily meet the needs of those with a financial stake in the organisation.
C) Organisations will voluntarily adopt greater social and environmental reporting.
D) All of the given options are correct.

Question

Quizplus · Accepted Answer

Shareholder primacy view of corporate reporting suggests that the primary purpose of reporting is to meet the needs of those who have a financial stake in the organization, i.e., shareholders. Hence, the option B is correct, and the other options are not implied by this view.

Which of the Following Is Implied by the 'Shareholder Primacy