For financial managers to be socially responsible, it is necessary that they:
A) focus solely on the shortterm performances of the firm.
B) make a longterm commitment to the needs of stakeholders.
C) focus on maximum utilization of human resources.
D) allot 10% of company's profit to employee welfare.

Question

For financial managers to be socially responsible, it is necessary that they:
A) focus solely on the short­term performances of the firm.
B) make a long­term commitment to the needs of stakeholders.
C) focus on maximum utilization of human resources.
D) allot 10% of company's profit to employee welfare.

Quizplus · Accepted Answer

Being socially responsible means taking into account the impact of business decisions on stakeholders, including employees, customers, communities, and the environment. Making a long-term commitment to the needs of these stakeholders, rather than focusing solely on short-term performance, is essential for financial managers to be socially responsible. Maximizing the utilization of human resources and allocating a portion of profits to employee welfare may be important steps in achieving social responsibility, but they should be part of a larger, sustained effort to balance financial goals with broader social and environmental goals.

For Financial Managers to Be Socially Responsible, It Is Necessary