Social responsibility of a business towards investors.
When a company needs additional capital it raises it from investors. These investors could be banks, preference or debenture share-holders, etc. social responsibilities towards these investors are as follows:
1. Timely payment of good returns:
Investors invest with an expectation of high returns at regular interval or a present time. Thus it is the social responsibility of the business unit to pay good returns to investors regularly.
2. Provide necessary information:
It is the responsibility of the business unit to inform its current position and future plans to the investors.’
3. Provide growth to the invested value:
Better the financial results of the unit better will be the market value of the funds invested in the company. So, a unit should take such decisions which gives growth to the investment of investors.
4. Security of money:
Investors invest their money in the business unit believing that the company will work efficiently and deliver good returns. It is the social responsibility of the business to make proper use of investor’s money so that it remains safe and grows. This will also help company to borrow more money from investors in future.
5. Welcome suggestions:
Generally, the investors who invest their money are aware of the market trends. So, the business units should welcome the suggestions of investors and try and use them for betterment of the company.
