Social responsibility - objectives of business entity, Finance Basics

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Social responsibility - Objectives of Business Entity

The firm must decide where to operate strictly in their shareholders' best interests or be responsible to their staff, their customers, and the community whether they operate. The firm may be included in activities that do not directly benefit the shareholders, although which will develop the business environment. This has a long term benefit to the firm and consequently in the long term the shareholders wealth may be maximized.

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