Impacts of Shareholders Interests

Impacts of Shareholders Interests Student’s Name Institutional Affiliation Impacts of Shareholders Interests Corporate bodies are funded by the investors who become the shareholders of the businesses that they invest in. Shareholders make considerably high investments in organizations by injecting capital to finance various operations. In return, these shareholders expect that these companies should pay them in terms of the profits and the dividends. It is, therefore, the primary responsibility of the corporates to work on the profit maximization so that they can give back the return on investment to the shareholders. For a long time, corporates have been working and focusing their energy so that they can meet the shareholder's expectations. In the process of meeting their obligations, corporate managers have found themselves, exploiting the environment and the members of the community. From such activities, it is evident that overly focusing on shareholders’ interests may produce severe problems and adverse outcomes for the environment and the local community. The corporate social responsibility requires the corporates to adopt the production methods that are sustainable to the business in terms of the social, the environmental and the economic demands. The social needs in a corporate organization ensure that the employees get better and competitive wages, salaries, and employment benefits which help them to live a quality life and support their families and society at large. Also, the corporate organization should provide the best working conditions for their employees, such as instituting measures that aim at giving the employees’ safety. These measures include setting up the buildings and production spaces that are well ventilated and spacious. Corporations should also aim at maintaining and improving environmental sustainability. The sustainability should aim at conserving the environment and preserving the exhaustible natural resources such as fossil fuel, and natural gases. Additionally, the protection of animal life should come handy when making organizational decisions, particularly those that affect the environment, the natural habitat for the wildlife. Therefore, ensuring that the environment is conserved is a primary responsibility of the corporate organizations that should be upheld at all times. In addition to social and environmental demands, organizations face economic demands which are mainly driven by the needs of the shareholders to get their profits and interest. Due to the shareholders demands of satisfying their investments, most corporate organizations are faced with a challenge to achieve the triple bottom approach requirements all at the sam...