Factors Contributing to Success

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Factors contributing to success
Success of a company has for long time been associated with shareholder value and profit maximization. Today, companies’ success is significantly determined by maximizing on the common good to the society, minimization of social injustice and impact on the environment. Firms and companies believe and acknowledge that government and the society as a whole form the pillars of business. This has propelled them to work on building lasting institutions, as well as the people and society at large. Institutions believe companies are more important than just generating profits; they are vehicles that can drive societal goals through improving livelihoods of citizens working in them. The value of companies is measured in terms of how it manages to sustain the conditions that keep them flourishing over time. Building institutions and livelihood of people can significantly determine the sustainability of a company in the business.
Ethical policies add significant value to a brand. Companies that have adopted ethical approach have realized indispensable benefits. Information on social, ethical and environmental performance is important when it comes to monitoring the social and environmental impacts brought about by a company. The information helps compile reports to show effective governance. Corporate reports and communication provides evidence of the positive impact of the company’s business on the society and how the negative effects are addressed. Finance managers and accountants have the role of promoting ethics that do not encourage practices like corr...