Balancing the Objectives of Corporate Governance: Social Welfare V Profitability

Abstract

Balancing social welfare issues with profitability is difficult and critical for the long-term success of a business entity. It is also difficult for managers to prioritise between the numerous competing interest of shareholders and different stakeholders. The paper examines the sphere within which businesses operates, introduces some terms common to social welfare and profitability, and investigates if any correlation exists between social issues and business profitability. The paper suggests that firms that exclude social welfare issues are doing so at their own risk.

Keywords: company, corporate governance, director, profitability, shareholders, social welfare, stakeholders

DOI: 10.7176/JLPG/83-06

Publication date:March 31^st 2019