Corporate Social Responsibility

Read this section, paying particular attention to the sections on communities, financial contributions, volunteerism, and supporting local causes to learn more about the positive impact of businesses.

Fiduciary Responsibilities

Finally, managers have a fiduciary responsibility to owners: They're responsible for safeguarding the company's assets and handling its funds in a trustworthy manner. This is a responsibility that was ignored by top executives at both Adelphia and Tyco, whose associates and families virtually looted company assets. To enforce managers' fiduciary responsibilities for a firm's financial statements and accounting records, the Sarbanes-Oxley Act of 2002 requires CEOs and CFOs to attest to their accuracy. The law also imposes penalties on corporate officers, auditors, board members, and any others who commit fraud.