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Trusteeship concept in business ethics

Abheer (student) (217 Points)

24 July 2013

What is the trusteeship concept in business ethics? How is it important?

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CA SURENDRA KUMAR RAKHECHA (Practising CA at Surat) (26258 Points)
Replied 24 July 2013

Gandhiji told such words to J L Bajaj.

Trusteeship means you are not the owner of the business empire. You are running the business keeping the mind the interests of various stakeholders i.e. shareholders, bankers and lenders, employees, public affecting from pollution due to running of industries, government's share of taxes etc.

As the businessmen were not taking care such issues (taking care of interests of stakeholders); CORPORATE SOCIAL RESPONSIBILITIES, CORPORATE GOVERNANCE etc. have been LODGED on them by LAW.