The 'shareholder primacy' view of corporate reporting implies that:
A) Regulators should mandate greater social and environmental reporting
B) Reporting should primarily meet the needs of those with a financial stake in the organisation
C) Organisations will voluntarily adopt greater social and environmental reporting
D) All of the given options are correct

Question

Quizplus · Accepted Answer

The 'shareholder primacy' view of corporate reporting suggests that reporting should primarily serve the financial interests of those who have invested in the organization. This view prioritizes maximizing shareholder value and profit above any social or environmental concerns. Therefore, the answer is B. Options A and C are not consistent with the shareholder primacy view, and D is incorrect since only option B is correct.

The 'Shareholder Primacy' View of Corporate Reporting Implies That