Definition of Corporate accountability:
Corporate accountability refers to a publicly traded company's performance in non-financial areas such as social responsibility and sustainability. Corporate accountability espouses that financial performance should not be a company's only important goal and that shareholders are not the only people to whom a company must be responsible; stakeholders such as employees and community members also require accountability.
The act of being accountable to the stakeholders of an organization, which may include shareholders, employees, suppliers, customers, the local community, and even the particular country(s) that the firm operates in. In most jurisdictions, a body of corporate law has been developed in order to formalize these requirements.
In conjunction with the annual financial reports that the Securities and Exchange Commission (SEC) requires corporations to produce, many publicly traded companies publish their own corporate accountability reports to satisfy demands from their shareholders and the public. Private organizations, not part of a government body, set standards for social and environmental responsibility that they expect public companies to meet and be accountable for.
How to use Corporate accountability in a sentence?
- Corporate accountability refers to a publicly traded company's performance in non-financial areas such as social responsibility and sustainability. .
- Corporate accountability holds that, beyond making a profit for its shareholders, a company must also be accountable to its employees and community members.
- The concepts of corporate accountability are important for those concerned with ethical investing.
Meaning of Corporate accountability & Corporate accountability Definition