The role of investors for business can hardly be overestimated. For large companies, the opinion of investors can dramatically change the destiny of the company, and major stockholders can participate in the company’s decision-making processes. The loyalty of long-term investors is thus one of the key factors affecting financial stability of most large companies (McElhaney, 2008). On the other hand, investors are also interested in long-term effective relationships with the companies, and as the initial choice for cooperation is made by the investors, they are more likely to cooperate with businesses which adhere to the idea of corporate citizenship. Thus, the practices of corporate social responsibility and compliance with ethical and legal standards are beneficial both for the companies and for investors, and should be adopted by all business entities interested in long-term financial growth and success.
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McAlister, D.T. & Ferrell, O.C. & Thorne, D. & Ferrell, L. (2002). Business and society: a strategic approach to corporate citizenship. Houghton Mifflin.
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