Thursday, August 30, 2018

What is Public Interest Theory?

Public Interest Theory -
There has been a practice by the corporations of ignoring most of aspects relating other stakeholders and only concentrating on the financial performances. But the ignorance to the other aspects has huge cost on the society and public at large. There are huge costs relating to environment, society and other aspects that are often ignored but these needs to be taken care of properly there are some organizations that are found to be engaged in the socially responsible activities but this goes unnoticed because these efforts are not disclosed in annual reports in the same ways the financial performances are presented. So the government should come up with a regulation that makes it imperative to include the activities and costs that is borne by the environment and society to keep the organization going.

The regulations regarding the all such as the costs and benefits relating to environment, society and the efforts put by the organization in social and environment causes besides the financial performances will ensure that the organizations provide all the relevant and critical information about the activities that may have some kinds of positive or negative impact on environment, society and public at large. This practice of disclosure about the performances on the other aspect apart from the financial ones by the organizations will lead to transparency about the efforts put by the corporations and perception of the society towards same. This will help in framing required actions for environment and society causes and other public issues in a time of highly adverse conditions for the environment and society because of practices followed by the organizations that are aimed at maximizing the profits even if it requires ignoring public interests.

The exact information in the hands of the policy makers is very useful. This disclosure will provide huge insight about the damages caused by the corporations and the efforts put by them compensate for the same in the areas affected by them. This will result into right kind of policies and plans as well as the strategy to check the problems by the government and other policy making and implementing institutions. This will enable the government to prescribe right kind emission limits and efforts that are needed by the organizations to discharge their social responsibility as well as government can easily collect required capital to invest in public interest to compensate for the foregone interests.

But at the same time such mandatory regulations do have negative impact on the overall public interests. As a result these regulations the costs relating to the operations and maintenance of the books of the will increase substantially. The increased in particular industry will work as entry barriers for the new player that finally will result into monopolization of the market by the a few firms decreasing the competition substantially and as a result depriving the public from the benefits of the competitions in form lower prices, better products and services through new and innovative technologies and methodology and strategies. But the regulation may result into making it somehow impossible to enter the market for maximum of the firms; so the overall loss to the public in case of regulations. So it is advised that government should come up with such any regulations and laws that end up depriving the public that protecting their interests.

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