A business, regardless of its size, has several sets of responsibilities. Living up to these responsibilities makes the business a good employer, a good investment and a good corporate citizen. In order to understand the many different aspects of running a business, you need to develop an appreciation of the responsibilities of any business.
The obligation to pay employees is dictated by contractual agreements and state employment laws. A corporate entity does carry the responsibility to train its employees adequately for their jobs. It is the responsibility of a company to make sure that the necessary resources are available to all employees so that everyone can perform the tasks they were hired for. A company should also have a well-defined corporate structure so that employees understand who to go to when issues arise.
A company is obliged to honor the investment agreements it extends to entities in the form of stocks, bonds or sales of shares. The company also has the responsibility to generate a profit for investors and keep them up-to-date on important company developments. The company may take input from investors on operations. There should be a way, either through an annual meeting or a proxy shareholder vote, for investors to vote on the operational decisions that the company makes. Investors should also have a say as to the details surrounding the sale of the company, including who can buy the company and the financial terms of the sale.
A company must pay its vendors within the context of the payment terms outlined in all invoices. If the company is unable to pay its obligations to vendors, then the company must contact vendors and work out a satisfactory payment arrangement.
A company's responsibility to its customers includes manufacturing and distributing a quality product. There must be clear customer service options for customers that need to discuss product returns or get service on defective products. In order to create products that have value to its clients, a company needs to get input from customers on product updates and the features that should be included in new products. It is the responsibility of the company to create value for the customer with every offering. That value can be superior product quality, customer support, wide product availability or a combination of all these elements.