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QUESTION

"NAPF believes it is inconceivable that, in the long run, a company can enhance shareholder value unless it takes good care to retain and develop its...

"NAPF believes it is inconceivable that, in the long run, a company can enhance shareholder value unless it takes good care to retain and develop its customer relationships; unless it provides encouragement to its employees; unless it develops effective relationships with its suppliers.....; unless it pays proper attention to preserving its 'licence to operate' from the community"

National Association of Pension Funds, Guidance on Good Corporate Governance (1996)

Critically analyse this statement with particular relevance to corporate governance theory and principles of corporate social responsibility.

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