income statements—reports on Rales, expenses, and profits several times a year along with reports from auditor;? to see that the information is accurate. Corporations even post this information on the World Wide Web for everyone to examine.
Revealing this information is called transparency. The purpose of publishing this information is to provide investors with hill disclosure before they choose to invest, or continue to invest, in the company. With iull disclosure, it becomes the responsibility of the investor to choose whether the cost of the investment is worth the risk. Sometimes the managers of a corporation arc not completely honest in what tiiey say about the business. When that happens, the government can prosecute them for breaking the law. The scandal involving bankrupt energy company linron showed the damage that can be done to investors when critical financial information is not reported by auditors.
Responsibilities to Employees
Of course, businesses also have responsibilities to employees. They are required
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