Abstract

In a competitive market economy the corporate sector always emphasizes profit maximization, so as to enable it to stay in the business. A firm's profit is the different between its total revenue and total costs. The under laying principle of profit maximization lie at the heart of corporate activity. As an individual consumer will act rationally to maximize his own satisfaction so also a firm wants to maximize profit. To achieve this objective in a fair way there is the need for a good governance practice of the corporate sector. Very often good corporate governance (CG) refers to the good return to the supplier of finance or investors of their invested amount. This is a narrow concept of corporate governance. In the context of present neoliberal economic order, the corporate sector has to shoulder some social responsibilities in addition to their corporate functions. This social responsibility is usually performed through Corporate Social Responsibility (CSR) a part of CG and need to be practiced in an astute manner to promote the corporate interest as well as the social interest. The corporate governance has to take care of production efficiency, assets efficiency and management efficiency along with proficiency in CSR activities to remain in business without much trouble.

Key Words:-Corporate Governance, Corporate Social Responsibility, Profit Maximization, Environment, Stakeholders.