What is accountability in management?

The administration activity generates certain risks, therefore, it can cause unintended damages on individuals, to cover these damages a principle of management responsibility based on the care of the consequences of the rule of law, which imposes the submission of the Administration to the legal system. Which also constitutes one of the fundamental pillars of Administrative Law, as a guaranteeing right.

The admission of the responsibility of the public administration, implies the damage caused in the finances of the public entities and certain obligations and compensation to individuals derive from it.

Regarding the administrative responsibility of companies, it is nothing more than the obligation that the entity has towards the elements of its environment.

The administrative responsibility of companies focuses on social responsibility, that is, in fulfilling in the best possible way its economic mission (produce goods and services) to satisfy the needs of a society, limiting itself to complying with the laws and ensuring economic performance to its owners. On the other hand, companies benefit from the society where they are inserted, this benefit must be returned to society itself either by providing sources of work, natural and financial resources, payment of taxes that benefit society, among others.

Social responsibility of the administration.

It is the ability of an organization to adapt its decisions to those changes that occur in social conditions for the benefit of society, Therefore, the Obligations that it contemplates transcend economic and legal limits, incorporates ethics and morals to take into account what is correct and incorrect.

This responsibility can be covered from the following points of view:

Classic

The only social responsibility of the management lies in extending the profits and profits of the company, ensuring its long-term survival.

Socio-economic

The social responsibility of the administration covers more than the simple achievement of profits, it seeks to protect and improve the welfare of society.

It transcends profit making and includes consumer protection. Commercial organizations cannot be considered and treated only as economic institutions, society also expects social and political actions.

Starting from the social responsibility of the administration, the administrative responsibility as "The responsibility that arises from the commission of an administrative breach, of who exercises directive positions in an organization either public or private." There is administrative responsibility for any loss or damage caused to third parties by the action or omission of certain administrative acts.

The current significance of it comes from the change in the way of seeing the company and the broadening of citizen expectations regarding it. This phenomenon involves the participation of public powers in the process, stimulating and controlling good practice by companies. With which responsible behavior is provided in the private sector and promotes social responsibility in the public sphere.

The growing expansion of companies' activities means that they include new commitments in favor of consumers, their prestige and image lead it to pay greater interest in the development and modernization of its activities and consequently its competitiveness. These companies are regulated through regulations and standards conferred by the legislature.

Obligations and responsibilities in the administration

The companies are made up of an administrative body that ensures the efficiency of the performance of all activities within the organization and has a responsibility to look after the interests of the company, seeking the consequences that these Business actions may have on society in general or certain groups in particular and have the obligation to act responsibly.

Administrative responsibility It is typical of those who hold management positions, who make decisions that could cause harm.

The administrator of the company is the person in charge of performing various administrative functions including the completion of the annual accounts for the closing of the accounting year. Companies are required by law to have an administrator who follows the principles of truthfulness and transparency with the information offered by the company. The culpable breach of said, that produces real damages or illicit enrichment, generates commercial, fiscal, civil and penal responsibilities.