The US GAAP follows business entity concept according to which companies are liable for there doing and not the people who corporate them, However, the corporates are the living being who has the moral responsibility of taking care of the deeds done by the business. Hence, according to law, it is the responsibility of the business entity, but morally, the responsibility lies with individuals. These individuals have taken resources from the society and it is their liability to pay them back in the form of sustainable development, the creation of jobs, progress, CSR activities etc.
Therefore, in the eyes of the law, the business is a separate entity however its operations are conducted by individuals knows as the board of directors and it is at their discretion whether to take quality decisions or not and fulfil the moral obligations.
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