Corporate financial management and Corporate social responsibility: Difference between pages

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(CSR).


''Corporate governance''.


== Overview of corporate financial management ==
A form of corporate self-regulation integrated into a business model.
Corporate financial management responsibilities include:
*Corporate finance
*Long-term funding
*Investment and
*Intercompany funding




Each of these responsibilities is a core technical competency for treasurers, as identified by the ACT's Competency Framework.
Ideally, CSR policy is a built-in, self-regulating mechanism where the business or other organisation  monitors and ensures its adherence to law, ethical standards, and international norms.  


They are each discussed in more detail below.
The organisation embraces responsibility for the impact of its activities on the environment, consumers, employees, communities, other stakeholders and all other members of the public sphere.  


The organisation also proactively promotes the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere.


==Corporate finance==


Corporate finance theory (risk/reward) is applied in practice to evaluate sources and uses of finance. This encompasses everything from capital structure (debt, equity and dividend policy), through major business transformations (e.g. mergers and acquisitions) to individual financing decisions (e.g. whether to buy a particular machine).
All this means both:
 
#Adherence to existing laws and  
 
#Acting in a way that is significantly better than the minimum standards required by law.
==Long-term funding==
 
The success of the organisation is dependent on access to funds. Identification of the most appropriate sources of funding to achieve the organisation's medium / long term objectives and putting funding solutions (including documentation) in place will ensure that funding is available whenever required.
 
 
==Investment==
 
Treasury needs to be prepared to handle cash surpluses as well as borrowing requirements. A financial investment strategy (based on security, liquidity and yield) that is consistent both with the needs of the business and with its risk appetite, should be in place as well as methodology to monitor the creditworthiness of investment counterparties.
 
 
==Intercompany funding==
 
Intercompany funding of subsidiary operations is generally an efficient source of funds for an organisation. It may not be straight forward to implement or manage, as tax, legal and regulatory aspects must all be taken into account especially when setting up intercompany structures such as netting systems, In House Banks etc.




== See also ==
== See also ==
* [[Corporate finance]]
* [[Business in the Community]]
* [[Financial management]]
* [[Carbon footprint]]
* [[ACT Competency Framework]]
* [[Corporate governance]]
* [[In-house bank]]
* [[ESG investment]]
* [[Technical skills]]
* [[Ethics]]
* [[Fair trade]]
* [[Free trade]]
* [[Greenwash]]
* [[Modern Slavery Act]]
* [[Profit maximisation]]
* [[Public interest]]
* [[Reporting]]
* [[SRI]]
* [[Stakeholder]]
* [[Sustainability]]
* [[Sustainability Linked Loan Principles]]


[[Category:Financial_management]]
[[Category:Corporate_financial_management]]
[[Category:Corporate_finance]]
[[Category:Corporate_finance]]
[[Category:Ethics]]

Revision as of 13:36, 17 September 2019

(CSR).

Corporate governance.

A form of corporate self-regulation integrated into a business model.


Ideally, CSR policy is a built-in, self-regulating mechanism where the business or other organisation monitors and ensures its adherence to law, ethical standards, and international norms.

The organisation embraces responsibility for the impact of its activities on the environment, consumers, employees, communities, other stakeholders and all other members of the public sphere.

The organisation also proactively promotes the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere.


All this means both:

  1. Adherence to existing laws and
  2. Acting in a way that is significantly better than the minimum standards required by law.


See also

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