Bond vigilante and Corporate social responsibility: Difference between pages

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''Risk management - central government borrowing - inflation risk - bonds.''
(CSR).


A bond vigilante is a holder of long dated central government debt that sells - or threatens to sell - their holdings as a response to increased inflation risk or credit risk.
''Corporate governance''.  


If inflation were to be higher, then the redemption value of the long dated debt would be lower, in real (inflation adjusted) terms.
A form of corporate self-regulation integrated into a business model.  


The longer dated the debt, the greater the effect on real terms values.


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.


Selling bonds in this way results in their prices falling, and the cost of borrowing for the government to rise, expressed in rises in the yields on government debt.
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.


:<span style="color:#4B0082">'''''Bond vigilantes mean business, governments better beware'''''</span>


:"The sight of Britain's new finance minister shredding up his leader's economic policies on Monday [17 October] illustrated something very clearly - bond market vigilantes are back, they are bold and governments had better pay attention.
All this means both:
 
#Adherence to existing laws and  
:It took just three weeks for markets to force the UK, the world's sixth largest economy and issuer of one of its reserve currencies, into its screeching U-turn...
#Acting in a way that is significantly better than the minimum standards required by law.
 
:'It is really not the right time to experiment with fiscal policy,' AXA chief economist Gilles Moec said about the UK's moves, assessing that Monday's U-turn may have appeased 'the bond vigilantes for now'.
 
:The term, bond vigilantes, refers to debt investors imposing fiscal discipline on profligate governments by forcing their borrowing costs higher."
 
:''Reuters - 17 October 2022.''




== See also ==
== See also ==
* [[Bond]]
* [[Business in the Community]]
* [[Credit risk]]
* [[Carbon footprint]]
* [[Fiscal policy]]
* [[Corporate governance]]
* [[Gilts]]
* [[ESG investment]]
* [[Hedging]]
* [[Ethics]]
* [[Inflation]]
* [[Fair trade]]
* [[Inflation risk]]
* [[Free trade]]
* [[Real terms]]
* [[Greenwash]]
* [[Reserve currency]]
* [[Modern Slavery Act]]
* [[Risk management]]
* [[Public interest]]
* [[Yield]]
* [[Reporting]]
 
* [[SRI]]
 
* [[Stakeholder]]
==External link==
* [[Sustainability]]
*[https://www.reuters.com/markets/europe/bond-vigilantes-mean-business-governments-better-beware-2022-10-17/ Analysis: Bond vigilantes mean business, governments better beware]
* [[Profit maximisation]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Ethics]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 11:04, 9 November 2018

(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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