Corporate financial management and Corporate social responsibility: Difference between pages

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imported>Charles Cresswell
(Created page with "==Corporate finance== Corporate finance theory (risk/reward) is applied in practice to evaluate sources and uses of finance. This encompasses everything from capital structur...")
 
imported>Doug Williamson
(Add alternative names - source - Novisto - https://novisto.com/esg-glossary/)
 
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==Corporate finance==
''Corporate governance''.


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).
(CSR).


==Long term funding==
Corporate social responsibility is a form of corporate self-regulation integrated into a business model.


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.
It includes the acceptance by commercial organisations that they have wider ranging and longer term responsibilities, beyond the short and medium term financial interests of financial stakeholders.




==Investment==
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.


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.
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.  


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


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.
 
All this means both:
#Adherence to existing laws and
#Acting in a way that is significantly better than the minimum standards required by law.
 
 
Corporate social responsibility is also sometimes known as ''corporate responsibility'' or ''corporate citizenship''.
 
 
== See also ==
* [[Business & Human Rights Resource Centre]]
* [[Business in the Community]]
* [[Carbon footprint]]
* [[Corporate governance]]
* [[ESG investment]]
* [[ESG ratings]]
* [[Ethics]]
* [[Fair trade]]
* [[Free trade]]
* [[Green equity]]
* [[Greenwash]]
* [[Modern Slavery Act]]
* [[Profit maximisation]]
* [[Public interest]]
* [[Reporting]]
* [[Self-regulation]]
* [[SRI]]
* [[Stakeholder]]
* [[Sustainability]]
* [[Sustainability Linked Loan Principles]]
* [[Total Societal Impact]]
 
[[Category:Corporate_finance]]
[[Category:Ethics]]

Revision as of 11:19, 5 December 2021

Corporate governance.

(CSR).

Corporate social responsibility is a form of corporate self-regulation integrated into a business model.

It includes the acceptance by commercial organisations that they have wider ranging and longer term responsibilities, beyond the short and medium term financial interests of financial stakeholders.


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.


Corporate social responsibility is also sometimes known as corporate responsibility or corporate citizenship.


See also

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