Corporate Social Responsibility and Sustainability Principles of Finance
Added on 2020-02-19
12 Pages2642 Words59 Views
Finance
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1Principles of FinanceName:Course Professor’s nameUniversity nameCity, StateDate of submission
2ContentsIntroduction.................................................................................................................................................3impact of financial decisions on sustainability and social responsibility.....................................................4Business Ethics............................................................................................................................................4Corporate Social Responsibility..................................................................................................................5Aveo as an investment. Considerations and recommendations....................................................................6Recommendations...................................................................................................................................7Share price history for the past 2 years........................................................................................................8Causes of fluctuations in the share price and the volumes traded................................................................9Conclusions.................................................................................................................................................9References.................................................................................................................................................11
3IntroductionThe goal of this paper is to bring to light the ramifications of their financial decisions, the corporate goals and recommendations. The purpose of this paper is to find out the importance of CSR to AVEO and why its share price has been fluctuating for the last two years (Allouche, 2006). The sources used in this paper are the company’s website, newspaper articles relating to the company and books that give insight to the topic. The conclusion suggests that the company share price has been fluctuating as a result of bad public image. It is also important to that the company engaged in CSR activities (Berk and DeMarzo, n.d.). We start from the conviction that the activity of the company must not only serve its own profitability objectives, but must also consider the impact of its activities in the environmental and social environment, supply chain, distribution, communities , etc. The company is a social agent that plays a relevant role in the environment where it operates. The strategy of a company that wants to be sustainable seeks lasting relationships of trust and reciprocal commitment to the agents involved in its activity or affected by it-stakeholders or not-and it does not only pursue economic and financial profitability - fulfill the expectations of the investors or shareholders(Cassedy, 2004). Confidence between managers, shareholders, employees, customers and suppliers is an intangible asset that generates positive synergies and adds value to the company. This is in line with other ethical principles guiding the business such as Trustworthiness, respect,fairness, caring and citizen ship.Social responsibility must be an integral part of a company's business strategy; so that it is not reduced to isolated actions of different departments but, based on the conviction of management, permeate the culture of the entire organization and integrate into different strategies, practices and management systems. It must have tools to assess the level of compliance with sustainability
4commitments and must report on the results of its internal and external management - transparency. Internal communication and dialogue with stakeholders will help redefine sustainability objectives and foster innovation and continuous improvement (Corporate Social Responsibility, Corporate Restructuring and Firm's Performance, 2010).impact of financial decisions on sustainability and social responsibilityAveo’s organizational goals are as follows; One, is profitability, the company seeks to increase its profitability. Second, is to increase its market share, third, is to improve its productivity and lastly is to be socially responsible.Aveo should invest in mending the relationships with its customers, in addition to pursuing profitability and applying the traditional investment criteria, meet environmental, social and good governance criteria, to improve sustainability (Dalton, 2013). They are the ethical funds-investment in companies that fulfill requirements related to corporate social responsibility- and solidary investment funds -funding of social or development projects and microcredit. However, it is not right the company treats the vulnerable in a wrong manner and expect the profits to rise.Its products are not conditioned solely by criteria of speculation in the financial markets, nor do they seek only the maximum profit(Shaw, 2017).Business EthicsTransparency is also a fundamental tool to maintain credibility and trust in ethical business. In fact, they offer broad access to information on beneficiary projects. The shareholder activism or active participation in the meetings of shareholders of companies, to maintain a dialogue with themanagement team in order to improve the ethical practices of the company.
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