Finance Report: Analysis of Aetna's Financial Performance

This report provides an analysis of Aetna's financial performance, examining the separation between management and ownership and their impact on the corporation. It explores potential conflicts of interest, the company's interaction with financial markets, and its commitment to corporate social responsibility (CSR) and sustainability. The report highlights Aetna's efforts in reducing emissions, utilizing renewable energy, and promoting green business practices, while acknowledging the challenges in directly assessing the financial impact of these initiatives. The analysis references key financial management principles and applications, offering insights into Aetna's strategies and practices. The report also investigates Aetna's commitment to sustainable practices, which include reducing energy consumption and promoting environmental strategies both nationally and internationally. Overall, the report assesses the company's dedication to sustainable exercises, which are likely to influence the firm’s finances, even if it is too early to assess what that impact might possibly be.

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Finance
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Authors’ Note

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Solution
1- Examination of separation between management and ownership and responsive of
management to stockholders
- No, there is a separation between firm’s management and ownership. This permits
them to have significant impact on the way the corporation is operated (Gitman et al.
2015)
2- Other potential conflicts of interest that can be seen in Aetna
- I did not discover probable conflicts of interests, namely dual position of Aetna and
viewpoint of CEO on particularly compensation committee or audit committee.
3- Firm’s interaction with financial markets
- The company interacts with various financial markets by means of web page with a
section on investor relations.
4- Firm’s commitment to corporate social responsibility and sustainability
- The products as well as services of Aetna necessarily have immediate influence on the
environment; nevertheless, the corporation is actively working with firm’s clientele,
governments as well as NGOs on firm’s CSR along with CS programs. The firm
Aetna is also committed to shield valuable resources by decreasing emissions,
recycling and utilizing renewable energy (Titman et al. 2017). In addition to this, the
company has solar fields situated in Hartford, Windsor, Middletown and Conn
manufactured 2.33 million kWh on own. Furthermore, Aetna lessened energy
consumption and developed green buildings (McKinney 2015). Also, the firm also
helped suppliers to go green for enhancing green business exercises. The company

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has a statement on environmental strategy that comprises of promotion of sustainable
exercises both nationally as well as internationally. Therefore, Aetna can be highly
rated for their sustainability practices.
5- Firm’s commitment to CSR and CS that impacted its financial performance and
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- I could not find any data to assess the influence of CSR along with CS on firm’s
financial performance. Essentially, the commitment of the company to undertake
sustainable practices shall necessarily have an influence on the firm’s finances;
however, it is perhaps too early to assess what that impact might possibly be (Petty et
al. 2015).

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References
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
McKinney, J.B., 2015. Effective financial management in public and nonprofit agencies.
ABC-CLIO.
Petty, J.W., Titman, S., Keown, A.J., Martin, P., Martin, J.D. and Burrow, M.,
2015. Financial management: Principles and applications. Pearson Higher Education AU.
Titman, S., Keown, A.J. and Martin, J.D., 2017. Financial management: Principles and
applications. Pearson.