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Capital Market Corporate social responsibility initiatives are standards

and measures that businesses put in place to benefit


Is an organized market mechanism for effective and
society. Generally speaking, these initiatives are based
efficient transfer of money capital or financial resources
on sustainability in four different categories of CSR
from investing class to the entrepreneur class in the
private and public sectors of the company.

 It is only with the help of capital market, long Environmental Sustainability Initiatives
term funds are raised by the business
enacted by businesses generally focus on two main
community.
areas: limiting pollution and reducing greenhouse
 It provides opportunity for the public to invest
gases. As the awareness of environmental issues
their savings in attractive securities which
grows, businesses that take steps to reduce air, land
provide a higher return.
and water pollution can increase their standing as
 A well develop capital market is capable of
good corporate citizens while also benefiting society as
attracting funds even from foreign country.
a whole.
 Capital market provides an opportunity for the
investing public to know the trend of different Direct Philanthropic Giving
securities and the conditions prevailing in the
company. Philanthropic initiatives include the donation of time,
money or resources to charities and organizations at
 It enables the country to achieve economic
local, national or international levels. These donations
growth as capital formation is promoted
can be directed to a variety of worthy causes including
through the capital market.
human rights, national disaster relief, clean water and
 Is the barometer of the economy by which you
are able to study the economic conditions of education programs in underdeveloped countries .
the country and it enables the government to
Ethical Business Practices
take suitable action.
The primary focus on ethics is to provide fair labor
 Provides opportunities for different institutions
practices for businesses’ employees as well as the
such as commercial banks, mutual funds,
employees of their suppliers. Fair business practices
investment trust; etc. to earn a good return on
for employees include equal pay for equal work and
the investing funds.
living wage compensation initiatives .

Focus on Economic Responsibility


Government
Economic responsibility focuses on practices that
Government is a group that governs a community or
facilitate the long-term growth of the business, while
unit. It sets and administers public policy and exercise
also meeting the standards set for ethical,
executive. Political sovereign power through custom,
environmental and philanthropic practices.
institutions, and laws within the state.

Future of Governance innovative practices


Corporate Social Responsibility (CSR)
It is how companies manage their business processes to Governance Innovation, the term ‘governance’ entails a
produce an overall positive impact on society. It covers dimension which refers to the complexity of decision-
sustainability, social impact and ethics, and done making processes in contemporary political, social and
correctly should be about core business - how economic affairs. This idea of governance presupposes a
companies make their money - not just add-on extras fragmentation and diffusion of authority among a
such as philanthropy diversity of organizations.

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