Socially Responsible Enterprises Finance Manager Description
In “finance speaks” we typically say that the primary role of the financial manager is to maximize the value of the firm (stock price) on behalf of the stockholders who are the owners of the firm. In recent years, however, we have seen the creation of a growing number of firms that seek to provide both economic and social value, i.e. Newman’s Own, TOMS Shoes.
Economic value includes things like revenues, earnings, growth rates, market share, stock price, etc. Social value ameliorates needs such a poverty, health, hunger, education, and the environment.
Socially Responsible Enterprises Finance Manager Weekly Post
In this week’s post, I would like you to discuss a for-profit (vs. non-profit) firm that produces both economic and social value. It can be an established firm like those I have referenced above, or it can be a start-up that you are interested in. What is the firm’s product or service? Whom does it serve? How is its business model structured? How does it generate revenues? How does it measure economic value creation, i.e. stock price, revenues, profits, market share? How does it measure social value creation, i.e. number of individuals served, benefits provided such a higher graduation rates, employment, less hunger/healthier food, clean water, less pollution, lower death rates, etc. Why do you think we are seeing an increasing number of firms addressing these dual goals at the present time?
