Corporate Social Responsibility: A Path to Profitability
Corporate Social Responsibility: A Path to Profitability
Introduction
Indifference to growing problems affecting humanity—pollution, violence, social disorder, loss of principles and values, increased depression, and de-legitimization of established order—will lead to global catastrophe. Businesses, professionals, the state, and educational institutions must assume leadership roles to combat these issues. It’s time to rethink corporate social responsibility (CSR) in all its dimensions; failure
Read MorePost-Keynesian Economics: Kalecki, Kaldor, Minsky, Eichner, and Steindl
Kalecki: Investment and Profit
How are prices determined?
Prices are based on cost and profit margin.
How is investment financed, and what factors determine it?
Investment is financed by internal funds (retained earnings and depreciation) and external funds. Determinants of investment include:
- Internal funds
- Profit mass
- Capital stock
How is the rate of profit determined?
Large companies have greater access to lower-cost financing, leading to higher earnings and increased internal funds. This creates a disparity
Read MoreCompany Structures: Types and Organizational Models
Company Structures: Types and Organizational Models
Company
The number of partners for its formation is one or more; a single-partner company is called a one-person company. Liability is limited to the capital. A minimum of €60,101.21 is needed, with at least 25% subscribed or paid at incorporation. The company name is followed by “Company” or “SA”. It’s taxed on income tax, has legal personality, and requires a public deed before a notary and registration in the commercial register. Constituent
Read MoreProject Social Assessment: Measuring Economic Impact
Project Social Assessment
Social assessment of projects measures the real contribution of projects to a country’s economic growth. Decision-makers must consider this information to program investments for maximum impact on national output. However, social assessment cannot measure all project costs and benefits; the final decision also depends on economic, political, and social factors.
Some projects with high social returns may generate unmeasurable benefits, such as beauty, and should be carried
Read MoreBusiness Plan: Financial and Legal Viability
3. FINANCIAL VIABILITY
Business Plan Investment Elements
Once activity levels are determined and the right technology chosen, a detailed business plan is presented and each component of the economic structure is evaluated to ensure feasibility. The most common investment plan components are:
- Initial Fixed Investment:
- Tangible fixed assets: land, buildings, machinery, facilities, equipment…
- Intangible assets: patents, trademarks, software applications…
- Incorporation expenses: company creation costs,
Economic Services: Trade, Finance, Transport, and Media
Services: Consumer and Producer
Services encompass activities not directly involved in raw material transformation. They are categorized into consumer services, offered directly to individuals, and producer services, provided to businesses and public administrations. Services can be managed publicly by the state or privately by companies and organizations.
Outsourcing and Economic Development
As economies develop and basic needs are met, the demand for services increases, leading to prosperity. In
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