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Do you think that the three financial management concepts can also be part of a concept...

Do you think that the three financial management concepts can also be part of a concept of giving back to a community? Does maximum profit also have a part in giving back to bring other people up?

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Answer #1

The concept of giving back to a community is come under the guideline of corporate social responsibility . Every corporate house is bound to give back to society in return. As the financial performance of company i.e. profit maximization , wealth maximization or any other parameters directly depend on the society and acceptance of corporate offering in the society. In simple term the profit maximization of the company depend on the sales , and sales depend on the customer acceptability . These customers are coming from society.

So, giving back to society can earn high respect for company in the society among the target customer, which has direct impact on the amount of sales, loyalty of employee towards company, attract high quality of human capital .

The three key concept of financial management have key idea to develop profit and profit with sustainability. This can be supported by concept of giving back to society.

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