Critically discuss whether the concept of corporate social responsibility is fundamentally inconsistent with the maximisation of shareholder wealth.

Managers finance.

You are required to prepare a report which:

Part A – Evaluates the financial performance of an allocated company.

Part B – Discusses other key issues in relation to the financial management of your company.

Details in relation to Part A and Part B can be found below.

Requirements –

You are required to answer the questions below regarding a company from the FTSE 250 index. Your company will be allocated to you in week 3 of Semester 1. You should then obtain a copy of the company’s latest Financial Statements, refer to the company’s website and carry out further research to support your analysis. Your report should include a references section.

Part A

(1) Set the company context and summarise the history of the company including any significant developments during the past four years.

(2) Analyse and evaluate the profitability of the company over the past four years.

(3) Analyse and evaluate the efficiency of the company over the past four years.

(4) Analyse and evaluate the liquidity of the company over the past four years.

(5) Analyse and evaluate the gearing of the company over the past four years.

(6) Analyse and evaluate the investment performance of the company over the past four years.

Attach relevant extracts from your company’s financial statements to your report as Appendix 1.

Attach your full workings for all calculations in relation to the above questions in Appendix 2.

The appendices will not contribute to the word count.

Part B

Consider that your company is looking to invest in a significant capital project. Critically evaluate three different investment appraisal techniques that could be used.

Give two examples of the way in which your company demonstrates its commitment to principles of Corporate Social Responsibility (CSR) in its annual report.

Critically discuss whether the concept of corporate social responsibility is fundamentally inconsistent with the maximisation of shareholder wealth.

 

Critically discuss whether the concept of corporate social responsibility is fundamentally inconsistent with the maximisation of shareholder wealth.
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