Michael Mainelli

Financial decision theory has attempted to put finance forward, with some success, as a meta-decision framework for organizations, encompassing alternative financing and debt/equity trade-offs (Capital Asset Pricing Model), shareholder value added (hurdle rates, risk-adjusted return on capital), time cost of money (Net Present Value) and volatility (risk/reward options). Finance provides a single ‘currency’ for corporate decisions. Can this financial model be reconciled with social responsibility decisions?

Like this content? Why not share it?