Chapter 2
The Socially Responsible Enterprise: Evaluating Companies
In This Chapter
Discovering how a company makes money
Balancing the needs of shareholders and stakeholders
Watching out for problems between principals and agents
Analyzing company reports
Making the most of conference calls, presentations, and the news
Organizations need financing to grow, and they often have to rely on outside investors to help them. That means they need to operate in ways that make investors comfortable and ensure a good return on the investment. A business that plays fair and respects all of its stakeholders (employees, customers, vendors, and the community), not just its shareholders, is likely to do well in the long run. And that's the point of social investing.
This chapter gives you the tools you need to evaluate whether a business is worthy of your investment dollars. Here you discover how a business model impacts a company's willingness to embrace socially responsible business practices, ...
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