Ethical and Social Responsibility

Introduction:

Finance is a very wide term and it can be said to be the study of the science of managing funds. Usually finance includes the areas of public finance, personal finance and business finance. It includes things related to lending, spending and saving money. Here we take a look at the importance of finance and its management. And how it affects the society if finance principles are not applied ethically.

Importance of Corporate Finance:

Corporate finance deals with financial decisions which an organization makes, whether it's investments, analysis of credit, selling of assets or products or acquiring assets. Maximizing corporate value and at the same time manage risks associated with investing in a particular product or project is the main aim of corporate finance. Moreover, corporate finance also studies the short-term and long-term implications of a decision and looks in to matters related with dividends to shareholders debt or equity. Matters related to taxes which a corporation has to pay are also taken into consideration when dealing with corporate finance.

Importance of Finance in Business:

Finance for a business can't be undervalued and can be said that it's the lifeline of a business and is required for its well being. It can be said to be a lubricant which keeps the business running. Whether you have a small, medium or large business, you will always need finance, right from the beginning to promoting and establishing your product, acquiring assets, employ people, encouraging them to work for the development of your product and create a brand name. In addition to that, a current business may need finance for expansion or making changes to its products as per the market requirements.

Importance of Finance Department in a Company

The finance department in a company is of utmost importance as they are responsible for financial planning ensuring that adequate funds are available for achieving the objectives of the...