Essay about medium sized companies-philanthropic activity

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Reference no: EM13825882

Problem:

822_Corporate Philanthrophy.jpg

The above advertisement is designed to encourage companies to donate generously to worthy health-related causes.

Consider the case of a medium-sized listed company. In your opinion, is it appropriate for the Directors to hand over shareholders' money to causes, probably unrelated to the core business of the company? Is there a risk that certain Directors might wish to enhance their personal reputations in the community through this benevolent activity? How can this risk be mitigated? Would your views be different if the company was not profitable?

Additional Information:

This question is basically belongs to the Finance as well as it explains about giving views upon medium-sized companies philanthropic activities as well as giving money to causes which might be unrelated to the company.

Reference no: EM13825882

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