W. Baumol drew attention to the fact that the dynamics of the target cash balance (TC) is similar to the dynamics of inventories and proposed a model for optimizing the target cash balance based on the Wilson model.

Assuming that:

1. The need of the enterprise for DS within a certain period (day, week, month) is known and constant;

2. Cash receipts for the same period are also known and constant, then the changes in the target balance of the DS will look like this (see Fig. 7):

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1 week 2 weeks 3 weeks Time

Rice. 7. Dynamics of the DC balance on the current account

At the end of the first week, you will either have to sell the existing securities (for the amount of the weekly demand for DC), or take a loan for the same amount. And this will have to be done every week.

Then ДСср =, where ДС - weekly (monthly, etc.) need;

ДСср - the average balance of money in the current account.

A large balance of DS reduces the costs of selling securities or servicing a loan (so-called transaction costs), but on the other hand, it also reduces the potential income from securities (since money is not moving).

The amount of these possible incomes can be conventionally taken in the amount of income generated by liquid securities. But at the same time, the availability of securities (credit) will require additional (transactional) costs.

Then the total cost (ZDSob) for maintaining the target balance of the DS will be the sum of:

Variable cost (loss of profit) (ZDSper);

Constant transaction costs (ZDSpos);

ZDSob = ZDSper + ZDSpos;

ZDSper = * r,

where ДС / 2 is the average balance of money on the current account;

r is the yield on securities.

ZDSpos = F * k,

where F is the amount of transaction costs for one cycle of replenishment of funds in the current account;

k is the number of DS replenishment cycles per year.

But we know that the annual demand for DS is equal to:

PDS = k * DS;

Hence: k =; Let's substitute the equivalent "k" in the formula for ZDSpos: ZDSpos = * F;

Or in general view: ZDSob = * r + * F;

Since we need to minimize the remainder of the DS, we differentiate the value of ZDSob by the DS and equate to zero:

R / 2 - PDS * F / DS2 = 0,

where X = DS; Y = ZDSob;

Hence: DSmin =; This is Baumol's formula.

Example: Let F = $ 150; PDS = 100 thousand dollars * 52 weeks = 5200 thousand dollars; r - 15% per annum, or 0.15; Then: DSmin = = 101980 dollars.

The average balance on the current account DSav = = 50 990 dollars, or approximately 51 thousand dollars.

The disadvantages of the Baumol model are:

1. Assumption of stability and predictability of cash flows;

2. Failure to take into account the cyclicality and seasonality of fluctuations in the demand for DS.

If you need to take into account these conditions, then you need to apply other methods for calculating the optimal value of the target balance of the DS.

Review questions

1. What is net working capital (PSC) and how is it calculated?

2. What does DFT show?

3. What determines TFP?

4. What types of working capital management policies exist?

5. What is the main issue in the process of managing accounts payable?

6. How are receivables managed?

7. How is the minimum cost of maintaining the required inventory determined?

8. What is the management of the company's funds based on?

1. The company has the following annual financial balance:

ASSETS LIABILITIES

Permanent assets 3500 Own funds 2000

Raw materials reserves 400 Reserves 1000

Unfinished production 200 Long-term owed. 2000

Goth stocks. product. 600 Short term debt. 1000

Accounts receivable. 1800 Accounts payable. 1200

Short-term financial investment 200

Others tech. assets 300

Cash 200

Total assets 7200 Total liabilities 7200

b) determine the current financial needs;

c) determine the surplus / deficit of funds and the amount of the required new loan;

2. Need for cash funds at the enterprise - 1000 thousand rubles. per month. It is expected that products shipped to consumers will be billed evenly. The annual interest rate is 20%. The cost of each operation of a loan or withdrawal of money from an account is 100 rubles.

Required:

a) determine the optimal amount of cash balance of funds;

3. The enterprise has the following characteristics activities:

Annual sales on credit - 5 million rubles.

Accounts receivable repayment period - 3 months.

Profit rate - 20%

The entity is considering a proposal for discounts of 4/10, gross 30. The maturity period is expected to be reduced to two months.

It is required to determine whether it is worth implementing such a discount policy?

4. The enterprise uses 400 units. material per month. The cost of each order is 200 thousand rubles. The cost of storing each unit of material is 10 thousand rubles.

Define:

a) what is the value of the optimal order?

b) how many orders should be placed per month?

c) how often do you need to place orders for the supply of material?

5. Sales on credit from the enterprise are 500 thousand rubles. The period of receipt of money is 90 days. The prime cost is 50% of the sales price.

It is required to determine the average investment in accounts receivable.

1 out of 9

Presentation on the topic: Social responsibility and business ethics

Slide No. 1

Slide Description:

Slide No. 2

Slide Description:

The true role of business in society At the beginning of the 20th century, the doctrine of capitalist philanthropy emerged, according to which successful organizations are obliged to donate part of their funds to the good of society. E. Carnegie invested 350 million dollars. into social programs and has built over two thousand public libraries. J.D. Rockefeller donated $ 550 million to the Rockefeller Foundation. Since the 1950s, the concept of the social role of business has begun to change. In his book Business Social Responsibility, H.R. Bowen described how the concept of social responsibility is applicable to business and what socio-economic benefits can arise from recognizing the importance of social goals in business decision making.

Slide No. 3

Slide Description:

Two points of view on the attitude of the organization to the social environment The first point of view is that an organization is socially responsible if it works with maximum profit and at the same time sacredly honors all the laws and norms of its society. According to this point of view, the organization should pursue only economic goals. A staunch supporter of this theory is the laureate Nobel Prize M. Friedman, in whose opinion "the role of business is to use resources and energy in activities designed to increase profits, while observing the rules of the game ... as well as participating in fair competition without fraud and deception."

Slide No. 4

Slide Description:

Two points of view on the attitude of the organization to the social environment According to the second point of view, the organization, in addition to obligations of a purely economic nature, must take into account human and social aspects the impact of its activities on employees, consumers and local communities and make a positive contribution to the solution social problems society. This approach also implies what society expects from modern organizations not only high economic indicators but also great success in achieving social goals. The new point of view is that the organization must act responsibly in a number of areas: in the field of environmental protection, health care, civil rights, consumer protection, etc.

Slide No. 5

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Legal responsibility of business Legal responsibility, as opposed to social responsibility, implies compliance with specific laws and regulations state regulation that define what the organization can and cannot do. An organization that complies with all laws and regulations behaves as legally responsible, but at the same time it does not always act as socially responsible.Social responsibility involves a certain degree of voluntary response of the organization to social problems.

Slide No. 6

Slide Description:

Arguments for and against social responsibility Key arguments for business social responsibility: Favorable long-term prospects for the company Changing needs and expectations of society Availability of resources to help solve social problems Moral obligation to be socially responsible

Slide No. 7

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Arguments “for” and “against” social responsibility Main arguments against business social responsibility: Violation of the principle of profit maximization Expenses related to social activities Low level of accountability to society Lack of skills for solving social problems

Slide No. 8

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Arguments for and against social responsibility Many contemporaries are of the opinion that organizations should devote part of their resources and efforts to development local communities and society as a whole. Professor L. Preston believed that each organization should, first of all, carefully analyze its environment and select such programs that will be most effective for it. Socially responsible action is not only the prerogative of large companies. Social responsibility involves more than just philanthropic activity, profit is still the most important for the survival of any company. Profitability and development go hand in hand with the firm's fair treatment of employees, customers and the local community.

Slide No. 9

Slide Description:

Ethics and modern management The subject of business ethics is the principles that determine the right and wrong approaches to doing business. Polls public opinion showed that society is convinced of lowering the standards of business ethics. According to L. Osmer, “ethical problems in business are related to the conflict, or at least to its likelihood, between indicators economic activity the organization, as measured by its income, costs and profits, and indicators of its social responsibility, which are expressed in its obligations towards other people both within the organization and in society. " In an effort to improve the ethical climate, organizations take a variety of steps: ethical codes, are engaged in social auditing and conduct trainings on ethics issues.

In works on management, the concepts of "social responsibility of enterprises" and "business ethics" are often used.

Social responsibility- implies a certain level of voluntary response to social problems from outside.

There are two different perspectives on how organizations should behave in relation to their social environment in order to be considered socially responsible.

1. The organization maximizes profits without violating laws and government regulations.
2. The organization, in addition to its responsibility of an economic nature, must take into account the human and social aspects of the impact of its business activities on workers, consumers, and also make a certain positive contribution to solving social problems in general.

The public expects from modern organizations not only high economic results, but also significant achievements in terms of social goals of society.

Social actions of enterprises that improve the lives of local people, eliminate the need for government regulation and can be used in the own interests of enterprises. In a society that is prosperous from a social point of view, the conditions for business activities are improved. with an attractive consumer image can increase profits by increasing sales. On the other hand, social spending is passed on to consumers in the form of price increases.

Ethics deals with the principles governing right and wrong behavior. For example, the actions of leaders who violate the law should be considered unethical. Actions should also be considered unethical when a businessman is in a quasi-legal space and gets the opportunity to break the law, formally being protected by other laws.

Ethical standards describe a system of shared values ​​and ethical rules that, in the organization's opinion, employees should adhere to.

Ethical standards are developed with the aim of describing the goals of the organization, creating a normal ethical atmosphere and defining ethical guidelines in decision-making processes. Some organizations set up dedicated ethics committees to evaluate day-to-day practices from an ethical perspective. Almost all of the members of such committees are senior executives.

Ethics of the leader- a system of norms of moral behavior of a leader, based on understanding and taking into account the psychology of employees, education of personality, culture of management and the ability to manage their feelings, emotions in the process of personal relationships with subordinates, higher leaders and colleagues.

The history of the development of social responsibility

The socialization of business is an objective law of a transformational society. She is directly related to current trends development of scientific and technological progress and the growth of requirements for the process and results of production, as well as with systemic transformations of property relations, with the liberalization of economic relations, processes of formation of the system social protection, with social functions of organs government controlled... Great hopes are pinned on the social role of business today.

Remark 1

In the 70s. XX century corporate social responsibility has already begun to be seen as a company's contribution to society based on its production activities, social investment, philanthropy and taking into account the priorities of state social policy.

Business social responsibility programs

As scientists emphasize, large companies become the new center of power from which society expects such fulfillment social functions, which could be compared with the volume of its resources. Among the most frequently mentioned benefits of implementing corporate social responsibility (SRS) programs for the company's image are:

1. Improving the efficiency of production processes, due to the need to find, for example, hidden levers; invention of ways to reduce emissions into the atmosphere or adapt production to technological, sanitary, environmental standards;
2. Increasing the motivation and productivity of employees, since all employees of the company are simultaneously citizens, consumers, parents and residents of a particular city, care for society, for society is translated into care for employees.
3. Psychological factors of motivation, care for employees rotate by the formation of a stable socio-psychological climate in the organization, contributes to the efficiency of work;
4. Improving the business and public reputation of a company reduces the risks of a possible loss of markets, improves access to new markets due to a better reputation of companies.

Remark 2

Improvement corporate governance helps to improve access to capital, increase revenues and drive productivity growth for the company. Investments in environmentally friendly technologies will return in the long term due to increased income.

Business ethics

IN recent times the so-called "ethical investing" has become widespread in the world. It provides that the choice of partners for cooperation is largely due to ethical motives. For example:

• the investor does not associate his activities with companies that are characterized by unfair business practices, harm society by offering low-quality or socially harmful products;
• negatively affect environment operate in unwanted areas;
• engage in activities that are morally questionable, if, for example, they cooperate with dictatorial governments, conduct experiments on animals, oppose trade unions that exploit the imperfection of the legislation of countries, developing countries.

On the other hand, they can fundamentally choose companies as partners that solve social problems and directly or indirectly benefit society, develop ethical business strategies.

A business that is focused on interacting with society is a model that has become quite popular in developed countries. On the territory of the CIS, this approach to their own business is only gaining momentum, but still moving in the direction of development.

• 1. Benefits of socially oriented entrepreneurship
• 2. Public expectations
• 3. Possible disadvantages
• 4. Social responsibility of business in Russia
• 5. What determines the ethics and social responsibility of business
• 6. Political and social factors
• 7. Public opinion
• 8. What the ethics of organizations should look like
• 9. Inevitable difficulties
• 10. Actual approaches
• 11. Conclusion

Before considering in detail such a topic as the social responsibility of business, it is worth paying attention to both the advantages and disadvantages of this model of interaction between entrepreneurs and society.

It makes sense to start with the positive edges. First of all, these are more long-term and more favorable prospects for this business format in comparison with the usual model of activity, which does not take into account the interests of society. If a particular enterprise has a noticeable positive impact on the everyday life of the inhabitants of the region in which it is located, then the loyalty of the representatives target audience grows significantly, and the brand becomes more recognizable and associated with a positive image. It is obvious that such processes are beneficial for any company.

Continuing the topic of perspective, it makes sense to pay attention to the fact that in a society that can be called prosperous, favorable conditions are created for the stable development of business. An obvious conclusion follows from this: even tangible short-term costs associated with social activity can stabilize profit growth in the future.

Another positive factor that the economic social responsibility of business implies is meeting the expectations of the general public. When businesses are involved in solving social problems, they are actually doing what the public already expects of them. In other words, the company is expected to be active, and when expectations are met, loyalty to the company again moves to a new level.

It is quite simple to explain this perception of business by the public - people always expect help from those who are able to provide it. And who can help if not entrepreneurs who own significant funds.

The change in the moral character of the enterprise can be defined as a reinforcing positive facet of the social activity of business. It is about both the perception of the company by the society, and about the change in the philosophy of the employees themselves. The enterprise, in fact, is a part of society and, therefore, cannot ignore its problems.

First of all, you need to pay attention to the fact that the principle of maximizing profit is violated. In other words, the income of the enterprise becomes less due to the constant allocation of a certain part of the funds to social projects... In order to compensate for such losses, companies raise prices, which is already a negative consequence for consumers.

The second disadvantage worth paying attention to is the insufficient level of knowledge and experience to effectively overcome social problems even with the fact of funding in the required amount. On the this moment in various organizations there are enough employees with high qualifications in the field of economics, technology and the market. But effective work with society, many of them are not trained. As a result, the company spends finances, but does not achieve its goals in the field of assistance to society.

The third negative side hidden by the process of introducing an orientation to the problems of society in business is the lack of accountability to the general public of the managers themselves and persons performing the functions of managers in the company. As a result, with competent control of the economic indicators of the enterprise, the process of social involvement does not receive due attention.

This issue has been one of the most pressing in Europe for several years now, and more and more attention is paid to it in Russia as well. At the same time, on the territory of the CIS, the process of origin and development of this phenomenon had some differences in comparison with experience. Western companies... If in Europe and the USA the degree of responsibility of business representatives to society was influenced by the society itself, then in the territory of the post-Soviet space the situation looked somewhat different. The social responsibility of business in Russia was a consequence of the initiative taken by market leaders in various segments.

As for the first steps in this field, they took place in the mid-90s. It was then that the first codes were fixed, implying the presence of a certain ethics of companies. An example is the Code of Honor for members of the Russian Guild of Realtors or the Code of Honor for Bankers.

If you look at the fact of what the social responsibility of business looks like in Russia today, you will notice that in the overwhelming majority of areas entrepreneurial activity professional codes of ethics have been adopted. And many companies are already developing them. That is, the issue of the relationship between business and society is not deprived of the attention of Russian entrepreneurs.

In order to keep the bar high, various corporate ethics commissions are organized in the above direction.

If we talk about Russia, then it is worth paying attention to such factors as the expansion of the sales market for large domestic companies. It is about trading outside the country. The result of such activities is the need to take into account the requirements of foreign partners. Those, in turn, pay attention to the fact that business transparency should be maximized.

But there are other reasons why the social responsibility of business within the CIS is constantly moving in the direction of development.

First of all, it is necessary to touch upon the peculiarities of the mentality of the CIS population and the traditions of corporate governance. These are the following factors:

Rather high social expectations against the background of low activity of the population.

An assessment of a particular employee or group of employees is not so much on productivity as on loyalty to the management.

The low degree of adequacy of the media in relation to the efforts of Russian business representatives aimed at supporting society.

Linking an employee to a specific company by providing the latest access to social institutions that belong to the organization or cooperate with it (sanatoriums, hospitals, kindergartens, etc.). At the same time, wages remain low.

The social responsibility of Russian business is still moving towards formation for reasons related to both historical and geographical factors. First of all, this is a large territory of the country and, as a result, a significant distance from each other of many settlements... Do not forget also about the fact that the bulk of the capital is concentrated in the regions, which are characterized by a low level of development and difficult climatic conditions. This is the northern part of the country, where aluminum, oil, gas and nickel are mined.

This group of processes influencing the philosophy of business in Russia deserves special attention.

This is about following features Russian life:

• a significant spread of many social problems in the regions;
• pressure from the authorities on companies regarding the allocation of those resources for various projects that are in no way connected with the interests of the company;
• tangible level of poverty in different regions;
• corruption;
• lack of the necessary state infrastructure and experience as such to overcome a number of pressing problems (an increase in the number of homeless people, drug addiction, AIDS, etc.).

If we analyze the research carried out, we can come to the conclusion that the development of social responsibility of business in Russia is not on the high level... We are talking about the opinion of the Russians themselves: 53% of those surveyed in the process of research believe that at the moment business cannot be called socially oriented. Of the top managers who participated in the polls, only 9% believe that the social responsibility of business in the CIS can stimulate an increase in competitiveness, and the corresponding reports will be a vivid demonstration of the open policy of organizations.

It is worth mentioning the fact that after analyzing more than 180 of the above reports, a rather vivid picture was formed: a large and medium business cannot boast of a dynamic development of social responsibility.

Many Russians pay attention to how social responsibility develops modern business in the post-Soviet market. And if we analyze the ideas that citizens have managed to form about the responsibility of companies to society, then we can distinguish three key positions:

• Corporate social responsibility is work aimed at overcoming various problems in society. In this case, the so-called moral consequence of wealth ownership is determined as a motive.
• According to the second position, the social responsibility of business is nothing more than the production of products, paying taxes and making a profit.
• The third position includes elements of the second, but at the same time considers the participation of companies in various social programs as a manifestation of responsibility to society.

In any case, it is obvious that the population expects from the representatives of Russian business activity in the framework of interaction with society. Such activity can be expressed in the training and retraining of personnel, the creation of new jobs, support public organizations, various initiatives, etc.

In order to clearly understand what is the ethics and social responsibility of business, you need to consider the essence of this phenomenon and the methods of its application in developed countries. This will help to more objectively assess the state of this process in Russia. Initially, the following should be noted: the focus of business representatives on interaction with society is one of the core problems in the globalization process. This confirms the fact that representatives of the so-called Club of Rome are making a lot of efforts to provide a qualitative influence on the formation of the international concept of social responsibility of business. This organization includes both European scientists and entrepreneurs.

At the same time, the main emphasis is placed on the priorities fixed in the Global Pact: these are labor legislation, environmental safety and, of course, human rights.

The very same ethics and social responsibility of business are reduced to the following concept: a corporation / company should have planned development in three interrelated aspects. It is about social programs, ensuring the profitability of the organization and caring for the environment.

It is not difficult to come to the conclusion that the principles that contain the social responsibility of business, organizations and companies should be defined as obvious and followed by them. But not everything is as simple as it might seem at first glance.

Many companies are bogged down in various strategic and technical management issues. These include the solution of the following tasks:

• periodic attempts to convince investors that new long-term investments are needed;
• maintaining as harmonious a relationship as possible with local authorities while staying away from the constant solution of complex neglected problems;
• maintaining competitiveness against the backdrop of significantly increased social costs.

Finding effective solutions for this complex of problems is not so easy. For this reason, experience and knowledge within the framework of the topic “problems of social responsibility of business” are in great demand in the post-Soviet space.

If you pay attention to the form of implementation of the responsibility of entrepreneurs to society, you will notice that it has changed significantly.

Previously, the preference was given to a strategy according to which the most priority was the correct management of the enterprise and compliance with legal regulations.

Now everything looks a little different. First of all, social responsibility is expressed in taking into account the interests of that group of society that affects the functioning of the organization and is in the zone of its influence. The consequence of this approach is to change the social contract and understand it as such. That is, in addition to employees and business owners, everything is taken into account. interested persons that in any way affect the work of the company.

Such a concept forms a vision of interaction with society that is different from that of shareholders. Even a cursory analysis reveals the practical value that such a social responsibility of business carries. Approaches that have a right to exist and are capable of producing the desired results should be designed to work with the maximum number of social groups, which implies taking into account their interests.

For example, the fact of closing an enterprise will be considered from the standpoint of benefits or losses not only of shareholders, but also of suppliers, local communities, workers and consumers. This approach is truly responsible in relation to society.

The problem of social responsibility of business in Russia is definitely a place to be. But in order to get a really decent level of interaction between companies and society, it is necessary to summarize the experience of domestic companies in this segment and conduct relevant research on an ongoing basis. In addition, it will be extremely difficult to implement the strategy of entrepreneurs' responsibility to society if the level of corruption does not decrease, moreover, it is noticeable.