Financial Analysis Corporate Social Responsibility

Question: Discuss about the Financial Analysis for Corporate Social Responsibility. Answer: Introduction The Suncorp group is an Australian company which serves the customers with financial services and insurance products and services (Suncrop, 2015). This company does not only aim at a maximising profit but also fulfills its social responsibilities efficiently. It has fulfilled its responsibilities towards the customers, employees as well as the workplace. Corporate Social Responsibility The company has created a greater value of customers. It has created a team which would help the customers to resolve the issues at the time of any natural disaster. They have made much advancement in the mobile technologies so that the customers do not get troubled while fulfilling their needs. It has also served its employees well and so they provide a safe environment for work where they can perform their best. The employees have a flexible workplace as they can do part time or they can also work from home. It also trains their employees and gives them of personal development through training programs, different types of projects, E-Learning etc. The company has fulfilled lots of responsibilities towards the community. They have provided many recycle bins in the offices. It has also promoted road safety training and has created awareness about the rules and regulations that the drivers must follow (Suncrop, 2015). How CSR impact the financial performance The corporate social responsibility has led to the better financial performance of the company. The company (group NPAT) had earned high profits in the year 2015-16 which was $1038 million. It has merged the office space so that the hazardous impact on the environment is reduced. The company has contributed $8.8 million toward the community projects (Suncrop, 2015). It was a great achievement for the company to earn such profits during the year when the there was a huge volatility in the global markets. It was very difficult to achieve such profits when there was a lower Australian dollar (Kruger, 2015). So, it is very clear that the social responsibilities of the company paid off because it could maintain its performance standard even in such unavoidable situations. The Suncorp bank has to undergo certain transformation programs and it also upgraded its core banking solution but these cold not affect the profits of the company. The company continued to maintain its consistency and h ad stronger earning (Profit after tax). There were so many situations which could affect the companys financial performance but this could not stop the general insurance company (a special division run by the company) from earning profits of $624 million. As there are so many external issues still the company has managed to perform excellently well we can conclude that the reputation and all the social works done by the company have paid off. Although there were so many problems and difficult situations such as global market violations the trust which the company has built encouraged the stakeholders to invest in the company (Ballot et. al, 2006). The annual report of the company acts as an evidence to prove the fact that the company has maintained its standard in the market and no situation could harm the company in any way. Conclusion It has proved it to be a great contributor to the society which is a very important thing every company needs to possess in order to survive in the long run. The maintained the consistency of performing well and are still continuing to fulfill as many social obligations as they can so that they could make a progress in the future. Overall, it can be commented that Suncorp has defined itself as an integrated organization that is customer oriented and the entire group has contributed the best possible solution. It is one of the major reasons for the smooth functioning of the company. Further, the contribution towards environment and community is praiseworthy. References Albuquerque, R., Durnev, A., Koskinen, Y 2013, Corporate social responsibility and firm risk: theory and empirical evidence, Boston University. Ballot, B., Heitger, D. L. Landes, C. E. 2006, The future of corporate sustainability reporting: A rapidly growing assurance opportunity, Journal of Accountancy, vol. 20, pp. 65-74 Kruger, P 2015, Corporate goodness and shareholder wealth, Journal of Financial economics, pp. 304-329 Suncrop 2015, Suncrop Annual report 2015, viewed 8 December 2017, https://www.annualreports.com/HostedData/AnnualReports/PDF/ASX_SUN_2015.pdf