Chapter 2

The Socially Responsible Enterprise: Evaluating Companies

In This Chapter

arrow Discovering how a company makes money

arrow Balancing the needs of shareholders and stakeholders

arrow Watching out for problems between principals and agents

arrow Analyzing company reports

arrow 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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