Who Decides on What to Spend in CSR? Moving from Compulsion to Consensus
Issue:
Volume 2, Issue 2, April 2014
Pages:
13-19
Received:
4 April 2014
Accepted:
4 May 2014
Published:
30 May 2014
Abstract: With CSR spending becoming mandatory in some prominent economies, quantum of spend is increasingly becoming a non issue. Instead spending right has acquired prominence. Ever since policy makers mulled the idea of making CSR spending compulsory, there appears to be rush and panic in the business world to spend on CSR activities that gives them the best return on their social investment. The debate is on for decades now, as to who should decide on what to spend and how much? For long in the name of CSR activities businesses have been spending on initiatives that were either a part of owner’s choice or were easy to identify and implement, mostly avoiding the views of stakeholders inside as well as outside. This paper attempts to address broadly the issue of stakeholder confidence and preference in a CSR initiative. The paper suggests a model of engagement of stakeholders both within and outside of a business for the roll out of a CSR initiative.
Abstract: With CSR spending becoming mandatory in some prominent economies, quantum of spend is increasingly becoming a non issue. Instead spending right has acquired prominence. Ever since policy makers mulled the idea of making CSR spending compulsory, there appears to be rush and panic in the business world to spend on CSR activities that gives them the b...
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The Effect of Exchange Rate Volatility on Foreign Direct Investment in Ghana
Emmanuel Adu Boahen,
Oteng Evans
Issue:
Volume 2, Issue 2, April 2014
Pages:
20-28
Received:
6 May 2014
Accepted:
26 May 2014
Published:
10 June 2014
Abstract: Increasingly, Foreign Direct Investment is assuming a prominent role in the development and growth strategies of developing and emerging countries. Using a Vector Autoregressive (VAR) model, this study demonstrates theoretically that nominal interest rate volatility can simultaneously drive exchange rate volatility and impact on Foreign Direct Investment. It then provides an empirical illustration of the bias this endogeneity can cause when regressing measures of exchange rate volatility on foreign direct investment. It is a detailed study that looks at the long – run and short – run movement of exchange rate volatility, interest rate volatility and foreign direct investment by the use of the Vector Error Correction Model. The study also establishes that a stable exchange rate and interest rate improve Foreign Direct Investment inflow into the country. The study however explains that, the effect of interest on Foreign Direct Investment is indirect. It demonstrates that interest rate volatility directly affects exchange rate and market attractiveness which then affects Foreign Direct Investment in the long run. The paper therefore concludes that government should implement policies that will stabilize both the exchange rate and the interest. The study therefore suggests that policies that will reduce importation should be implemented whiles exportation policies should be enhanced and also government external borrowing should be reduced.
Abstract: Increasingly, Foreign Direct Investment is assuming a prominent role in the development and growth strategies of developing and emerging countries. Using a Vector Autoregressive (VAR) model, this study demonstrates theoretically that nominal interest rate volatility can simultaneously drive exchange rate volatility and impact on Foreign Direct Inve...
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