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Capital Budgeting and Corporate Responsibility. Mr. Balraj Kistow Lecturer – Finance and International Business & Doctoral (DBA) Candidate Arthur Lok Jack Graduate School of Business, UWI b.kistow@gsb.tt
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Capital Budgeting and Corporate Responsibility Mr. BalrajKistowLecturer – Finance and International Business & Doctoral (DBA) CandidateArthur Lok Jack Graduate School of Business, UWI b.kistow@gsb.tt Dr. Ron SookramLecturer – Corporate ResponsibilityArthur Lok Jack Graduate School of Business, UWI r.sookram@gsb.tt
Background • Business viewed as a major cause of the social, environmental and economic problems • New paradigms to redefine the purpose of business in society • The sustainable enterprise • The need to account for indirect cost. • Capital expenditure and sustainability
The Study • To determine the techniques employed to evaluate capital projects among firms in Trinidad and Tobago. • To ascertain the extent to which firms consider corporate responsibility in evaluating the impact of capital investments.
Method • A survey instrument was administered to 126 randomly selected firms over a one month period (March –April 2010). • 3 questionnaires rejected due to missing data. • The remaining 123 questionnaires were coded and analyzed using SPSS.
Conclusions • Reliance on techniques that emphasize financial yardsticks. • The need for firms to become more aware of sustainable techniques • As sustainability issues take the forefront, firms would be forced to adopt newer and more holistic techniques.