The above advertisement is designed to encourage companies to donate generously to worthy health-related causes.
Consider the case of a medium-sized listed company. In your opinion, is it appropriate for the Directors to hand over shareholders’ money to causes, probably unrelated to the core business of the company? Is there a risk that certain Directors might wish to enhance their personal reputations in the community through this benevolent activity? How can this risk be mitigated? Would your views be different if the company was not profitable?
The question belongs to Finance and it discusses about giving views on medium-sized companies philanthropic activities and giving money to causes which may be unrelated to the company.
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