The triple bottom line is the new metric for measuring performance. It is not just profit that is important, but environmentally conscious profit that ought to be measured. Companies are implementing the DEI framework, which has ramifications on operating decisions. Such entities are symbolised as socially conscious entities. Deliberate growth of human capital is necessitated.
A predominant objective for all these practices is to maximise shareholders" wealth by enhancing market value. For valuation, it is important to gauge tangible and intangible assets. Intellectual Property Rights, Proprietary rights, innovation capital, etc. are important assets for businesses in the global ecosystem. This, coupled with a robust IT system to secure data and counter cybersecurity, is a vital investing decision that CTOs and CFOs should make. Businesses need to be much more agile and sprightly to be successful.
Dr. Kirti Sharma, Associate Professor, Accounting and Finance, Great Lakes Institute of Management, Gurgaon
First Published: Jul 22, 2024, 14:21
Subscribe Now