ABSTRACT
Modern financial texts postulate that the objective of the firm is to maximize its market value. Acceptance of this single objective should lead managers to maximize the anticipated level of net operational cash flows and minimize the perceived level of risk associated with those cash flows. Managers of industrial enterprises have been called upon both to recognize the interests of various groups when making decisions and to make periodic reports to interested parties, in addition to the providers of funds who have rights to receive information under the Companies Acts. Community involvement includes those socially-oriented activities which tend primarily to benefit the general public – for example, philanthropic programmes, community involvement by employees, corporate community services. The total cost of the investment includes those quantifiable expenditures associated with recruitment, selection, hiring, training, placement, familiarization and development. Employee abilities are related to profit generation, and may lead to a more efficient allocation of human resources.
