Author Archives: Isobel Black

Financial improvements by CSR


As we already know that CSR has gained popularity in very less time and it is acting as one of the main aspects which are helping the firms to increase their profits and respect towards their company in society. As this is proven fact many large-scale companies are involved in it. There are different firms available in markets such as healthcare, financial services, software, goods consumers, and etc. they all spend a specific amount on CSR activities, there are two different models in CSR:

  • CSR-CA: company ability relevant CSR
  • CSR-NCA: company ability irrelevant CSR

The corporate company can choose any of the models to pursue it. Relating the CSR activities with profits is not an easy thing to understand but doing it is so easy by doing various CSR activities form the firm it would help:

  • Gaining brand reputation: by increasing the reputation of the brand it will get more name and fame all over the world due to which sales of a particular company will increase.
  • Transparency of the company increases
  • Cost saving can be done for CSR by cutting some unnecessary things
  • By involving better in CSR the firm will be able to attract the investors as people want to invest in a firm which has a low risk with better CSR the company is safe hence it will attract investors.
  • To get best out of the employees, the organization will be interacting with them continuously hence there will be an improvement in production which results in profits of the firm.
  • Going for CSR activities make the firm socially responsible, hence the firm will be completely transparent with their policies so it has a chance to attract more and more investors by which they can improve the condition of company economically

Here I can provide you a good example of Wal-Mart which was involved in CSR by which they were able to reduce the impact caused by environment and also save money by doing cost cutting on their value chain by deducting the inefficiencies. To be more progressive and helpful for CSR they have reduced packing by using disposals and used the investment in better routes. They saved $200 million by reducing their carbon footprint by using similar quantum. Many researchers say that CSR is wealth protective effects than wealth-enhancing effects. By practicing good CSR company can reduce financial risk and avoid adverse risk from the balance sheet of the firm.


Factors That Drive Mergers And Acquisitions


Though the term mergers and acquisitions are always seen and discussed together as synonymous words, there is a difference between them. A merger is when two companies come forward to get merged into one and they decide to combine and collate all their operations, their business concepts, their business secrets and everything together as one.

The acquisition is when a company takes over the other thereby accepting to take all its financial and business dealings as such and later bringing in changes in them according to its operations and business dealings. So in both cases, there are two companies becoming one but under different heads. Now there are a lot of factors that influence and trigger one of these.

  • Strategy – we have come across a lot of mergers and acquisitions but have we ever thought of the baseline that would have lead to this? The baseline for any two companies merging or when there is an acquisition happening would definitely be a strategic fit. Yes, it is a very advantageous and profitable move in case of both merger and acquisition. Generally, companies that decide to come closer under any of these two would have a match in their strategies. It might be either in terms of the market they are serving currently, the type of product they are dealing with or a service that would complement each other. It is this that actually makes the mergers and acquisitions a success and a possibility too making it a profitable move.
  • Synergy – generally companies that come together either for a merger or an acquisition try to merge department wise eliminating all the extra and the temporary ones in each of them. This makes it a more meaningful move wherein the marketing department would have marketing executives dealing and selling the products of both companies matching their suites thus bringing profits to the company. This way the other departments also function to benefit the major move and finally the company.
  • Another important factor that drives mergers and acquisitions is the acquisition or absorbing of talents. When two companies merge, they get to pool their talents into one single area thereby focussing and driving a better and enhanced approach to the customers. By doing this many companies have made their successful moves and they have also been very successful in their business operations. In such situations, there also happens a better understanding and sharing of knowledge giving birth to new ideas and concepts.

How Does A Payment Gateway Work?

We are one lucky bunch who is living in a generation of technology in everything around us. When we say technology we mean the ease of use of all services in our day to day life that has been supported by an electronic factor which helps us to deal it conveniently. Creating huge databases which can be effective and procedures to ensure ease of transactions is the key to this new terminology called Financial technology (Fintech).

Most of us are the users of the technology upliftments in banking, investment, and insurance sectors. For example, most of us have the mobile banking feature which is an easy to adapt facility which helps us in online shopping and also making online cash payments. We choose the items we want to buy and place an order and make payments using our credit or debit card online or the net banking feature online. And then we wait for the products to reach our doorstep. But the process behind the scene is more complicated and unknown to us. This is a sincere approach to make you aware of how any payment gateway will work and cater to your needs.

The mechanism of a payment gateway

Any online payment process follows the following steps to fulfill cash transaction from customer to supplier.

  1. The customer makes a purchase and inputs all his payment information as required on the website.
  2. This data travels to the merchant’s payment processor which works for the company and processes the transaction.
  3. These are then routed to credit card association like visa, master card etc where an interchangeable fee is charged.
  4. Now it is time for the transaction to be approved or denied. Here the card needs to be valid and have enough funds for the transfer.
  5. After a matter of few seconds, the above steps finish. After the transaction becomes authorized, the payment bank redirects the transaction to the parties in the payment process. This travels through a series of authorization like credit card association, payment function and finally to the e-commerce site’s payment gateway
  6. This looks simple but the transfer of funds can be anywhere from 24 to 48 hours.

This completes the entire process of the payment gateway process which most of us have seen as a function of our online purchases.

Why do we need a payment gateway?

In order to have safe and secure cash transactions online, a payment gateway is a must. It has the authorizations and hence there can be no illegal use of our credit cards or banking credentials.


Growth or Dividend pay-out- which to choose!!

There is a saying that ‘Ignorance is the biggest mistake of mankind’! every word is so true, let’s consider the example of the biggest asset that we have- money. We all know that it’shard to earn and even hard to save, yet we make the grave mistake of analyzing the info available and researching and end up cribbing.

Most of us are aware of mutual funds, heard about them. But in reality, we don’t have much info about why each of them is different and why is that our funds aren’t earning like any other pro? Why? Let’s chuck that ignorance and open our minds and eyes rot the info available and make the most.

The main aim to invest in mutual funds should be your goal at the end and your risk capability. If you know these 2 factors, then we are here to help you. In mutual funds, each fund has its own pro and cons, yet few of them are the best ones in terms of returns and are appreciating in the initial capital more than any other fund.

There are 2 options in mutual fund investment, one is the growth option and the next one is dividend pay-out. Here we explain; what’s the difference which will make in your end capital amount.

Growth option:

This is one of the most sought options, as the name says it gives you growth in the longer term. When talking about any investments, we always look for a longer term. It must be for a longer term, beyond 3 years, to see any change in your capital. So, always have a long-time period to allow your money to grow. Growth period doesn’t give you any short-term earnings but concentrates on your capital appreciation. Here you’re NAV increases, and also the number of shares per unit.

Dividend Pay-out:

This option as the name says you get a pay-out every monthly or quarterly. But, the point here is, this type is suitable for only short-term investments. If you are looking to invest only for a year, then you can choose this option. Here, the capital appreciation is very low to moderate, and gain dividend.

This type is good for senior citizens and families who need a steady income for the invested capital and also a decent appreciation in capital.

We hope this will help you in choosing the right kind of fund according to your needs.





What you must know about salary negotiations

We have all been in a situation like this as an employer or an employee we either seek salary negotiation or have to sit through one. My friend, Lenny has been on the board of a staffing agency and he claims that he has seen it all!

Possibly so, with a career spanning a decade and a half in the same industry, I am sure he knows what he is saying. He claims to have seen quite a lot of people sit through this most uncomfortable of sessions. Some of them coming out impressively well but most of them cut a sorry figure.

So, we get talking about this one evening:

Honestly, I never quite realized the importance of salary negotiation before I had Lenny explain to me the importance of this one aspect of job seeking which has the capacity of letting the employee have or not have complete work satisfaction.

Lenny was a matter of fact trying to push the envelope saying that more than the job interview, more than the actual acceptance of job and making the first impression, what is more, important is how you carry forward your terms of engagement with the company you want to join. Stressing the importance of a salary negotiation further he also points out that the exercise helps both the parties appreciate each other’s role in the company and also helps them appraise each other, which is a positive thing!

Everyone makes the same mistake”:

If there is one thing that everyone who is seeking a job does is that he prefers to silently accept the terms as given to him in writing by the company choosing not to argue or even debate the pros and the cons. This can be understood in the light of the facts that the employee

  1. May not want to come across as acting pricey;
  2. May not want to put off the interviewers by asking them about the remuneration package just yet;
  3. May want to accept the job first even before he opts for someone else.

There is absolutely no stigma in negotiating your salary:

Lenny spoke about the fact that a lot of youngsters seeking jobs at big conglomerates think that they would come across as snooty and egotists if they suggested a figure or negotiated for better perks. However, this is absolutely not the case. The employers are more than happy to hear what the employee thinks he deserves.

In the end, it is not what you deserve but what you ask for that you get! Lenny says with a wink!

Assessing Your Risks In 4 Simple Steps

The financial market is more alert than ever before because of the various regulatory bodies that are on the prowl to take note of companies and business owners that might be potential targets for risks. Every financial organization must have a thorough understanding of their risk profile and how the risks can be mitigated. Considering the fact that the finance industry is highly volatile and is prone to a good deal of risks, marching ahead without a proper risk assessment is a huge mistake.

Here are 4simple steps that you could follow in order to assess your risks while there is still time.

  1. Risk identification

The definition of risk varies from one person to another and also from one field to another. The common factor with all kinds of risks associated with a business is the fact that it encompasses everything that inhibits your efforts to reach your target. If there are factors in your business that negatively impact your work environment, the image of your company, the quality of your products and services, then all those factors will be considered as risks. So, the first step in risk assessment is risk identification.

  1. Risk library

Restricting yourself to identifying and analyzing the risks is not enough. One needs to have a risk library that will initiate and guide the entire process of risk assessment. A risk library is a conversation starter, wherein, the potential risks and discussed and awareness is created. Everyone involved in the company’s financial sector and otherwise is made aware of what to do and how to do.

  1. Mark risk owners

A company is divided into various sectors and risks are associated with each one of them. It is practically impossible for a business owner to view all risks in detail which is why he or she must mark a risk owner for a particular category and let him or her to the groundwork. He or she can also be given the responsibility of initiating risk controls so that Lion’s share of the work is done before you are required to intervene.

  1. Identifying the controls

Not all control measures work everywhere. In order to minimize your risks significantly, it is required to identify the control that is exclusive to the category in question. Reading investment guidelines properly is an efficient way to minimize risks associated with Equity. These are market risks and require a different set of guidelines that apply to environmental risks; hence, the categorization.

Introduction to Microfinance


We hear that a lot of new businesses have made an entry and lot of them have vanished just like that! There are many reasons behind it, one of the main reasons we found out was lack of financial support. Finances play a vital role in shaping the business of any kind. Without a proper support of finance, be the best of talent can’t be showcased and cant is brought to the world, and all of it goes in vain.

So, how do any small businesses thrive in the initial days? How do they fund their innovative idea? How is it possible for them to sustain the expenses and go forward with ideas to lead the business? Though family and friends are an option at the beginning, it can’t be always and can’t be full too; no matter how hard, one need a strong back power to help financially. So, what’s the solid option to become free, emerging businessmen or businesswomen?

Small business ideas are helped and financed by microfinance options in the suburban areas, like using the help of co-operative banks, smaller banks, and small fund houses. This small chain of financial service groups falls under the category of microfinance.

So, what exactly is microfinance?

For all those, small business entrepreneurs, this is one of the biggest fund house, that can help in getting your small capital for your start-up business, which the main big banks don’t consider and don’t bother to cater. This is mainly to support and encourage the smaller group of people with no capital, or very less capital but with talent and skill to come up with their business.

How to get help?

You can apply for this financing option by applying at several affiliated banks or organizations. Certain larger banks too, now, give microcredit to small-scale businessmen. Approaching an organization, that takes care of the microfinancing that also is non-profit organizations.

What does it cover?

Microfinance covers all your financial needs like a business in small scale, housing (smaller level), healthcare, insurance and few others.

Why is it helpful for small-scale businessmen?

There is no collateral required to be submitted as a deposit for your business finance or loan, considerably lesser interest rate, a short period of the loan, small amounts. Hence it’s very much suitable for emerging businesses.

How to proceed?

One needs to open a savings account in the respected small organization, and then proceed with loans or other needs and start their business journey.