Workable Principles for Managing the Financial Markets by Deutsche Borse

Monday, September 9, 2013 Print Email

Non-financial aspects are a significant element of an organization’s intrinsic value as these aspects increase the organization’s credibility in key stock markets and help businesses to run more productively. Now-a-days shareholders and market analysts are more concerned about the information that helps in managing the non- financial assets. Hence, Deutsche Borse has devised a guidance principle model that supports all the organizations (small, medium, and large) in social, environmental, and sustainable perspective. However, this social corporate responsibility information helps in managing stock markets.

Deutsche Borse guidance depicts the underlying principles useful in organization’s productivity. He has proposed about seven paramount suggestions in Guidance Principle Model with different sections related to each suggestion. Following are the sections regarding suggestions: Forecast the top-down approach, consider stakeholder obligation, follow a risk and return strategy, present material data, give first choice to quantitative information, follow international as well as national standard, and give consideration to apparent problems. Moreover, all these sections present useful principles to carry out the suggestions. Corporate stakeholders state that these guidance principles help in corporate sustainability according to the international as well as national standards.

Deutsche Borse states that the important challenges key performance indicators (Key success factors that measure the performance as well as help organizations in achieving their goals) regarding organization’s performance evaluation, presenting workable quantitative statistics, offering pertinent circumstances, exemplify interdependencies between financial information and ESG information. Moreover, analytically it excludes information that does not relate to material aspect, and omit ambiguous key message that perplex investors and analysts.

In addition, Deutsche Borse principles does not focus on substituting existing national and international standards but it provides a summary of international and national standards. However, this guidance principle model includes an appendix with extra information about organizations (GRI, the United Nations Compact, and IIRC) that are implementing Deutsche Borse guidance to their non-financial factors.

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