Sustainability in corporations

Introduction

With the development of society, the sustainability has become one critical elements for the companies to consider, they should never only focus on the profitability as finance inter flow can estimate, instead, they should utilize “finance condition” to estimate and predict, evaluate the “health condition” and “market value” of the corporation. Because in order to insure the operation quality, the considerations should be more. The number of FTSE 100 corporations in 2018 reporting sustainability issues is the highest at 79% out of all the categories considered, an increase of 20% from 59% in 2017. Dixon reports a significant increase in the extent of corporations reporting information on the internet as a result of stakeholder demands that require greater engagement with users of information.

Main body

Intelligent resources’ budget

The industrial background can be the basis of evaluation, the sustainability is based on the industrial formation in operation, the energy, commercial, real estate, cosmetics, automobile, chemist, these can be categorized and classified so that people’s behavior can have orientation and goals for them to be and to become or to manipulate.

The knowledge can be modules which can be functioned and managed without spoiled utilization in operation with time and cost proportion. The product and service can be the result of knowledge or intelligent resources which when people design and conclude, they can design the product life cycle, obey the rules of the market, considering political or cultural preferences to serve others instead of violating the business ethics.

For example, the advertisement has copyright and can be used for the commercialization according to the exposure of customers and transformation of purchase, for example, it is exposed 300 times one day with 30 times’ purchase, it means the market price should be budgeted along with the value addition, if it is exposed 10/30/100/300 times, the market price should have surplus because of users addition to increase value addition.

Information and communication

The communication within the corporation can be the utmost, it is the information interflow which can promote the exertion. The key module is the “payment” over the employement, the perks, dividends or other perspectives from external environment and the internal environment should have circulation together to increase the corporation’s quality, the finance budget normally is monthly or daily or commercially oriented and recorded with “key stakeholder engagement” including investors, boarder of directors, managers, operators, directors, company orienters, secretary and so on. The “committees” are finance, HR, audit, quality and compliance, these are complicated and framed in a model (Thompson, Leon, Gamble, Strickland, 2017). The communication should be solid and unified for governance without “fraud”. Then the work distribution is scientific and accurate in one structure, without the disorder in position or promotion, the communication circulation is transparent. Furthermore, the historical recording should be upgraded because it is within the copyright management, for example, the employees’ finance recording should be estimated within the corporation, if one employee leaves the corporation, the historical contribution should be belonged to the formal corporation, together with the property in lifespan, any violation should be budgeted, if he steals the statistics, trade outside, make fraud with traders, these should be budgeted with legal measurements as finance compensation because of actual behavior, violation of copyright, rumor, forbidden of suggestion, infringement on legal rights before he deserves the penalty (Horngren, 2012).

Technology

There is key technological progress, the patent, copyright, trade, mark, picture, author, operator, ownership, renting time, use period, version should be evaluated and financialized, for example, music albume’s finance budget should include the productor, manufacturer, the composer, the author, label maker, legal consultant, guider, other labours, the performer within the corporation, any influence towards others should be responsible for themselves in business regulation within the global market (Griffin, 2009). Fake albumes should be penalized because of the time of the fake production in current market value, for example, there are two parties in the deliberate merger, the sales’ deliberate concealiation on information after descovery should deserve the compensation and halt of transaction, if any value is broken or destroyed, deserted with irresistable value, the lifelong prison should be sentenced apart from economic compensation.

Leadership and goodwill

The goodwill should be the intangible asset for corporation management. The goodwill’s budget method can be as follows, “Imagine an investor buying 100% shares in some company for CU 120 000. At the date of acquisition, the net assets of this company (or its fair value) amount to CU 100 000.”(May, 2013) In Chinese society, many corporations never consider this perspectives, thus it would let corporations lose the historical value addition, never avoiding the product life cycle revolution period. If there is goodwill + or -, it can be budgeted and estimated for coherent and sustainability, avoiding vicious market competition or sudden profitability, for example, e-commerce suddenly causes market liberalization without any bounderies, recently there is insurance or fake check signals, the technology is lagged behind after problems’ taking place, 4 years’ fake production’s product should be budgeted in the fair value independently with finance payment yearly, if the bankruptcy is applied, the business should be instantly stopped only then it can be protected for national policy, accusing the key manager or leader who delay the time commitment with fake product production, the key leader should stop the behavior and estimate after commercialization in 4 years’ operation period since the product’s formation ande decaying devaluation because it is fake product and can never have impairment.

Marketing and promotion

The marketing and promotion has huge price, without marketing, the corporation’s market value can not be prior to other corporations. The typical brandy corporations from USA and Europe usually have “agent or distribution, franchise, subsidiaries”’ relationship. For example, the capital, urban area, countryside should have 10%, 6%, 3%’s commission distribution in the current management mode, the third party relationship should never be included in the commission for external payment without any excuse, if the Middle East bank is profitable because of finance prosperity, the Australian headquarter should not gain the profitability in shares, but can be structured in stock only. The promotion and marketing should discreetly go to stock market in US, the US stock market’s finance resources can reduce debt but expand local market share.

Asset management

The total asset, long term asset, short term asset, tangible asset, light asset should be classified, independently budgeted with fair market value, if it is fake product, it should be paid off instantly, transforming the copyright in the characteristics of the product, for example, Beingmate infant milk has fake channel traders who produce milk in the name of beingmate, the trader’s conduct should deserve panelty of manufacturing fake products, paying off and have the product returned as EU has listed relevant regulation, the brand’s tolerance should deserve compensation because of management default, the blindness or deliberate cheatment because of any corporation members’ recommendation should be accused because of strategic management and duty default, delay, hinderance, violation, ignorance, malfunction of national, social, corporative principles, legal regulations and so on (Appelbaum, Felstiner, Gessner, 2001).

Debt relationship

The debt with banking service, channel management, stock structure should have the debt relationship maintenance, the accounts payable is yearly budgeted, the reason for yearly payment depends on the integrated management, if it is not qualified, it should be penalized and laboured, recruited together for operation, the “time cost” should be a kind of investment with interest, marginal interest, debt interest, the market leverage can never be the excuse of the unqualified copyright violation, or fake product production, existence. The US audit system is the most superior one, obeying IFRS and CAAC, estimating all the assets in a whole.

Conclusion

In conclusion, the accounting management should be kept as simple as possible, if there is debt relationship, it means the copyright is as huge as possible, the long term belief’s commercialization can let the capitalization periodically and change forms in a sustainable method without any risk. The huge the debt keeps, the market can be globalized and localized, universally applied to different markets. When the countries are unqualified or inferior for corporation’s debt management, it is possible for capitalization in foreign markets for funding to build and improve, establish, or become one of the distributor of the mature corporations in order to improve accounting structure to maintain the sustainability and to beat unqualified corporations.