Financial Management for Sustainable Development in Mexico
For some, sustainable development is associated with the ecosystem. For others, it method investing in projects or technology that will reap long-term benefits and will have no tangible effects on the present. This could not be further from the truth. As defined by the UK based Sustainable Development Commission, sustainable development is development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.
The business and Industry sector has traditionally been pushed by a single factor, such as profit or efficiency, to the unhealthy of other vital elements society relies on, such as local communities, the ecosystem, science and technology, or welfare. The negative impact on society of this one-dimensional approach has been reflected by large-extent financial crises caused by irresponsible banking, or already strong changes in climate patterns. However, the growing influence of established and socially responsible corporations, such as HSBC, combined with the emergence of new players, such as Google or Facebook, has contributed to shift the rules of engagement and cause more pressure on their docks to adopt corporate practices that are more in line with sustainable development.
Good financial management is defined by the efficient and effective management of company funds in such a manner as to accomplish the objectives of the organization. This is achieved by planning, monitoring, organizing and controlling the monetary resources of an organization. If the objectives have as a focus the capacity to balance different, and often competing, needs, against an awareness of the environmental, social and economic limitations faced as a society, then the sustainable development part will be part of the driving force of the company, instead of being perceived as an additional cost, or labeled as the price of doing business. Ensuring you have the right financial management framework in place, whether it is in-house our outsourced, is the meaningful to delivering successful sustainable development.
Over the years, Mexico has consistently contributed to sustainable development on a global level, and has been leading by example in Latin America. Mexicos progress in policy planning and institution building over recent years has been exceptional, including the April 2012 adoption of the General Law on Climate Change (LGCC in Spanish), one of the worlds first climate laws-and the first in a developing country. Under this law, Mexico aims to reduce its emissions by 50% from 2000 levels by 2050. The NDC proposal is consistent with this objective. Mexico has considerably lowered its CO2 emissions without restricting its economic development, and truly seeing important growth. Various ministries now offer wide-ranging sustain to companies wishing to grow the economy whilst making a positive impact on the local community involved, and the inflow of foreign direct investment in these types of projects is a testament to the fact that Mexico is leading the field.
by efficient financial management you can build substantial foundations for your company, in addition as providing bright opportunities for future generations.