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Long Term Financing Structure

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The motive of doing business by taking all the pains is to earn a return. The financial goals of the companies vary upon two broad headings i. e. corporate wealth maximization and the shareholder wealth maximizations. Traditionally, the sole objective of doing business was to earn a return for the owners. The shareholders of a company are the original owners. Therefore, shareholder’ s wealth maximization has been an important financial goal of the companies. Shareholder’ s wealth of the company can be measured by measures like EVA (Economic Value Added). But in recent times, apart from wealth maximization of the shareholders, another model which talks about the financial goal of the companies is that of Corporate Wealth Maximisation.

The Corporate Wealth Maximisation is a broadhead which includes other parties related with the company apart from the shareholders like that of suppliers of materials, customers of end products, human capital (employees or the workforce), external parties like government and the bankers. There is no such method to measure the corporate wealth of the company (Watkins, n.d. ). In case of Sony Corporation, it is found that the company has definitely cared for share holder’ s wealth maximization as the diluted dividend declared had been doubled in 2008 compared to the previous fiscal year of 2007, from ¥ 120.29 (in 2007) it went up to ¥ 351.1 (in 2008).

Also, it had declared cash dividends for three consecutive years. Sony Corporation, a global brand in its own right, has also taken the number of measures to benefit its stakeholders. Corporate social responsibilities initiated by Sony include environmental initiatives like reducing the emission of greenhouse gas and reducing power consumption.

To fight the threat of global warming Sony has initiated global seminars. Along with IBM, Sony has formed EICC (Electronic Industry Citizenship Coalition) to implement shared efficiencies and code of conducts among the suppliers. To promote young talents, Sony had initiated the Sony Student Project Abroad (China). Also, it had denoted digital cameras to UNICEF under Eye See Project. Sony is also partner to the soccer federation of the world, FIFA!

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