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What CFOs should know--and do--about corporate responsibility.
Michael W Peregrine1, James R Schwartz
1Manatt, Phelps & Phillips, LLP, Los Angeles, California, USA. mperegrine@gcd.com
Summary
Financial managers in not-for-profit healthcare must address corporate responsibility. Key actions include certifying financial statements and ensuring audit independence to meet public policy demands.
Area of Science:
- Healthcare Management
- Financial Accounting
- Corporate Governance
Background:
- Not-for-profit healthcare organizations face increasing scrutiny due to corporate accounting scandals.
- Public policy and legislation are driving a focus on corporate responsibility in the healthcare sector.
Purpose of the Study:
- To highlight the critical role of financial managers in addressing corporate responsibility concerns within not-for-profit healthcare.
- To inform financial managers about public policy drivers and their impact on corporate responsibility.
Main Methods:
- Literature review on corporate governance and financial reporting in the non-profit sector.
- Analysis of relevant legislation and public policy trends impacting healthcare organizations.
Main Results:
- Financial managers are central to ensuring accountability and transparency.
- Understanding public policy is essential for effective corporate responsibility initiatives.
Conclusions:
- Financial managers must proactively implement measures such as certifying financial statements, establishing robust audit committees, and guaranteeing audit independence.
- Adopting these practices is crucial for maintaining public trust and compliance in the not-for-profit healthcare landscape.