What Is Financial Sustainability?

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Sustainability may be defined as the process by which companies strategically interlink their financial, social and environmental risks, obligations as well as opportunities. These three may be referred to as profits, people and planet.
The Oxford Dictionary describes sustainability as follows: Able to be maintained at a certain rate or level – sustainable economic growth.
Financial sustainability may be achieved when a business has the power to provide the market with products and services at a price that covers their expenses and therefore is able to generate a profit. Long term profitability is the main goal in a business’s financial sustainability.
The idea and focus of sustainability has often been applied to the area of resource …show more content…

Enough cash needs to enter the business in order to pay for and therefore cover all the expenses of the business. Most purchases or payments are done via the customer’s or patient’s medical aid. Thus, allowing payments via card facilities. In this case all the rules need to be clear and late payments should be followed up. By keeping accurate and clear financial records will help the business to be financially sustainable. Cash flow statements allow one to see the flow of cash through a business. A positive cash flow balance indicates that the business is receiving more cash into the business than they are letting out (to pay for expenses). The balance sheet of a business indicates a snapshot of the business’s financial position. The balance sheet also helps determine what assets the business owns and what liabilities the business owes. The Balance sheet will help monitor the stability and sustainability of one’s business. Having no financial sustainability will result in a business not surviving in the …show more content…

Mediclinic International is solely and globally focused on achieving a sustainable business. The Board of Mediclinic accepts full responsibility for corporate governance. The Board is satisfied that the company meets the requirements of the Companies Act, the JSE and majority of the principles stated in the King Report on Governance for South Africa. The Board is also responsible for Mediclinic International’s risk management. The responsibility includes managing the process and systems of the internal control of Mediclinic. The main goal of risk management is to establish and maintain an effective risk management framework where important and accurate risks are identified and all risk management should be incorporated in day to day systems. Mediclinic aims to uphold the highest standards of ethics and aims to be as sustainable as possible. They aim to gain from the many benefits that sustainability maintain by improving the access to capital by providing a responsibility towards the investment proposition. Mediclinic refers to sustainability as a way of

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