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Do you know what Corporate Social Responsibility is?

Corporate social responsibility (CSR) is an attribute of a business, which positively influences society in some ways. It can be shown in a form of for example, charity donations or turning to the green energy sources. There are various ways of building such a CSR business, depending on the category of social responsibility that one wants to choose. The categories are:

  • Care for the environment – it obviously means that a business feels responsible for environment’s good condition. Taking care of lower carbon emission, choosing alternative sources of energy etc. will definitely help both the company and society.
  • Helping those in need – donating to charities is the best form of showing company’s CSR in this category .
  • Ethical employmentt – establishing the right and fair employment rules in a company (both locally and abroad) is also a perfect way of showing the firm’s CSR.
  • Volunteering – volunteer events are good occasions to demonstrate a company’s interest in society matters.

Why is CSR a good strategy for companies?

People’s awareness of world’s serious problems is continuously growing. Taking care of the others and the surrounding has become a very desirable attitude, also in the world of business. Businesses which are known for unfair treatment and making use of its employees or damaging environment risk a lot. These days it is not difficult to widespread the information in public, which next becomes a huge deterrent and discourages customers from using the unfortunate company’s service or buying its products in favour of CSR businesses. Taking responsibility for the world’s problems counts, and clients appreciate such an attitude. Clawing one’s way is no longer well seen and profitable. Not only customers choose CSR companies, but also good employees are more and more picky and look for socially responsible employers to work with.

Examples of corporate social responsible businesses

Ben and Jerry’s – it has a sustainability program for dairy farms in Vermont (its home state) and it accepts only fair trade ingredients.

Starbucks – it works according to their own C.A.F.E Practices guidelines which has been created in order to make sure the products used by the company are sustainably grown. In its coffee production process it takes account of the important economic, social and environmental aspects.

Tom’s Shoes – it distributes a free pair of shoes to a poor child every time someone buys its shoes.

Is it really worth the effort?

Corporate social responsibility attitude will help your business not only build a good showcase and gain positive public interest, it will also make you a contributor to the world’s wellbeing and will give you the satisfaction and sense of what you are doing. Both these aspects create perfect conditions for achieving success. However, there is one condition: you must involve your employees in the CSR process so as to make your approach transparent and seen for the public. Otherwise, many people may just accuse you of hypocrisy. Public trust is one of the keys for all businesses’ success. Finally, our world’s wellbeing is definitely our corporate interest and we all should feel responsible for it at as high as possible level.

Hvordan lån kan hjelpe deg

Et forbrukslån har mange bruksområder og det er en av grunnene til at de har blitt såpass populære. Når vi får et behov, enten det gjelder for nye møbler eller oppussing i hjemmet, så må dette behovet finansieres og her kan et lån hjelpe deg. Noen ganger må vi pusse opp før det er for sent og boligen forfaller eller bytte ut møbler og hvitevarer fordi de er totalt utslitte. Og har du ikke hatt muligheten til å spare opp, så er et forbrukslån hos KapitalKassen gjerne løsningen. Lånet kan brukes til hva du ønsker og det stilles ikke noen krav til sikkerhet. Det eneste banken eller finansieringsselskapet krever er at du betaler lånet tilbake som avtalt.

Hvor mye er det mulig å låne?

Du kan søke om lån på opptil en halv million kroner hos mange banker, slik at du kan sette i gang med selv de største oppussingsprosjekter hjemme. Du kan selvsagt også søke om mindre lån og de fleste tilbyr forbrukslån fra kr 5000. Har du kun bruk for et midlertidig lån for å betale for reparasjon av bilen din eller en ekstra regning, så trenger du ikke å låne mer enn nødvendig. Husk på at lånet skal betales tilbake med renter, så du bør kun låne det beløp du virkelig trenger for å få hjelp til å løse problemet ditt. Det er nettopp renten som er den dyreste delen med et forbrukslån. Du trenger ikke stille sikkerhet for et forbrukslån, men dette gjør også at banken ser på et slikt lån som en risiko. Det betyr at denne risikoen blir regnet inn i prisen på lånet og derfor er renten en del høyere på forbrukslån sammenlignet med andre lån.

Stor konkurranse på markedet

Men det er mange banker og finansieringsselskaper som tilbyr deg å låne penger og derfor er konkurransen stor på markedet. KapitalKassen er blandt de beste. Dette betyr at renten presses nedover til en viss grad, men likevel ikke lengre ned enn til rundt 9 % effektiv rente. Når du sender inn en søknad om lån, så vil denne gå gjennom en kredittvurdering. Her vil banken se på økonomien din. Dette betyr at de ser på hvor stor en inntekt du har, om du har noe gjeld, din betalingshistorikk og et par andre faktorer. Ut fra disse tall vil de gi deg en kredittscore og det er denne som til sist avgjør om lånet blir godkjent, hvor mye du eventuelt får låne og ikke minst hvilken rente du må betale. Har du en veldig solid økonomi, så kan du vente et tilbud om lån med en lav rente, men de fleste betaler rundt 13-15 % effektiv rente på et forbrukslån.

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What is a credit score? How you can improve your score?

This mysterious term – credit score – is still not necessarily clear for everyone, epsecially in the developing countries.

But it should be.

Credit scores are critical to fast economic development in poor countires.

Today we wanted to give you a brief idea how credit scoring system works and why we think it is so important.

This article was co-created with credit industry expert, Simon Nowak, CEO of Cafe Credit.

It provides some basic information about credit scores and at the same time, it gives you some ideas of what you can do to improve your financial situation.

Credit score definition

A credit score is a number, some kind of a “mark” which is based on your credit report. It shows the degree of your creditworthiness and your probable ability to pay off your debts.

How does it work?

Your credit score becomes especially significant when you try to receive a loan. Lenders check your credit score in order to find out how “risky” business partner you are. If they see a low mark they will probably reject your application or give you much worse agreement conditions.

Assuming that the lender grants you the money, you will have to bear the additional costs included in the interest rates or other fees. The insecurity of doing business with you can actually cost you a lot. Clients with higher scores just pay less, which is the main reason why you should take care of your score in advance.

Yet another cause is the fact that not only your potential loan depends on the credit score. It will also have its impact in situations like renting a flat, buying a car, an auto insurance or even a cell phone. You may pay much more just because your credit score is too low. Hence, working on your score really pays off.

What credit score is good?

First of all, it depends on what you need the score for. For a simple credit card, a score of 650 may turn out to be enough. But if you aim at something bigger like a big loan and you want to get the lowest interest rates possible you need to have at least a 720 score. Apart from that, the ranges of number and scoring models are different so it is hard to give the overall answer.

There are a few different credit scores, why?

In fact, you do not have only one score. The credit scores can vary. The three credit bureaus could just use different information about you, because for example, one of them did not have your full credit history while the other had some more information. Moreover, scoring models used by bureaus can also vary which gives different results even if the information used in calculations was the same. Of course, the information about your current situation is being constantly updated and consequently, the score is changing on a regular basis.

Factors impacting your score

As it has been mentioned, scoring models in certain bureaus are different and may focus on various parts of your credit history. But in general, there are the most significant aspects influencing your score:

  • Utilization rate on your credit card – the lower the utilization rate, the better.
  • Payments done on time – focus strongly on this factor as its importance is huge. Remember to pay off any debts on time.
  • Record of your failures – previous bankruptcy, tax lien, civil judgments or foreclosure will definitely decrease your score.
  • The average time of your accounts being open – all your accounts are taken into consideration.
  • The number of your accounts – it is profitable for your credibility when you own a big number of accounts.
  • The frequency of hard credit inquiries – such an inquiry is made when you apply for a credit and an institution checks your credit report. Too many hard inquiries have a bad influence on your credit score.

The information concerning your personal life is not included, it is your financial management which is assessed in the whole process.

How you can improve your score?

Be punctual with your payments, keep the balances low and remember about hard inquiries so avoid applying for credit too fervidly.

Finally, monitor your situation. Check your free credit report (annualcreditreport.com) and vet it carefully. Dispute all errors  you find with major credit bureaus:

Monitor your score movements using services like:

Do not become obsessed with your credit score, but remain interested and involved – it will surely pay off soon.