Briefly explain non financial objectives, Financial Management

Assignment Help:

Briefly Explain Non Financial Objectives

Monetary statements of any sort are only an expression of organisational activities that can be measured. Lots of the activities of an organisation can't be easily measured nor can its relations with various stakeholder groups who may have a non-financial interest in the organisation. Non-financial purposes that perhaps difficult to measure or express in financial terms include

Welfare of employees as well as management

- Safety

- Health

- Leisure and other services

Welfare in the wider community

- Minimisation of interruption into the community for example traffic.

The stipulation of a service for which no charge is made example public hospitals. as well including

- Local or else regional government services

- Housing

- Education

The effectual supply of goods or service in addition to cost/efficiency issues such as

- Product or service quality

- Making sure product or service supply (example vital services)

- Timeliness

- After sale support

- Customer or user satisfaction

Completion of product or service responsibilities this is a very broad area and would cover many of the core activities of a business such as

- Leadership in research and development

- Product development

- Maintenance of standard in goods or service provision

- Maintenance of superior business and community relationships

- Employee training and support

Support for community activities

Minimisation of externalities (example pollution)

Completion of statutory or regulatory responsibilities

Whilst it perhaps argued that many of the objectives expressed have an impact on profitability or costs they only do thus in an indirect manner. Furthermore as with most organisational activities non financial, objectives crystallise into monetary issues given enough time. Therefore for example poor service provision will ultimately lead to loss of customers in a competitive environment.

The sorts of stakeholders that may have an interest in an organisation's activities are wide and for the reason that organisations have to respond to stakeholder interests the non-financial responsibilities and hence range of objectives is extended. In this high opinion stakeholders create for organisations a range of nonfinancial issues that have to be addressed. If organisations are approachable then these issues become part of the culture of an organisation and hence part of its broader purpose. Awareness in the organisation's activities from a non-financial perspective can arise even if the stakeholder has a financial relationship with the organisation. Therefore the stakeholders who may have an interest might include the following

Shareholders

Suppliers and trade payables

Debt holders

Customers

Employees

Pensioners and ex-employees

Competitors

Local community

Wider national and international interests

Government

Regulatory authorities

Tax authorities

Special interest groups concerned with pollution for instance Moreover lots of of the stakeholders have common interests and hence stakeholders' groupings can emerge.

 


Related Discussions:- Briefly explain non financial objectives

Surplus economic unit deal with a deficit economic unit, What can a financi...

What can a financial institution often do for a surplus economic unit that it would have difficulty doing for itself if the surplus economic unit (SEU) were to deal directly with a

Corporate governance, CORPORATE GOVERNANCE Corporate governance can be ...

CORPORATE GOVERNANCE Corporate governance can be stated in different ways, for example: The Private Sector Corporate Governance Trust (PSCGT) defines that corporate governan

Volatility risk, Expected volatility is a major factor that affects t...

Expected volatility is a major factor that affects the value of an option. Expected volatility of an option on bond is referred to as 'expected yield volatility'. The

What is the optimal amount of risky assets, Consider a world with two asset...

Consider a world with two assets: a riskless asset paying a zero interest rate, and a risky asset whose return r can take values +10% or -8% with equal probability. An individual h

What are the time dimensions of the income statement, What are the time dim...

What are the time dimensions of the income statement, the balance sheet, and the statement of cash flows? Hint: Are they videos or still pictures?  Explain. Sol. The i

Example of relationship between bond price and time, Illustration    ...

Illustration      Discount bond (5 yr. bond with 10% coupon) (expected rate yield at 12%) Premium bo

Final Project AFM, Ask questiona) Maju Construction (MCo) Sdn. Bhd. is bidd...

Ask questiona) Maju Construction (MCo) Sdn. Bhd. is bidding on a contract to build four tiny camping house (TCH) a year for the next three years for Sintokian campsite. Each TCH wi

Measuring interest rate risk , Investors are always interested in est...

Investors are always interested in estimating the price sensitivity of a bond to change in market interest rates. Let us study how prices change both in terms of

Modern / discounting cash flow techniques, Modern / Discounting Cash Flow T...

Modern / Discounting Cash Flow Techniques : These methods generally are of more use to businesses in their investment decisions. They take into account the time value of money and

Explain monetary approach to exchange rate determination, Derive and illust...

Derive and illustrate the monetary approach to exchange rate determination. Answer: The monetary approach is related with the Chicago School of Economics.  It is relies on two

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd