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.