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

Objective of the business, Q. Objective of the business? Working capita...

Q. Objective of the business? Working capital is needed for the following purposes For the purpose of the raw material, components and spares To pay the Wages and the sal

Illustrate compound value concept, Q. Illustrate Compound Value Concept? ...

Q. Illustrate Compound Value Concept? The Compound Value Concept is used to find out the FV of present money. It is the same as the concept of compound interest, wherein the in

Determine the return on invested capital, 1.      Consider the following tw...

1.      Consider the following two investment alternatives   Net cash flow   End of year Machine A Machine

Firms indifference point, help me withh the calculation concept of the poin...

help me withh the calculation concept of the point where the firm is indifferent

Features and purpose CDs , The distinct features of CDs are: CD is a ...

The distinct features of CDs are: CD is a document of title to a time deposit and is distinct from conventional time deposit with respect to negotiability and marketability.

Define trustworthy collateral from the lenders perspective, What is trustwo...

What is trustworthy collateral from the lenders' perspective?  Explain whether accounts receivable and inventory are trustworthy collateral. Assets which are readily marketable

Exchange rates, Exchange Rates The prices at which one country's c...

Exchange Rates The prices at which one country's currency can be changed into that of other country. Although perceptions in the currency markets of the privacy of a count

Explain the npv criterion, Consider that you are deciding whether to undert...

Consider that you are deciding whether to undertake one of two projects. Project A involves buying expensive machinery which will produce a better product at a lower cost. The mach

M.r, capital structure

capital structure

Describe the interest rate parity theory, Question: (a) Describe the In...

Question: (a) Describe the Interest Rate Parity Theory. (b) A company needs to pay in 3 months USD 1 million. The USD are already at disposal in the company, thus the c

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