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

A company has total debt , A company has total debt of $1,200 and a debt-eq...

A company has total debt of $1,200 and a debt-equity ratio of 0.5. What will be  the value of the total assets?

Operating and financial leverage, explain the significance of operating lev...

explain the significance of operating leverage and financial with the help of example?

#titApplicability of an operating cycle, Discuss the applicability of an op...

Discuss the applicability of an operating cycle in cabbage growing business in Uganda.

Contrast a benefit and a defined contribution pension plan, Compare and con...

Compare and contrast a defined benefit and a defined contribution pension plan. In defined benefit plan retirement remuneration are determined by a formula that typically

Difference between a parallel loan and back to back loan, Describe the diff...

Describe the difference between a parallel loan and a back-to-back loan. Answer:  A parallel loan contains four parties.  One MNC (multinational company) borrows and re-lends to

Describe duties of the financial manager in a business firm, Describe the d...

Describe the duties of the financial manager in a business firm? Financial managers evaluate the firm's performance, determine what are the financial consequence will be if the

What is disadvantages of irr method, Q. What is Disadvantages of IRR Method...

Q. What is Disadvantages of IRR Method ? Disadvantages of IRR Method:- (i) Computation of IRR involves tedious calculations. (ii) Occasionally this method produces more t

Conversion ratio, It is the number that tells how many common stock...

It is the number that tells how many common stocks (or preference stocks) will the bondholder receive at the time of conversion. It is usually constant over

Bond-equivalent yield, Normally, the cash flows from mortgage backed ...

Normally, the cash flows from mortgage backed and assets-backed securities are obtained on monthly basis. Therefore, the yield calculated would be on a monthly ba

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