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

Case study - japanese loans and forwards, Japanese banks borrow in yen and ...

Japanese banks borrow in yen and purchase spot dollars from their Western counterparties. Therefore the Western banks are left holding the yen for the time of the loan (three month

Enumerate about the turnkey operations, Enumerate about the Turnkey operati...

Enumerate about the Turnkey operations An illustration of a turnkey business would be a franchise for example immediate brand, systems and product with exclusive territory. A t

MM., What are the assumptions of MM(Modigliani Miller) approach?

What are the assumptions of MM(Modigliani Miller) approach?

Unemployed loans, where can i found a loan if i am unemployed ?

where can i found a loan if i am unemployed ?

Enumerate the cash flow statement analysis, Cash flow statement analysis ...

Cash flow statement analysis Cash flow statement is a primary financial statement and shows cash generating ability of the organisation. Cash generated from operations can b

Calculate the percentage of price change and regular bonds, Flying High Inc...

Flying High Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will ha

Documenting the accounting system, Documenting the accounting system Th...

Documenting the accounting system There are 3 methods generally used to document the clients system. Narrative notes: Written description of the system Advantages:- C

Cost of preference equity-irr , 1.  Find out the present value of Rs. 10,00...

1.  Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%. 2.  A Firm can invest Rs. 10,000 in a project with a life of three years.

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