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

Explain stronger dollar in the foreign exchange market, What kinds of U.S. ...

What kinds of U.S. companies would benefit most from a stronger dollar in the foreign exchange market?  Explain. U.S. companies that import merchandise from other countries wou

What is cash flow criteria, Q. What is Cash Flow Criteria? Cash Flow Cr...

Q. What is Cash Flow Criteria? Cash Flow Criteria: - Cash flow criteria are on the basis of cash flows rather than accounting profit. Cash flow methods are separated into two s

Calculate the price of commonwealth bonds, Calculate the Price of Commonwea...

Calculate the Price of Commonwealth bonds Commonwealth Company has a 10% coupon bond with a par value of $1000, The current yield to maturity on new bonds is 8%. If interest is

Explain how the special drawing rights (sdr) is constructed, Explain how th...

Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer:   SDR was made by the IMF in 1970 as a new r

364-day t-bills, 364-Day T-Bills The Government considered that it is i...

364-Day T-Bills The Government considered that it is important to develop government securities market for monetary control. It also had an intention to ensure that government'

Evaluae new options within current organization, Q. Evaluae new options wit...

Q. Evaluae new options within current organization? Evaluating having completed self marketing successfully to prospective employers it is time to analyze new options within cu

Define discounting the cash flows in the apv model, What is the intuition o...

What is the intuition of discounting the several cash flows in the APV model at fixed discount rates? The APV model is a value-additivity method where total value is defined by t

Types of companies likely to have high operating leverage, Give two example...

Give two examples of types of companies likely to have high operating leverage.Find examples other than those cited in the chapter. Long distance electricity generating compani

Charge for depreciation and amortization, Talbot Enterprises recently repor...

Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was i

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