Non-financial objectives of a firm

  

Date Posted: 9/1/2012 9:21:05 AM

Posted By: Viona  Membership Level: Silver  Total Points: 879

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All organizations must have non-financial objectives which would normally affect achievement of financial goals. These include:
1. Welfare of employees. A firm should make good remuneration to the human resource. This may involve provision of good training to employees as well as career development skills.
2. Welfare of the management. Improving management's welfare may include providing good salary packages, enrolment to entertainment facilities and provision of good transport mechanism.
3. Welfare of society. Organizations do not operate in a vacuum. Therefore, firms must be involved in social activities for the benefit of the society.
4. Welfare of the government. Firms should pay taxes to the government and adhere to the rules of the country.
5. Welfare of customers and suppliers. An organization should always satisfy customers and suppliers since they are the main stakeholders of the organization.
6. Business ethics. Firms should practice human behaviour which is acceptable and considered ideal. For example, firms ought to practice healthy competition.

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