In today’s complex business environment, organizations must deliver more than profits and value to their shareholders....

In today’s complex business environment, organizations must deliver more than profits and value to their shareholders. Another key focus is non-financial performance. Investing in human and financial resources to develop sustainability strategies is as important. How do companies report on their non-financial performance? Is it as important as the financial metrics?

Expert Solution

Yes non-financial performances are always a key metrics for shareholders because they look for measures such as consumer satisfaction and category ownership and new product adoption rate so, it's not all about profits, and profit margin, earnings per share for everything, that's related to monetary and financial benefit for the shareholders.

Non financial measures can serve as a leading indicators for future financial performance and it can also provide an insight as to organisational impact on shareholders and the society so there can be a sustainable indicator for providing deeper insightel for Inner working of business and the beauty of non Financial matrix is that it could be used in understanding occurrence of different events which could be non financial in nature.

there are various types of non-financial key metrics that can be used for consumers like consumer satisfaction, companies reputation and innovation so these all will lead to greater impact on the companies sustainable growth in the long run.

This must be reported by the company in form of shareholders wealth analysis and human resource analysis.this can also be reported in form of environmental accounting and environmental costing.

jeff jeffy answered 1 year ago

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