Non-Financial Analysis
Non-financial information is significant in order for the organization to measure and evaluate their performances every year. The information obtained from non-financial analysis allowed the company to make decision with the aid of other information as well. For example, information such as financial and non-financial analysis play important role for the management team to make their decision whether to invest in the company or not. There are many ways to measure a non-financial performance of an organization. Customer’s satisfaction on the products offered, employee’s satisfaction, product safety, executive’s compensation, etc., are the different aspects that a company may look into it for the evaluation of their performances.
Non-financial analysis also is referred to:
social accounting
corporate social responsibility reporting
environmental reporting
sustainability reporting
service performance reporting
integrated reporting
Sime Darby Berhad prepare a Sustainability Report from year to year to be referred by the external users. The report evaluate the performance of the organization from 1 July 2012 to 30 June 2013 (financial year 2013). The users may obtain the non-financial analysis from the report.
From the property aspect of Sime Darby, their main key of activities are property development and property invest operating mainly in Australia, Malaysia, Singapore, United Kingdom and Vietnam. In Malaysia, Sime Darby operate in the leading commercial, hospitality and leisure asset.
Figure 1 The above chart illustrates the Sime Darby’s business practices.
Core values, business principles and sustainability principles are the business practices carried out by Sime Darby. There ...
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...e_Darby_AR2013_Lowres.pdf (Accessed 12 May 2014)
Sime Darby. 2012. A World of Infinite Possibilities Annual Report 2012. Sime Darby : Developing Sustainable Futures. http://www.simedarby.com/downloads/pdfs/SDB/Annual_Report/Sime_Darby_AR2012_Lowres.pdf (Accessed 12 May 2014)
Sime Darby. 2011. Sime Darby Corporate Governance. Sime Darby : Developing Sustainable Futures. http://www.simedarby.com/upload/Sime_Darby_Corporate_Governance.pdf (Accessed 12 May 2014)
Sime Darby. 2013. Sime Darby Sustainability Report 2013 A Deep Dive Into Plantation. Sime Darby : Developing Sustainable Futures. http://www.simedarby.com/upload/Sime_Darby_Sustainability_Report_2013_Low_res.pdf (Accessed 12 May 2014)
Sime Darby. 2013. Sime Darby - Corporate Social Responsibilities. Sime Darby : Developing Sustainable Futures. http://www.simedarby.com/cr/Home.aspx (Accessed 12 May 2014)
Wheelen, T. L., & Hunger, J. D. (2010). In Concepts in Strategic Management and Business Policy Achieving Sustainability, Twelfth Edition. Pearson Education.
7. Elgie, Stewart, and Jennifer Wesanko. "SP Updates." Sustainable Prosperity. 24 July 2013. Sustainable Prosperity. 11 Mar. 2014 .
Windsor, D. (2001). The future of corporate social responsibility. International Journal of Organizational Analysis, 9 (3): 225-256.
After a thorough examination into BP’s numerous strategies, further analysis into the company’s strengths, weaknesses, opportunities, and threats (SWOT) provides an overall performance level regarding the outcomes of their CSR and sustainability goals. Drag and Zimnol (2014) stipulated a SWOT analysis can provide structure to the internal and external factors affecting the company’s current and future outlooks. Additionally, a SWOT analysis can generate context regarding the company’s current relationship with the environment, which can portray the ways to both reduce environmental impact and regenerate damaged communities (Drag & Zimnol, 2014). Therefore, evidence suggests that although BP displays admirable strengths capable of maintaining
There are many ways to analyze the performance of a company, some more popular than others. According to the Barney text the accounting method is the most popular way of measuring a firm's performance (Barney, 2002). Some of the reasons for the popularity could include the fact that accounting measures of performance are publicly available on many firms and they communicate a great deal of information about a firm's operations. Other methods of performance analysis include firm survival and the multiple stakeholder approach.
He was recently appointed as editor for the On Sustainability which is one collection of 77 international journals published by Common Ground Publishing. The has served as an advisor to the World Commission on Forests and Sustainable. Development, is a member of the OpenSpace Research Centre (Open University 's (OU) Centre for Geographical and Environmental Research). The OU is a virtual campus based in Northern Ireland, Republic of Ireland, Scotland and Wales. The vast knowledge this author possesses will assist in writing a fact-based
The report will give an overview of each company, an explanation of what type of companies we are analyzing, the purpose of each company in terms of its goals and objectives, the products and services each company produces, and what future prospects we see these companies having. The reader should gain an understanding of each company as well. We also analyze the type of industry these companies are competing in. This will help us understand where each company fits in the marketplace. This is important because it places the two companies into a broader picture. The most important part of the financial report is the financial statement analysis. In this, the annual report of each company was analyzed. It studies the firms’ past earnings to understand their operating performances. It also forecasts future profitability and risk (short-term and long term). The financial statements give information on how these risks affect expected return. In the end, the reader will have an understanding of the two companies, the industry in which they operate, its financial standing in the past and present, and future profitability.
There is a link between corporate social responsibility and the key principles of the stakeholders, which a company should follow to be responsible to its stakeholders. The first stakeholder is environment and the key principle used for it is not damage the environment for example, recycling, dealing correctly with their wastes and emissions. The second stakeholder is the employees. The key principle for the employees is companies providing safe and health working conditions for their staff. Moreover, the employees earn an appropriate salary for ...
PwC also offers services on sustainability reporting. They will asses any existing process/ procedures and reporting mechanisms of an organization, then give guidance in achieving more effective reporting on internal and external sustainability issues. They believe that effective reporting to stakeholder is crucial. Reports are created to show environmental, social, ethical and economic performances of the organization. PwC also provides a service of independent assurance on the quality of these reports.
...ds the environmental reports, sustainability reports- its role towards the society, Employees, resources and reserve current conditions. The company has successfully played the role of CSR by providing internal as well as external assurance to stakeholder groups by perfect disclosure of its action and its effect towards environment through “Corporate Governance Statement” in its annual report. According to BHP Billiton Annual report 2013, “our purpose is to create long-term shareholder values through the discovery, acquisition, development and marketing of natural resources”. It focuses on creation of values, targeting on Sustainability, Integrity, Respect, Performance, Simplicity and Accountability. The company aim to get successful relation between company’s stakeholder by incorporating updated social and environmental accountability. (BHP Billiton Limited, 2013).
Reed, B. (2011). The Business of Social Responsibility. Retrieved from Dollars and Sense Real World Economics: http://www.dollarsandsense.org/archives/1998/0598reed.html
Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.
Alessia D., Sybil H. and Sue F. (2007). Corporate Social Responsible and Sustainable Business, page: 88–89.
Harris. J.M. 2000 Basic Principles of Sustainable Development, Global and Environment Institute Working Paper 00-04, USA
Sustainability simply defined to me as balancing act between the development of sustainability is necessary for both planet Earth and humans to survive. This is reinforced in the World Commission on Environment and Development report (1987) that sustainable development must meet the needs of the present without compromising the well-being of future generations”. The Earth Charter Organization widened the idea of sustainability to respect for a culture of peace, universal human rights, nature, and economic justice (What is sustainability?, n.d.).