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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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.
Looking at the financial reports of a company for the first time can be overwhelming if not intimidating. Analyzing the financial reports to determine the health of a company is much that same but different aspect must be looked at properly in order to predict and assess the health and wellness of a company. The different aspect in assessing the health of a company include the depreciation analysis, stock analysis, cash flow statement analysis, income statement trend analysis, management analysis, significant changes and possible reasons for the changes and implications of change.
7. Elgie, Stewart, and Jennifer Wesanko. "SP Updates." Sustainable Prosperity. 24 July 2013. Sustainable Prosperity. 11 Mar. 2014 .
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
The concept of ‘Just Sustainability’ incorporates not only environmental sustainability but also a need to strive towards social justice and equity. According to Agyeman sustainability is “the need to ensure a better quality of life for all, now and into the future, in a just and equitable manner, while living within the limits of supporting ecosystems.” (Agyeman et al. 2003 as cited in Agyeman 2005: 43) Both the desire for sustainability and development can be cause for many social justice and human equity issues, but in order to fulfil the idea of ‘Just Sustainability,’ all of these things need to be taken into account. (Agyeman 2005: 43) An example of how social justice and equity needs to be addressed alongside a sustainability plan for the environment is the deforestation of rainforests in Indonesia.
In every business industry one must consider the importance of financial and non-financial measures, which provides benefits in order to accomplish primary organizational objectives. The success of the workforce depends mostly on how mangers and employees measure their financial and non-financial performances. To be able to comprehend the concept of how businesses attempt to achieve organizational aims, one must define financial performance, which is ‘a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues’ (http://investopedia.com/). Many examples come with such a concept, including how businesses take into account the cash flow, income and total unit sales, and look into financial statements, declining debt, balance sheets and price earnings. As such, non-financial performance must be defined as well, and it is indicated as ‘any quantitative measure of either an individual’s or an entity’s performance that is not expressed in monetary units’ (http://lexicon.ft.com/). For example, the rate of employee or costumer satisfaction, the quality of products and goods produced, and the market share are taken into consideration. Finally, organizational objectives could be defined as ‘the overall goals, purpose and mission of a business that have been established by its management and communicated to its employees’ (http://www.businessdictionary.com/). The purpose of this essay is to discuss and analyze the importance of financial and non-financial performances that international business organizations operate in, for the sake of attaining organizational goals and boosting the overall performance of the workforce. This will be done by using American Multinational Corporations. Such as,...
An increasing large number of firms are developing mission statements that also attempt to define the social and ethical boundaries of their strategic domain. Some firms are actively pursuing social programs they believe to be intertwined with their economic objectives, while others simply seek to manage their businesses according to the principles of sustainability – meeting humanity’s needs without harming future generations. For example, Unilever has launched a variety of programs to help developing nations wrestle with poverty, water scarcity, and the effects of climate change. The firm’s motives are at least as much economic as moral. As environmental regulations grow stricter around the world, the firm must invest in green technologies or its leadership
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.
Sustainability must be defined to include meeting human physical, emotional and social needs (Rogers et al. 2012) and scholarly research and thinking on well being and its connection to the environment, sustainability, growth and sustainable development considers aspects that move towards social and environmental benefits . While environme...
Sustainability is a concept with a diverse array of meanings and definitions – a widely used glamorous, ambiguous, ambivalent and vague concept that is used by different stakeholder groups in various ways. Presumably to avoid noodling over a terminology or to avoid the confrontation with a definition, most widely the concept is broken down a planning process (c.f. e.g. Döring & Muraca, 2010). That is why most common sustainability is understood as sustainable development.1
...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).
Hughes, R. 1998. Environmental Impact Assessment and Stakeholder Involvement. International Institute for Environment And Development. Environmental Planning Issues No. 11
Alessia D., Sybil H. and Sue F. (2007). Corporate Social Responsible and Sustainable Business, page: 88–89.
In the past, the company performance was measured by asking ‘how much money the company makes?’ To a certain extent, they are right because gross revenue, profitability, return on capital, etc. are the results that companies must bring to survive. Unfortunately, in today business if the management focuses only on the financial health of the company, numerous unwanted consequences may arise.
| UWS | University of the West of Scotland. (2017). Sustainability. [online] Available at: https://www.uws.ac.uk/about-uws/uws-commitments/sustainability/ [Accessed 5 Dec. 2017].