CIMA F3 Syllabus A. Financial policy decisions - Non-financial objectives - Notes ^{4 / 13}

Non-financial objectives such as

1. Quality measures

2. Innovation measures

3. Customer-based measures

can also be important for a profit-making entity.

A company's non-financial objectives may include the following

• Social and relationship

  Customer satisfaction
  A key target, because of the adverse financial consequences if businesses switch suppliers

  Responsibilities to suppliers
  Not exploiting power as buyer unscrupulously

• Natural

  Welfare of society
  Concern for environment

• Human

  Welfare of employees
  Competitive wages and salaries, comfortable and safe working conditions, good training and career development

  Welfare of management
  High salaries, company cars, bonuses

• Intellectual

  Leadership in research and development
  Failure to innovate may have adverse long-term financial consequences.

Key performance indicators (KPIs) are used by management to measure and monitor the company's performance of the non-financial objectives.