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Running head: NON- FINANCIAL INORMATION
Non-financial information
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NON-FININACCIAL INFORMATION
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When leaders in a company are making a decision, they consider both financial and
non-financial reports for optimal performance of the business. Internal decisions involve
strategies the business will embark to maximize the business profits. Before laying the
strategies, the company will consider areas they feel the company should improve. Areas,
where a business should improve, is reflected in both financial and non-financial reports.
There are various types of non-financial reports the managers should consider to go hand in
hand with the financial reports to make a strategic decision.
Non-financial reports in a firm are all the reports that consider the non-finance aspects
of the business. They include customer satisfaction, employee satisfaction, employees’
appraisals, customer service levels of the firm, feedback from the customers, social
responsibility of the firm, diversity within the organization, environmental impacts, etc. They
assist managers in making informed decisions on the firm while considering all the rules and
regulations of the government. They directly affect financial performance, either directly or
indirectly. It is therefore important to include them when making the decisions.
Customer satisfaction is one of the non-financial aspects of a firm that affect customer
loyalty to the business. Customer satisfaction indicates to the manager how well the firm is
able to provide services to its customers. It answers the question, can the customer can back
for the services? It is important to be aware of customer satisfaction levels as it helps
managers make decisions on where and how they can improve their services. The feedback of
the customers is very key in managers decisions on how ...