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Chapter 1

4.3 Non-financial objectives of for-profit entities

A for-profit entity’s non-financial objectives will be set to satisfy the other
stakeholders, such as employees, customers and the local community.

However, note that achievement of non-financial objectives can improve the image of
the entity, and can have a knock-on effect on sales/profitability to help to create
additional wealth for shareholders in the longer term.

Categories of non-financial objectives in for-profit entities:
 Human

e.g. reduce staff turnover

 Intellectual

e.g. improve the brand recognition

 Natural

e.g. reduce the level of pollution, increase the amount of recycling

 Social

e.g. to make sure 50% of employees live within 5 miles of the premises

 Relationship

e.g. to offer all suppliers longer term contracts and to pay them on time

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