New Developments in Measuring Corporate Performance

Abstract

Value systems in the traditional American business are primarily designed around the profit oriented philosophy. Measures that focus on non‐financial performance are generally pushed aside or ignored. Bonuses and other incentive programmes reward performance for short term quarterly financial results rather than long term overall performance. Performance measures such as customer service, environmental awareness, ethics, citizenship and employee relations have not been widely used to evaluate a firm's performance. Because non‐financial measures are not easily quantifiable, they are considered less important in judging a company. Firms that do track non‐financial areas never give these areas the same weight as financial measures. When conflict arises between the two areas, financial considerations generally prevail.

Citation

Jacobs, W.L. and Kleiner, B.H. (1995), "New Developments in Measuring Corporate Performance", Management Research News, Vol. 18 No. 3/4/5, pp. 70-77. https://doi.org/10.1108/eb028407