THE ROLE OF NON-FINANCIAL FACTORS IN ENSURING AN ADEQUATE FIRM PERFORMANCE MEASUREMENT SYSTEM

Abstract

Performance is one of the main indicators that indicate the level of development of an organization, representing one of the most important variables of analysis and at the same time will remain a topic quite discussed and constantly evolving. The elements of social responsibility found in the sustainable business practices of organizations lead to an evolution of performance towards a global approach that includes both financial and non-financial factors with an impact on the value of organizations. Non-financial indicators are considered to be more forward-looking, better able to predict future performance, better suited to measuring intangible assets and less likely to be manipulated than financial values. The performance measurement system, including non-financial indicators, provides a more comprehensive picture of performance factors as it measures performance beyond financial results. All these aspects led us to establish the respective research objective, to analyze the importance of non-financial performance factors in ensuring an efficient system for measuring organizational performance. The results of the research highlight the fact that most organizations in Suceava appreciate the importance of non-financial factors that lead to performance and create value for the organization.