Customersatisfaction–it has been reported that when a customer is satisfied, he islikely to go back and purchase products from the same premise hebought. This is usually regarded as smart business and has remainedto be the goal of most companies around the globe. When customers arehappy they return to make more purchases and equally tell othersabout the positive experience experience they at that particularpremise. Improving customer satisfaction will benefit the society byensuring that it obtains only quality services thus catering for thewell being of the community. The matrix is tied to future risk andfinancial performance in the sense that it would drive an investor tobuy an investment. Customer satisfaction implies loyal customers whodirectly affect the decision of the investor.
Thecash amount charitably invested in the communality-whereas the donations and charity that companies provide to thecommunity have no particular business value in terms of profit, theyindicate the way an organization or corporations relates and engageswit the community. Improving this metric will ensure that thecommunity appreciates the services that the company offers and inturn help in building the company reputation. It is important thatthe organization maintains a good reputation within the location toensure that it obtains the necessary resources for its operations. This metric is tied to the financial performance and risk in thesense that the company needs to factor in its budget and operationsthe allocated amount for CRR or charity.
Energyefficiency-this is regarded as one of the most important metric in relation tothe community and the decisions by the investors. When the energyutilized it efficient, the results include lower cost of productionand less environmental impact. Improving this metric will benefitthe society in that the cost of living will be low or at leastaverage, less environmental impact will be reported, and there willbe efficiency of trade and other services. The metric is tied to thefuture risk and financial performance in that it forms one of thevital factors of production that an organization or investor needs tobe aware of prior to making any investment decisions. The capacity toproduce goods at lower cost due to efficient energy will translate tolower risks.
Boarddiversity-board diversity will benefit the society by ensuring that they have aconsiderable share within the company. The opportunities presented bythe company, which allows for diversity in the board, will give thesociety an opportunity to be part of the company and also part of theownership. This will in turn help the organization raise capital forexpansion or any other use. To the future risk and financialperformance, increased diversity in the board implies widerrepresentation and thus lower risk
Legalactions-improvedlegal actions will benefit the society by providing quick disputeresolution mechanisms. The court processes are usually very long andwhe the legal actions are improved the reduction in the time willguarantee the society better results. To the future risk andfinancial performance, legal matters would be handled efficiently andfaster to minimize delays. The cases that require legal action orlegal advice on the part of the investor or the company will behandled faster to allow the company to run its operations swiftly.
Herman,R. (2010). TheHip Investor.Canada: John Wiley & Sons, Inc.