Lesson 10º

 

 

 

 

 

 

 

MEASURING PROFIT

 

The profits a company make are not easily measured, so it is difficult for a person or organization to see the results and know how a company is doing financially.

Shareholders can measure the economic profits from their shares. However, it is more difficult for stakeholders to measure the profits, given that they each have different interests in the company, but one common interest - the company's survival.

We are now going to give examples of possible interests of each of the interest groups:

- Clients. They are interested in the products or services becoming more valuable.

- Competitors. They are interested in the company's results, the internal organization.

- Suppliers. They are interested in checking how quickly a company pays.

- Financial entities. They are interested in the company's reliability.

- Non government organizations. - They are interested in the social labour of the company.

- Workers trade union. They are interested in protecting the workers, especially with working conditions.

- Society. The society is interested in knowing what the company can give society: link with activities, respect for the environment....…

- State. The state is interested in the company's profits and the taxes they collect from them.