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Valuing People in Financial Statements - Essay Example

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Author : mchamplin

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Valuing People in Financial Statements Introduction The success of a company is determined by various factors. Product and the social influence of a company are some of the factors that determine the success of a company. The significance of customers to companies has made most business consider them as their most valuable assets…

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Valuing People in Financial Statements

This is because their respective annual financial reports do not reflect the financial position of the customers to their business. This paper will discuss whether companies should have a financial value for their employees with reference to Mark Spencer’s annual report. Most businesses consider their customer base to be their most valuable asset. This is a myopic consideration since behind every satisfied customer there is a hard working staff who contributed to their satisfaction. This indicates that employees should be beyond the customers of the company since they are responsible for successful products and satisfied customers (Hart, 1995, p. 56). Therefore, the value of employees can be measured from the quality of the products that they are responsible for and, the level of customer’s satisfaction resulting from their efforts. Being of financial significance indicates that workers are assets to the company and the company has the responsibility to account for them. Companies consider their workers as expenses due to the salaries that they receive at the end of the month or the end of a given trading period. In this case, workers would appear in the right hand side of their balance sheet. ...
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