An opportunity awaits Chinese business to lead by example in understanding the value of measuring financial and non-financial performance indicators of business health, according to comments made by Deloitte CEO William G. Parrett at the BOAO Forum for Asia. Drawing on the findings of the second edition of the 2007 Deloitte Touche Tohmatsu global survey, "In the Dark II: What many boards and executives STILL don’t know about the health of their business," released yesterday in China, Mr. Parrett said that more than 70 percent of companies worldwide are not yet measuring non-financial indicators of business health. The report suggests this is because companies lack sufficient tools or because such intangible results are not yet embedded into the business operations and governance decision making of companies.
Mr. Parrett said, "China has a unique opportunity to be innovative and lead in measuring non-financial indicators of business health—including corporate social impact—as over time investor demands will move toward understanding a company's overall commitment to its people, community and its bottom line." The results of the second survey indicate that 57 percent of the companies interviewed are under increasing pressure to measure non-financial indicators and more than two-thirds of those surveyed admit they are fair or poor at measuring non-financial performance indicators.
"As the fourth largest economy, China is in a powerful position to make a significant and positive impact," continued Mr. Parrett. "Beijing has pledged to meet World Health Organization standards for urban air quality and is partnering with organizations to use green products as part of the overall 2008 Summer Olympic Games business plan. These efforts can eventually produce measurable value in providing best practices that could be utilized throughout China.
See full Press Release.
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