'Substance Over Form': Meaningful Ways to Measure Organizational Performance
25 Pages Posted: 5 Mar 2018 Last revised: 10 Mar 2018
Date Written: February 22, 2018
A key principle of financial reporting is that substance matters, not form. This is how auditors ensure that a firm will be viable in the future. The authors provide a checklist of goals that an organization should examine in order to determine whether it is investing in the long-run rather than being concerned with short-term goals that only provide the appearance of health. Goals that are crucial for long-term viability include: increasing customer satisfaction; retention of key employees; providing meaningful work; ensuring employee engagement; creation of an ethical tone at the top; and building a strong, positive reputation.
Keywords: substance over form, employee engagement, meaningful work, creativity, tone at the top, brand equity
JEL Classification: D18, E43, G33, M41, G21
Suggested Citation: Suggested Citation