It is important that performance measures are set to encourage the long term growth of the company. A focus on short term profit could result in risky and dysfunctional behaviour.  

The government is also interested in many other aspects including price stability, economic growth and compliance with laws.   

Companies have a range of stakeholders, all of which can affect the company and should be considered. Some of these stakeholders are external such as the government, the general public and pressure groups.