1.3 - Business objectives

Question 1

Corporate Social responsibility (CSR)

Answer 1

The conscientious consideration of ethical and environmental practice related to business activity. A business that adopts a CSR acts morally towards all of its various stakeholder groups and the well-being of society as a whole.

Question 2

Ethical code of practice

Answer 2

The documented beliefs and philosophies of an organisation, so that people know what is considered acceptable or not acceptable within the organisation.

Question 3

Ethics

Answer 3

The moral principles that guide decision-making and business strategy. Morals are concerned with what is considered to be right or wrong, from society’s point of view

Question 4

Mission statement

Answer 4

The declaration of an organisation’s overall purpose. It forms the foundation for setting the objectives of a business. Focuses on here and now

Question 5

Objectives

Answer 5

Specify what an organisation strives to achieve. They are the goals of an organisation, such as growth, profit, protecting shareholder value and ethical objectives

Question 6

Strategic objectives

Answer 6

Are the longer-term goals of a business such as profit maximisation, growth, market standing and increased market share.

Question 7

Strategies

Answer 7

Are the various plans of action that businesses use to achieve their targets. They are the long-term plans of the organisation as a whole

Question 8

Tactical objectives

Answer 8

Short-term goals that affect a unit of an organisation. They are specific goals that guide the daily functioning of certain departments or operations.

Question 9

Tactics

Answer 9

The short-term plans of action that businesses use to achieve their objectives

Question 10

Vision statement (e.g BA better world)

Answer 10

Is an organisation’s long-term aspiration i.e where the business ultimately wants to be.