Chapter 4

Question 1

What are the influences on strategic purpose

Answer 1

1. Governance structure
2. Social Responsibility and ethics
3. Stakeholder expectations

Question 2

Mission Statement

Answer 2

provides employees and stakeholdesr with clarity about the overriding purpose of the organization

Question 3

Vision Statement

Answer 3

concerned with the desired future state of the organization

Question 4

Statement of corporate values

Answer 4

communicates the underlying core principles that guide an organizations strategy and operation

Question 5

Corporate Governance

Answer 5

concerned with the systems of control by which mangers are held accountable to those who have a stake in an organization

Question 6

Corporate social Responsibiltiy

Answer 6

is the commitment by organizations to behave ethically and contribute to economic development while improving the quality of life of others

Question 7

Power

Answer 7

the ability of individuals or groups to persuade others into following certain courses of action.

Question 8

Objectives

Answer 8

specific outcomes that are to be achieved. Can be expressed in:

1. Financial terms
2. Market Terms
3. Social terms

Question 9

Why is corporate governance of growing importance

Answer 9

1. separation of ownership and management control
2. Corporate failures and scandals
3. increased accountability to more stakeholders