Mgnted32 Exam Chapter 6 Flashcards
means a many-sided figure with no obvious dominant side
Polygon
involving not only profi t and survival but also the motivations of the people involved and the relationship of the organisation with society and the community.
complex and multi-faceted
will also be defined by any specific desire to grow the organisation and by an exploration
of the demands of the environment in which the organisation exists.
Purpose
is a challenging and imaginative picture of the future role and objectives of an organisation,
signifi cantly going beyond its current environment and competitive position. I
Vision
is a phrase that focuses on only the essence of the purpose of the organisation. It
is sometimes phrased in a competitive context.
Strategic intent
is useful as one way of summarising the nature of purpose. But it is not
conclusive and other factors not covered in the list may be more important for some organisations
Polygon of Purpose
are the individuals and groups who have an interest in the organisation and, therefore, may wish to infl uence aspects of its mission, objectives and strategies.
Stakeholders
this can
be positive as well as negative – many organisations will welcome the contributions of and discussions with those who have power.
study covers six stages: identification of stakeholders; establishment of their
interests and claims; estimation of their degree of power; prioritised mission development;
negotiation with key groups; sanctions application where relevant.
Stakeholder power
is the world’s largest financial institution, dealing every day in billions of dollars of banking instruments
such as currencies, shares and bonds.
Citigroup
became the world’s largest bank by a series of
acquisitions and mergers that eventually led the company
itself to redefine its ethics and corporate governance.
Citibank
refers to the influence and power of the stakeholders to control the strategic
direction of the organisation in general, especially the authority of the chief executive and other
senior officers of the organisation.
Corporate governance
is meant the standards and conduct that an organisation sets itself in its dealings within the
organisation and outside with its environment.
By ethics and corporate social responsibility CSR
the process by which managers within an organisation think about and discuss their relationships with stakeholders as well as their roles in relation
to the common good, along with the behavioural disposition with respect to the fulfi lment and and
achievement of these roles and relationships.
CSR Corporate social responsibility
According to this approach, CSR is largely seen as a response to pressures from
stakeholders that are external to the organisation – for example, consumer lobby groups or government organisations putting pressure to adopt policies with regard to global warming or reduce
the cost of AIDS drugs.
Stakeholder driven
Research in this area has focused on measuring the eff ectiveness of CSR actions
in terms of their purpose by the organisation and their impact on the outside world. For example,
research has explored the impact on profi tability.
Performance driven
This approach explores the reasons why organisations undertake CSR. For
example, business may see this as enhancing the corporate reputation, lowering risk and generating customer loyalty. There may also be reasons that are more fundamental relating to the duties
that businesses may have in relation to society at a theoretical and ethical level.
Motivation driven
outlines the broad directions that it should and will follow and
briefly summarises the reasoning and values that lie behind it.
mission of an organisation
are then a more specific commitment
consistent with the mission over a specified time period. They may be quantified, but this may be
inappropriate in some circumstances.
take the generalities of the mission statement and turn them into more specifi c commitments
objectives
is imprecise and difficult to defi ne by its very
nature.
are usually made by senior managers in the company
Business judgement
emphasise the need to set out a mission and objectives for the
organisation for the next few years.
Prescriptive approaches
earnings per share, return on shareholders’ funds, cash flow;
Financial objectives
e.g. market share increase (quantifi ed); higher product quality (quantifi ed);
greater customer satisfaction (partially quantified); employee job satisfaction (supported by
research survey but not necessarily quantified).
strategic objectives
it is particularly important to
recognise that any funds distributed now make it much more difficult to maintain performance
against competitors in the future.
competitive environment
companies need to maintain their dividend record or face the
threat of being acquired
short-termism
