Unit 1.3 !!! Flashcards
Define Mission statement
A statement of the business’ core aims and purpose
Define Vision statement
A statement of what the company would like to achieve
Define aims
Long-term goals
Set by senior leaders
General and broad – aimed at all in the organization
Define objectives
Short to medium term goals
Specific and timely
Different for each department/division
Set by department in order to meet aims
Define tactics
Short term policy or decision
To solve a problem
Or achieve a part of the strategy
Define strategies
Long term plans of action to achieve aim
Taken by senior managers
For all departments
Define ethical objectives
Ethics are moral principles/guidelines that guide decision making
They determine right or wrong behaviour
Define corporate social responsibility
Consideration of ethical and environmental practices on society in their business practices
Pros and cons of ethical objectives
Pros
Enhances brand image
Differentiation from competitors
Attracting and motivating EEs
Less bad publicity, especially with the rise of the internet
Better relations with stakeholders - e.g. Government, pressure group, social media users
Cons
Increased costs, especially in the short run
Lower profits in the short run may deter investors
And/or higher prices than competitors
Harder to compete in recessions
Increased publicity for unethical behavior
Examples of ethical and unethical behavior
Ethical
Environmental protection
Community work
Fair work practices
No bribes
Unethical
Financial dishonesty
Environmental damage
Exploitation of workforce
Exploitation of consumers - e.g. high prices, gambling
What are the approaches to CSR and Ethical Behaviour
Three attitudes:
Altruistic
People and businesses help society because they want to. It’s not about profit, it’s about helping.
Strategic
CSR can improve long-run profit
Self-interest
Governments and charities are responsible for social problems. Businesses make money
