lesson 1.3 Flashcards
Corporate social responsibility
Different CSR Attitudes:
The self-interest attitude; the role of a business is to generate profit for its owners
The altruistic attitude; do what they can to improve society whether or not their actions help increase profits
The strategic attitude; businesses ought to be socially responsible only if such actions help them become more profitable - CSR as a method of long-term growth
PROS VS. CONS OF ETHICAL BEHAVIOUR
PROS:
Improved corporate image
Increased customer loyalty
Cost cutting; don’t have to spend money on packaging or litigation costs
Improved staff morale and motivation
CONS:
Complaince costs; it costs more to be environmentally friendly!
Lower profits
Stakeholder conflict; they might just want to make money!
Ethics and CSR are subjective
Ethical code of practice
documented beliefs/philosophies of an organization
Ethical objectives
org. goals based on moral guidelines
Ethics
moral principles that guide decision-making and business strategy
Mission statement
declaration of org. overall purpose - helps set org. objectives
Vision statement
long-terms aspirations of the business
Objectives
the goals of org.
Why are objectives important?
Measure and control the performance of a business
Provide motivation; inspires employees to reach a common goal, heping to unify and motivate the workers
Provide direction; provide an agreed clear focus for all individuals inside an organization - they are the foundation for decision making and are used to derive business strategies
factors of changing objectives (internal)
Corporate culture - businesses with a flexible organizational culture are more likely to have innovative objectives over time
Type and size of organization - any change in the legal structure of a business is likely to cause a change in its objectives
Private vs public sector organizations; public sector organizations do not strive for profit maximization but to provide a service to the general public
Age of the business; new businesses - survival / old businesses - growth
Finance - the amount of available finance will determine the scale of a business’ objectives
Risk profile/willingness to take risks
Crisis management/issues
Tactical objectives (short-term) - like survival/sales revenue maximization
short-term goals of org. - usually referring to daily tasks of running business (like buying inventory, cleaning washrooms)
Strategic objectives (long-term) - like brand image/market presence/profit maxxing/growth
long-term goals of org.
Strategies
long-term plans of action to achieve biz objectives
Tactics
short-term plans of action to achieve biz objectives
SWOT
Strengths = internal factors that are favourable compared with competitors; helps the business better achieve its objectives
Weaknesses = internal factors that are unfavourable to when compared with rivals; they create competitive disadvantages
Oppurtunities = external possibilities for future development; changes in the external environment that create favourable conditions for a business
Threats = external factors that hinder the prospects for an organization; they cause problems for the business
ANSOFF MATRIX
SEE DOC FOR MORE!!
An analytical tool that helps managers to choose and devise various product and market growth strategies
RELATED DIVERSIFICATION VS. UNRELATED DIVERSIFICATION
Related = a business caters for new customers within the broader confines of the same industry
Unrelated = growth by selling completely new products in untapped markets
Related diversification = related to what they already to do like coca cola making different types of drinks
Unrelated diversification = unrelated to what they were doing before such as pepsico selling snacks, breakfast products, fast food,and beverages
Samsung makes cargo ships and TVs and lawnmowers
