Stakeholders, Governance & Ethics Flashcards
(23 cards)
What is an organisations purpose?
Why the organisation exists and who it makes a difference for.
App* Use this to define long-term direction and alignment with stakeholder needs
What is a mission statement?
It describes what the organisation does, who for, and how
What are an organisations values?
Core principles guiding how it operates
App* Values influence decision-making & culture
What is a vision statement?
What the organisation aims to achieve when its purpose is fulfilled
*Mnemonic: PVV - Purpose (why), Vision (future), values (how)
What is a SMART objective?
Specific, Measurable, Achievable, Realistic, Timely
Who are stakeholders?
Anyone affected by or affecting the organisation
What are the 3 types of stakeholders?
Internal eg. employees
Connected eg. customers
External eg. government
What is the key challenge in stakeholder management?
Conflicting interests between stakeholders eg. profit vs wages
What is stakeholder mapping used for?
To identify the level of power & interest of each stakeholder
What is Mendelow’s Matrix?
A tool to classify stakeholders by Power & Interest (High/Low)
Who are they key players in Mendelow’s Matrix?
High power, high interest - must keep satisfied
What stakeholders fall into ‘keep informed’
Low power, high interest - communicate updates
Who requires minimal effort?
Low power, low interest stakeholders
What’s the strategy for ‘keep satisfied’ stakeholders?
Maintain good relations, monitor for changes
Mnemonic: SKIM - Satisfied, Key, Informed, Minimal effort
What is the purpose of corporate governance?
To monitor those who control and use organisation resources
What are the objectives of corporate governance?
Improved accountability & performance
What are the 4 key elements of governance?
Risk management, supervision, ethics, accountability
App* Essential in regulated industries like banking or healthcare
What’s an example of poor governance consequences?
VW emissions scandal - failure in ethical oversight
What is meant by ethical strategy execution?
Implementing strategy in a responsible, fair and legal way
What are 3 core responsibilities of directors?
Set purpose, lead by example, ensure resources meet objectives
How do directors promote ethical culture?
By leading with integrity and setting tone from the top
What control responsibility lies with directors?
Establishing frameworks to assess and manage risk
How do directors measure strategic success?
Evaluating performance against objectives (KPIs)
