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GLOSSARY
Corporate social responsibility (CSR)
This is an organization’s decisions and actions that impact society in a positive way.
Ethical code of practice
The formal documented philosophies and values of a business, so that stakeholders know what is considered acceptable or not acceptable within the organization.
Ethical objectives
Organizational goals based on moral guidelines that determine decision-making.
Ethics
These are moral guidelines or codes of practice which govern good organizational behaviour.
Mission statement
A succinct and motivating declaration of an organization’s purpose of existence, who they are, and what they do.
Objectives
These are the clearly defined targets of a business in order to achieve its aims. They are often based on the SMART acronym – specific, measurable, agreed, realistic and time specific.
SMART objectives
Peter Drucker’s framework for setting organization objectives, which should be specific, measurable, agreed (or achievable), realistic (or relevant), and time bound.
Strategic objectives
The long-term goals of a business, which could include profit maximization, growth, and increased market share.
Strategies
The various long-term plans of action and approaches used by a business to achieve its goals.
Tactic
The short-term methods, often on a daily basis, used to implement business strategy.
Tactical objectives
The relatively short-term and specific goals of a business. These targets are used to guide the daily functioning of the organization.
Vision statement
An inspiring declaration of what an organization ultimately strives to be, or to achieve, in the distant future.
EXAM PRACTICE
Activity 1.3 G STS Plc.pdfMission Statement:
Definition: A mission statement outlines the fundamental purpose of an organisation. It describes the organisation's core values, goals, and the primary reason for its existence. Mission statements focus on the present and answer the question, "What do we do today?"
Vision Statement:
Definition: A vision statement articulates the long-term aspirations and future direction of the organisation. It communicates what the organisation aims to achieve in the future. Vision statements are forward-looking and answer the question, "Where do we see ourselves in the future?"Vision statements are often broader, inspirational, and provide a sense of purpose.
Comparison:
Both statements are essential components of organisational identity.
Both written by senior management or the board.
Contrast:
Mission statements are more grounded in the current state and practical aspects of the organisation.
Vision statements are more aspirational, focusing on the desired future state and broader impact.
Tactical Objectives and Strategic Objectives:
Tactical Objectives:
Definition: Tactical objectives are short-term, specific, and measurable goals that contribute to achieving overall strategic objectives.Tactical objectives are usually associated with shorter time frames, often within a year.They are concerned with day-to-day operations and are more detailed and specific.
Strategic Objectives:
Definition: Strategic objectives are long-term, high-level goals aligned with an organisation's mission and vision. Strategic objectives often span multiple years and guide the organisation's overall direction.They are broad, overarching goals that guide decision-making at the organisational level.
Comparison:
Both types of objectives contribute to achieving the organisation's goals.
Tactical objectives are the means to achieve strategic objectives.
Contrast:
Tactical objectives are more detailed and specific, focusing on immediate actions.
Strategic objectives are broader, emphasising the overall direction and purpose of the organisation.
Business Objectives of Growth and Profit
Growth Objectives:
Definition: Growth objectives involve increasing the size, scale, or scope of the business. This can include expanding market share, entering new markets, or introducing new products/services Growth objectives emphasise expansion and development.
Profit Objectives:
Definition: Profit objectives focus on achieving financial success and profitability. This involves optimising revenue, managing costs, and maximising profits. Profit objectives prioritise financial performance and stability.
Comparison:
Both growth and profit objectives are fundamental to a business's success.
Achieving growth often contributes to increased profitability.
Contrast:
Growth objectives focus on expansion and development, which may involve accepting lower profits initially.
Profit objectives prioritise immediate financial gains and may involve maintaining or optimising current operations.
Shell, a company with traditionally one of the worst reputations among environmental and social pressure groups, has made enormous efforts to reinvent itself as a socially responsible business. It has stated its aims as nothing less than to become “The leading multinational in economic, social and environmental responsibility”. Shell’s chairwoman has said that the reason for Shell’s conversion to environmental protection is: “We won’t achieve our business goals unless we are listening to and learning from the full range of stakeholders in society.”
Discuss the likely cost and benefits for Shell of the company working towards being seen as ‘the leading multinational in economic, social and environmental responsibility’.
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