Organisational objectives
CHAPETR 3
SETTING THE SCENE
page 22
1. What was their first business Objective?
2. What did June want as a business objective?
3. What did Will want as a business objective
4. Why were they wanting to change their objectives over time
SMART objectives
S
M
A
R
T
pecific
easurable
chievable
ealistic
ime-constrained
Make this a SMART objective:
“We will make our sandwich
shop better than McDonalds”
Mission + Vision = Aim
A statement of the
business’ aims phrased in
a way to motivate
employees and look
appealing to external
A one sentence
Long term goals
explanation of
the business
why the
wants to
company exists
achieve
people
Complete activity 3.1 (page 25)
Types of Aims
Growth
Increase market share
Survival
Maximise sales revenue
Ethical aims
Corporate Social Responsibility
BP Oil spill 2010
16,000 miles of coastlines was
polluted (the equivalent of the
whole Australian coastline)
BP Set aside $20bn to clean
the affected areas (BP made
$24bn profit last year)
BP spent $32m on converting it’s logo, but only spent $7m on
researching cleaner / renewable fuels. The new logo
represents BP’s environmentally friendly approach to the
environment
Sweatshops in India, Pakistan
and Cambodia have been using
workers under the legal working
age (some as young as 6) to make
clothing, which is then shipped
to Nike stores in the West.
Nike now guarantee that all their
products are made by people of
legal working age and are paid a
fair wage. However is this really
CSR?
Nike
It is cheaper for the NHS to
ship old computers to Ghana
than to have them destroyed in
the UK.
Poor people (often children)
roam the dump sites in search
of old computers to burn, to
gain access to precious metals
inside, releasing cancerous
chemicals.
Ethics (doing the right thing)
There is no good act
that is truly altruistic
Or is there?
Vote on the follow using RAG
Should
toy
company
Is
Should
Should
it ok aall
sell
the
countries
cigarettes
west
advertise
Is
Even
itthough
acceptable
ifcompulsory
this
products
means
to
to
even
adopt
provide
a
weapons
they
to
are
Is
Should
it acceptable
the they
western
for
Even
when
earn
young
make
doubling
children
redundancies
the
price
so that
of
in
education
the
help
biggest
the
until
Serian
cause
the
age
of
Thai
powers
policestop
to
accept
the
฿10,000
/maximise
month?
they
order
Nike
‘pester’
clothing
to
their
for
ofconflict
16
lung
and
cancer
close
come
down
in
to
the
anall
violence
bribes?
in Seria?
parents
example?
profits?
into buying
sweatshops?
end?
world?
them?
Activity 3.6
•Ethics are moral guidelines to determine
decision making
•Ethical code (code of conduct) a document
detailing a company’s rules and guidelines on
staff behaviour that must be followed by
employees
Key terms
AUDIT – An independent check
Environmental audit – assess the impact of the
business’s activities on the environment
Social audit – assess the business’s impact upon
society.
QUESTIONS
1. Give an example of a SMART objective [5]
2. Why might the objective of maximising profits
conflict with CSR? [4]
3. Why is CSR becoming more and more important for
companies? [4]
4. Why might some firms decide not to act ethically in
a competitive market? [4]