Organisational objectives

CHAPETR 3

SETTING THE SCENEpage 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

Specific

Measurable

Achievable

Realistic

Time-constrained

Make this a SMART objective:

“We will make our sandwich shop better than McDonalds”

Mission + Vision = Aim

Long term

goals the

business wants

to achieve

A statement of the

business’ aims phrased

in a way to motivate

employees and look

appealing to external

people

A one

sentence

explanation of

why the

company

exists

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

Nike 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?

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 a toy company advertise products to young

children so that they ‘pester’ their parents

into buying them?

Is it acceptable for Thai police to accept

bribes?

Even when they earn ฿10,000 / month?

Should the western powers stop the

violence in Seria?

Should the west provide weapons to

help the Serian conflict come to an

end?

Should all countries adopt a compulsory education until the age of 16 and close

down all sweatshops?

Even if this means doubling the price of

Nike clothing for example?

Is it acceptable to make redundancies in order to maximise

profits?

Is it ok sell cigarettes even though they are the biggest cause of lung cancer in the

world?

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]