IB Business 1.3 Quiz Terms

Corporate social responsibility (CSR)

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 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

Moral guidelines or codes of practice that govern good organizational behaviour.

Mission statement

A succinct, motivating declaration of an organization’s purpose of existence—who they are and what they do.

Objectives

Clearly defined targets of a business to achieve its aims, often based on SMART: specific, measurable, agreed, realistic, and time specific.

SMART objectives

Peter Drucker’s framework for setting objectives: specific, measurable, agreed (or achievable), realistic (or relevant), and time bound.

Strategic objectives

Long-term goals of a business, e.g., profit maximization, growth, and increased market share.

Strategies

Long-term plans of action and approaches used by a business to achieve its goals.

Tactic

Short-term methods, often daily, used to implement business strategy.

Tactical objectives

Relatively short-term and specific goals that guide the daily functioning of the organization.

Vision statement

An inspiring declaration of what an organization ultimately strives to be or achieve in the distant future.