1.3-1.4 IB Business Management

Corporate Social Responsibility (CSR)

The conscientious consideration of ethical and environmental practices related to business activity. A business that adopts CSR acts morally towards its various stakeholder groups and the wellbeing of society as a whole.

ethical code of practice

The documented beliefs and philosophies of an organization, so that people know what is considered acceptable or not acceptable within the orginization.

ethical objectives

Organizational goals based on moral guidelines that direct and determine decision-making.

Ethics

the moral principles that guide decision-making and business strategy

mission statement

The declaration of an organization's overall purpose. It forms the foundation for setting the objectives of a business.

objectives

specify what an organization strives to achieve. They are goals of an organization, such as growth, profit, and protecting shareholder value.

strategic objectives

Longer-term goals of a business, such as profit maximization, growth, market standing and increased market share.

strategies

the various plans of action that businesses use to achieve their targets.

tactical objectives

short-term goals that affect a unit of the organization. They are specific goals that guide the daily functioning of certain departments.

tactics

Short-term plans of action that businesses use to achieve their objectives

Vision Statement

An organization's long-term aspirations, i.e. where it ultimately wants to be.

conflict

situations where stakeholders have disputes or differences regarding certain issues or matters. this can lead to arguments and tension btwn various stakeholder groups.

customers

the clients of a business. (key external stakeholders - seek to have competitive prices and good quality products)

directors

senior executives who have been elected by the company's shareholders to direct business operations on behalf of their owners

employees

the staff of an organization. They are stakeholders.

external stakeholders

individuals and organizations not part of the business but have a direct interest in its activities and performance

financers

the financial institutions and individual investors who provide sources of finance for an organization. They are interested in the organization's ability to generate profits and to repay debts.

government

the ruling authority with a state or country

internal stakeholders

of a business are members of the organization, e.g. the employees, managers, directors and shareholders of the organization.

local community

The general public and local businesses that have a direct interest in the activities of the organization. They are interested in the firm's ability to create jobs and to operate in a socially responsible way.

managers

internal group of stakeholders responsibly for overseeing the daily operations of the business

pressure groups

individuals with a common concern who seek to place demands on organizations to act in a particular way or to influence a change in their behavior

stakeholder conflict

to differences in the varying needs and priorities of the various stakeholder groups of a business

stakeholder mapping

A model that assesses the relative interest of stakeholders and their relative power

Shareholders

the owners of a limited liability company (individuals/organizations)

Stakeholders

individuals or organization with a direct interest in the activities and performance of a business

Suppliers

external stakeholder group that provide a business with stocks of raw materials, component parts and finished goods needed for production