SBL Chapter 1-2

Vocabulary flashcards covering core concepts in strategy, leadership styles, organisational culture, corporate governance, CSR models, sustainability, and integrated reporting.

Horizon One

The horizon in long-term strategy that focuses on extending and defending the current business.

Horizon Two

The horizon in long-term strategy involving emerging activities that should provide new sources of future profit.

Horizon Three

The horizon in long-term strategy involving new and risky ventures that might provide returns in several years' time.

Corporate Strategy

The strategic level concerned with the overall purpose and scope of an organisation as a whole.

Business Level Strategy

The strategic level focused on how to compete successfully in a specific market.

Operational Strategy

The strategic level concerned with how the different functional parts of an organisation deliver the overall strategy, such as recruitment, appraisal, and agreeing terms and conditions.

Change Agent

An individual or group that helps to effect and implement strategic change within an organisation.

Transformational Leadership

A leadership style (also referred to as charismatic leadership) that strives for vision, inspiration, and major organizational change.

Transactional Leadership

A leadership style (also referred to as instrumental leadership) that focuses on routine management, systems, and incremental improvements rather than implementing radical change.

Ashridge College Model of Mission

A framework that links business strategy to culture and ethics using four core elements: Purpose, Strategy, Policies, and Values.

Cultural Web

An analytical model used to compare the assumptions (paradigm) of an organisation's culture with its physical and behavioural manifestations.

Paradigm (Cultural Web)

The set of core shared assumptions and collective experiences that are taken for granted within an organisation.

Power Structures (Cultural Web)

The informal and formal configurations of influence in an organisation, not limited to seniority, where groups like technical experts can significantly shape culture.

Agency Monitoring Systems

Mechanisms used by principals to address agency problems, including forming remuneration and succession committees, employing consultants, appointing non-executive directors (NEDs), and questioning the board at the AGM.

Mendelow Matrix (1991)

A stakeholder mapping matrix that classifies stakeholders based on their levels of power and interest to help determine how they should be managed and communicated with.

Key Players (Mendelow)

Stakeholders with high power and high interest who must be closely engaged and actively managed.

Instrumental View of Stakeholders

A perspective where management considers stakeholder interests purely for the economic and financial benefits it delivers to the company.

Normative View of Stakeholders

A perspective holding that an organisation has direct moral obligations to all stakeholders, regardless of whether their concerns drive profits.

Carroll's CSR Pyramid (1991)

A model structuring corporate social responsibility into a hierarchy of four layers, starting at the base with Economic responsibilities, followed by Legal, Ethical, and Philanthropic responsibilities.

Pristine Capitalist (Gray 1991)

A CSR viewpoint arguing that a company has no moral responsibilities beyond serving the financial providers of the firm, making profit maximisation the sole objective.

Expedient (Gray 1991)

A pragmatic stance where social responsibility is only adopted when it aligns directly with the business's own economic and self-interest.

Proponent of the Social Contract (Gray 1991)

A CSR stance based on an implied contract between a company and society, requiring the organisation to act in ways that are acceptable to the community and society.

CSR 2.0 (Visser)

A transformative approach to CSR that advocates for systemic change based on five core principles: Creativity, Scalability, Responsiveness, Circularity, and Glocality.

Weak Sustainability

An environmental perspective focused on sustaining the human race, treating the natural world predominantly as an exploitable resource.

Strong Sustainability

An environmental perspective advocating harmony with the natural world and the preservation and sustenance of all living species.

Social Accounting

The communication of the social and environmental effects of an organisation's economic actions to particular interest groups and society at large.

AA1000 Standard

A sustainability standard established by AccountAbility based on triple bottom line principles, updated in 2018 with a focus on Inclusivity, Materiality, Responsiveness, and Impact.

Integrated Reporting ()

A process founded on integrated thinking resulting in a periodic report communicating how an organisation's strategy, governance, performance, and prospects create value over time across multiple forms of capital.

Six Capitals ()

The forms of capital identified in integrated reporting through which value is created: Financial, Manufactured, Human, Intellectual, Natural, and Social capitals.

Social Audit

The formal process of reviewing and assessing whether an organisation has met its established non-financial and social targets.