chapter3 bm

Corporate social responsibility is the consensus consideration of ethical and environmental practice related to business activity. A business that adopts CSR acts morally towards all its various stakeholder groups and the well-being of society as a whole. An ethical code of practice is the documented beliefs and philosophies of an organization so that people know what is considered acceptable and not acceptable within the organization. Ethical objectives are organizational goals based on moral guidelines determined by the business and or society which direct and determine decision making. Ethics are the moral principles that guide decision making and business strategy. Morals are concerned with what is considered to be right or wrong from society's point of view. A mission statement refers to the declaration of an organism's overall purpose. It forms the foundation for setting the objectives of a business. Objectives specify what an organization strives to achieve. They are the goals of an organization, such as growth, profit, protecting shareholder values, and ethical objectives. Strategic objectives are the long-term goals of a business, such as profit maximization, growth, market standing, and increased market share. Strategies are the various plans of action that businesses use to achieve their target. They are the long-term plans of the organization as a whole. Tactical objectives are short-term goals that affect a unit of the organization. They are specific goals that guide the daily functioning of certain departments or operations. Tactics are the short-term plans of action that businesses use to achieve the objectives. A vision statement is an organization's long-term aspirations, i.e., where the business ultimately wants to be. Internal factors, those within the control of the organization. External factors, those beyond the control of an organization. Market share business, market share is measured by expressing the firm's sale revenue as a percentage of the industry's total sale. The growth of a business is usually measured by an increase in sales revenue or by its market share. The main business objective of most private sector organizations is to maximize profits.