1. Organizational Objectives

2. The Importance of objectives
Give businesses a sense of direction, purpose and unity
Form the foundation of business decision making
Help to encourage strategic thinking
Provide the basis for measuring and controlling the performance of the workforce

3. Vision statements
A vision statement outlines a business’s aspiration in the distant future
“To be a leading sports brand in the world” is the vision of Adidas
Vision statements relate to attainment of success

4. Mission statements
A mission statement tends to be a simple declaration that broadly states the underlying purpose of an organization.
“To be a world class institution in nurturing the holistic development of our students”
Clearly defined and realistically achievable
Serve to unify all people and corporate cultures within the workforce

5. Vision & Mission statements
Vision statements focus on long term whereas mission statements can focus on the medium or long term
Mission statements are updated more frequently than vision statements
Vision statements do not have actual targets
The mission statement tends to highlight the values of the business

6. Aims Aims are the general long term goals of an organization.
Broadly expressed and unquantifiable statements
Example, ‘to promote social and environmental integrity’
Long term aims are usually set by senior directors of a business

7. Objectives
Objectives are short term and more specific goals of an organization, based on aims.
For example, for a school ‘to achieve 100% pass are IB examination’
Setting objectives may be delegated to senior or middle management

8. Short Term vs Long Term Objectives
Strategy is any plan or scheme to achieve long term aims of business.
Strategy is used for strategic objectives.
Tactics are short-term ways that firms can use to achieve their aims and objectives

9. Short Term vs Long Term Objectives
Strategy is any plan or scheme to achieve long term aims of business.
Strategy is used for strategic objectives.
Tactics are short-term ways that firms can use to achieve their aims and objectives

10. Levels of Strategy
Operational strategies are the day-to-day methods to improve efficiency of an organization
Generic strategies are those that affect the business as a whole
Corporate strategies are aimed at the strategic objectives (long-term) of an organization.

11. Tactical Objectives
Tactical objectives (operational) are short-term objectives that affect a segment of an organization, such a department
Short-term objectives tend to refer to targets set for the next 6-12 months
Example, a tactical objective could to maximize sales revenue

12. Strategic Objectives
Strategic objectives or primary objectives refer to long term aims of business organization
Examples in next slide

13. Types of Objectives
Profit maximise. Some business try to profit maximise.
Growth. Many businesses pursue growth for survival.
Increasing shareholder value. Public listed company run the company to increase share price and dividends.
Image and reputation
Market standing is interlinked with corporate image and reputation of a business.
Sales revenue maximization.

14. The CSR Vineyard You are an analyst with a private equity firm.
For the first time, your firm is thinking of investing in a business with ethical objectives.
Watch the video to know the company better.
Advise your manager whether to invest in this company.

15. The CSR Vineyard

16. Ethical Objectives
Ethics are moral principles that guide decision-making and strategy.
Morals are concerned with what is considered right or wrong from society point of view
Ethical objectives may include:
- Reducing pollution by using environmental friendly production methods
- recycling of waste materials
- disposal of waste in an environmental friendly way
- Offer staff sufficient rest breaks during their
work shift

17. Ethical Objectives Examples of unethical business behaviour
- Financial dishonesty
- Environmental neglect
- Exploitation of the workforce
- Exploitation of suppliers.
- Exploitation of consumers.

18. Ethical Objectives Advantages of ethical behaviour
Improved corporate image.
Increased customer loyalty
Improved staff motivation
Improved staff moral

19. Ways to social responsibility
Providing accurate information and labelling
Active community work
Having consideration for the environment.
Adhering to fair employment practices.

20. Limitations of ethical behaviour
Compliance costs. For example, organic products are more expensive.
Lower profits.
Stakeholder conflict.

21. Corporate Social Responsibility
Socially responsible firms are businesses that act morally towards their stakeholders.
Free market CSR attitude. Many economists argue that the role of businesses is to generate profits
Altruistic CSR attitude. These businesses do what they can to improve the society
Strategic CSR. Business adopt CSR if such actions help them grow.

22. Social Auditing
Socially responsible firms are businesses that act morally towards their stakeholders.
Free market CSR attitude. Many economists argue that the role of businesses is to generate profits
Altruistic CSR attitude. These businesses do what they can to improve the society
Strategic CSR. Business adopt CSR if such actions help them grow.

23. Changes in Corporate Objectives & Strategy (HL)
Internal factors:
Corporate culture – norms and customs of a business and its workforce
Type and size of organization
Age of business – any new business will place break-even and survival as their key objectives
Finance
Risk profile of key stakeholders
Private vs Public organizations

24. Changes in Corporate Objectives & Strategy (HL)
External factors:
State of economy – boom or slump
Government constraints – rules and regulations
Pressure groups – may force business to change through lobbying

25. Changes in Societal Expectation of Business Behaviour
Attitudes towards CSR changes over time.
CSR is a subjective issue – what is right or wrong largely based on public opinion
Pressure groups affect organisational behaviour.
Businesses become more aware of environmental damage