1. Organisational objectives CHAPETR 3

2. SETTING THE SCENE page 22 1.What was their first business Objective? 2.What did June want as a business objective? 3.What did Will want as a business objective 4.Why were they wanting to change their objectives over time

3. SMART objectives S pecific M easurable A chievable R ealistic T ime-constrained Make this a SMART objective: “We will make our sandwich shop better than McDonalds”

4. Mission + Vision = Aim Long term goals the business wants to achieve A statement of the business’ aims phrased in a way to motivate employees and look appealing to external people A one sentence explanation of why the company exists Complete activity 3.1 (page 25)

5. Types of Aims Growth Increase market share Survival Maximise sales revenue Ethical aims

6. Corporate Social Responsibility

7. BP Oil spill 2010 16,000 miles of coastlines was polluted (the equivalent of the whole Australian coastline) BP Set aside $20bn to clean the affected areas (BP made $24bn profit last year)

8. BP spent $32m on converting it’s logo, but only spent $7m on researching cleaner / renewable fuels. The new logo represents BP’s environmentally friendly approach to the environment

9. Nike Sweatshops in India, Pakistan and Cambodia have been using workers under the legal working age (some as young as 6) to make clothing, which is then shipped to Nike stores in the West. Nike now guarantee that all their products are made by people of legal working age and are paid a fair wage. However is this really CSR?

10. It is cheaper for the NHS to ship old computers to Ghana than to have them destroyed in the UK. Poor people (often children) roam the dump sites in search of old computers to burn, to gain access to precious metals inside, releasing cancerous chemicals.

11. Ethics (doing the right thing) There is no good act that is truly altruistic Or is there?

12. Vote on the follow using RAG Should a toy company advertise products to young children so that they ‘pester’ their parents into buying them? Is it acceptable for Thai police to accept bribes? Even when they earn ฿ 10,000 / month? Should the western powers stop the violence in Seria? Should the west provide weapons to help the Serian conflict come to an end? Should all countries adopt a compulsory education until the age of 16 and close down all sweatshops? Even if this means doubling the price of Nike clothing for example? Is it acceptable to make redundancies in order to maximise profits? Is it ok sell cigarettes even though they are the biggest cause of lung cancer in the world?

13. Activity 3.6 Ethics are moral guidelines to determine decision making Ethical code (code of conduct) a document detailing a company’s rules and guidelines on staff behaviour that must be followed by employees

14. Key terms AUDIT – An independent check Environmental audit – assess the impact of the business’s activities on the environment Social audit – assess the business’s impact upon society.

15. QUESTIONS 1.Give an example of a SMART objective [5] 2.Why might the objective of maximising profits conflict with CSR? [4] 3.Why is CSR becoming more and more important for companies? [4] 4.Why might some firms decide not to act ethically in a competitive market? [4]