TOPIC 1: VISION AND MISSION ANALYSIS

A company is incorporated by individuals who wish to limit their personal liability and separate and
protect in case of a lawsuit or claims against their business entity. Who own the company per their
individual share, who then have a right in decision making and in profit distributions.

Vision statement: “What do we want to become?” It should be short, should reveal type of business and
as many managers should have input.

Mission statement: ”What is our business?” It’s the reason for being and it is essential for establishing
objectives and strategies. (principles, purpose, creed…)  inspiring, environmentally and socially
sustainable, utility, includes 9 components:

1) Customers (who are they?)

2) Products or services (What are the major ones?)
3) Markets (Where does the firm compete?)
4) Technology (Is it current?)
5) Survival, growth, and profitability (Is it committed to growth and financial soundness)
6) Philosophy (What are the beliefs and ethical priorities of the firm?)
7) Self-concept (Major competitive advantage?)
8) Public Image (Responsive to social, community, and environmental concerns?)
9) Employees (Are they a valuable asset?)

It should allow future growth, get distinguished form other organizations, be stated clearly, identify
clients needs and anticipate them

The process of developing a mission statement should create an “emotional bond” and “sense of
mission” between the organization ant is employees” (Campbell and Yeung)

DO NOT OFFER THINGS, offer attractive looks, a clean and happy place, the pleasure of making…

Stakeholders:

 Employees
 Managers
 Stockholders
 Board of directors
 Customers
 Suppliers
 Distributors
 Creditors
 Governments
 Unions
 Competitors
 Environmental groups
 General public

Business succeed by attracting and keeping customers and they do this by providing better value for
customers than do their rivals firm • Alignment Short-term actions with long- term interests • Provides a
basis for strategy and action • Support the passion behind the company
TOPIC 2: INTERNAL AUDIT
Corporate Governance:

Public companies Shares are sold to their objective is to they are usually
the public or to make a financial managed by
financial return for the owners professional managers
institutions
State-owned enterprises Privatization has They need a financial Organizations owned
reduced their surplus to fund by national or regional
importance investment but also governments
pursue other
objectives in line with
government policy.
Entrepreneurial businesses With growth, more They typically focus Controlled by their
professional on profit to survive funders
managers and and grow but may
external investors also have personal
are required. missions favoured by
the founder(s).
Family businesses Not many Small to medium size Passed from founder
professional generally, retain to descendants
managers, the majority of shares
need to retain
family control may
lead to rejecting
high-risk strategies
or those requiring
substantial external
finance.
Not-for-profit organizations
Employee-owned firms
Corporate governance
 TOPIC 5: ETHICS, SOCIAL RESPONSABILITY and
SUSTAINABILITY
Business Ethics: principles of conduct within organizations that guide decision making and behavior

 Be trustworthy
 Be open-minded
 Honor commitments and obligations
 Do not misrepresent, exaggerate, or mislead
 Be a visibly responsible community citizen
 Utilize your accounting practice to eliminate questionable activities
 Do unto others as you would have them do unto you

Code of Business Ethics: To ensure that the code of ethics is read, understood, believed, and
remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in
which ethics issues may arise. Ethics training programs should include messages from the CEO or owner
of the business emphasizing ethical business practices, the development and discussion of codes of
ethics, and procedures for discussing and reporting unethical behavior.

Whistle-blowing: refers to employees reporting any unethical violations they discover or see in the firm.
Bribery: the offering, giving, receiving, or soliciting of any item of value to influence the actions of an
official or other person in discharge of a public or legal duty. A crime in most countries of the world,
including the United States
Workplace romance can be detrimental to morale and productivity

 favoritism complaints can arise

 confidentiality of records can be breached
 reduced quality and quantity of work could result
 personal arguments can lead to work arguments
 whispering secrets can lead to tensions
 sexual harassment charges may ensue
 conflicts of interest could arise

Social Responsibility: actions an organization takes beyond what is legally required to protect or
enhance the well-being of living things.

Sustainability: the extent that an organization’s operations and actions protect, mend, and preserve
rather than harm or destroy the natural environment.
#dato: Ralph Nader proclaims that organizations have tremendous social obligations. Milton Friedman
asserts that organizations have no obligation to do any more for society than is legally required.

CSR: Corporate Social Responsibility:

1) Laissez faire (executives or small businesses)

-Make profit and provide for the interest of shareholders

-Government are the ones to protect society
-Minimum obligations(pay taxes, profit and provide jobs)
-No additional cost so no social duties

2) Enlightened self-interest
-If good reputation with clients and stakeholders then LT financial success
-Responsible strategies favorable for investments
 -Managers feel the responsibility with society and stakeholders
-Set up systems (ISO 14000) to monitor their SR performance
3) Forum for stakeholder interaction
-Multiple stakeholders interest
-Performance is measured in a pluralistic way
-Sustainability strategy (environment protection, sr, economic)
-SR measured with triple bottom (social and environmental benefits and profits)

4) Shapers of society
- Visionary organizations seeking to change society
-Social entrepreneurs
-Raison d’être (no profits)
-Financially dependent just to pursue the mission