Please enable JavaScript.

Coggle requires JavaScript to display documents.

Corporations management (social responsible (two views (classical, socio…

- - - - types
        
        Sole proprietor: sole person carrying out some form of business for the purpose of profit-maximization
        
        AD: low cost, 100% access to profits, exclusive decision-making authority, total autonomy and independence, limited need for formal documentation
        DIS: sole responsibility for tasks, skills limited to owner-labour intensive, poor economies of scale, unlimited liability
        
        Partnership: a business relationship established between two or more persons for the purpose of profit maximization
        
        AD: greater capital, breadth of skills & abilities, 100% access to profits & losses shared among st partners, tasks can be divided between partners, limited need for formal documentation
        DIS: decisions by consultation, limited independence, risks associated with exit of partners, unlimited liability
      - organisations that are not recognized on their own as a legal entity-unlimited liability
    - - Organisations that are recognized on their own as a legal entity-limited liability.
        Reason need to limit liability is that firstly, to grow greater investment is needed and second to entice investors, personal liability must be limited to value pf investment
      - How does limited liability work
        
        1, value of business broken into shares
        2, agents of organisation look after shareholder interest
        3, liability associated with losses incurred as a consequence of organisational failure limited to organisational assets
      - types&
        pros,cons
        
        Private limited: shares owned by private individuals, not available to public, to purchase shares need to directly approach an existing shareholder, often requires consent from other shareholders
        
        Public limited: anyone can purchase shares through a stock exchange, often a consequence of growth, change from private to public referred to as an organisation being floated
        
        AD: limited liability, access to greater capital
        DIS: legal constraints and procedures, weak asset base could limit funding sources, investors not entitled to 100% of profits
  - - - Require revenue,
        incur expenses,
        consists of people,
        produce a product or service,
        strive to satisfy consumers,
        must be managed,
        management skills and techniques often transferable across the two sectors
    - - charities
        
        primary objective to provide a product/service for a target group-not to extract profit
        
        profit=surplus, losses=deficits, tax exempt
        
        staffing
        
        paid staff, market rates
        
        paid staff, below market rates
        
        volunteers
        
        operate on a lower cost base than for-profit enterprises
      - government organisations
        
        funded through taxpayer revenue
        
        exists for taxpayers' benefit
        
        generally supplies goods/services that cannot or unlikely to be supplies by the private sector(public goods: defense,transport infrastructure, merit goods: health services)
        
        not designed for profit maximisation but value maximization
        
        each ministry,department,and local authority given strict budget
        
        increases in productivity key to success
- - - - it can affect organisational outcomes, such as improved predictability of changes, more successful innovations, greater trust and flexibility, organisational performance
- - - - employee
      - constituents in the specific environment
      - owners and management
      - broader society