Planning and Corporate Responsibility
why study planning
come up with alternative methods and understand limitations of a planning method
methods of planning reflect beliefs about the process and context of managing
purpose of planning
motivate
use resources effectively - reduce overlap
clarify direction
as a ritual - give appearance of being rational
to measure progress - goals, targets, times, enable monitoring
Contents of plans
strategic or operational
long or short term
corporate
process of planning
setting goals
deciding how to achieve goals
gathering information
implementing the plan
monitoring and revising
on competitive and general environments
internal sources
external sources
Planning techniques
forecasting
sensitivity analysis
SWOT analysis
scenario planning
put in a hierarchy and use as reference point for other decisions
motivational
SMART
the means - in steps
managers experience of the issue important
readiness of the organisation to change
implementing plan tests accuracy of assumptions and methods
change if necessary
why study corporate responsibility
managers face ethical and commercial dilmmas
expectations change, need to adapt
corporate practice affects wider society
Contrasts in business practice
Philanthropy and enlightened self interest
Malpractice
Madoff - taking money from people to invest, but used it to pay dividends to earlier invesotrs
Substance of corporate responsibility
inputs and resources dealing fairly with staff and suppliers
transformation - minimising waste and energy use
outputs - responsible customer relations and clear labelling
process - leadership and stakeholder engagement
context - community activities and support
criteria for evaluating principles
utilitarianism - best outcome for greatest number
human right - does it maintain individual's human rights
moral principles
individualism - long term interest
why people reach different conclusions
behaviour compared with prevailing norms of acceptability
Role of business in society
Corporate responsibility
Milton Friedman - to increase profits as long as it stays within the rules of the game
business and society depend on each other
pressure groups ensure public expectations of business change
expectations vary between countries
Ethical decision making models
take in contest individual factors and contextual factors
managing corporate responsibility
codes of practice
corporate responsibility structures and reporting
lead by example
inclusion in FTSE4 Good index series
stakeholders and corporate responsibility
interests shape policy
part of strategy
corporate mission
customer needs e.g. fair trade