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