We will study and discuss the following

 VISION

MISSION STATEMENT

FORMUALTING A MISSION STATEMENT

SOCIAL RESPONSIBILITY

STAKEHOLDER APPROACH TO SOCIAL RESPONSIBILITY

GUIDELINES FOR A SOCIAL RESPONSIBLE FIRM

 “Vision and mission of the company are the guidelines
and torch bearers to the strategy formulation for future
conducting of the business . The formulation involves
developing a vision for the organization, progressing the
same into a mission , translate the same into objectives and
goals and specify strategies for accomplishments of
objectives”
Vision consists of :

Core ideology – means

“ what we stand for and why we exist”

Future envision –means

“what we aspire to become, to achieve and to create”

Vision

 Features of a good vision :

 Specific and precise

 Effective communicability

 Effective implement ability

 Should be all encompassing of everyone's interest

MISSION STATEMENT

 Mission is the fundamental and enduring purpose of an

organization that sets it apart from other organizations of similar
purpose

 Three elements of mission statement:

 History of the organization

 Distinct competencies of the organization

 The environment of organization

 Features of a good mission statement

 Must differentiate the co., from competitors

 Defines the business of the company

 Must be inspiring

 Should take into account all stake holders

 Must define the purpose for which company exists

 Must define why it exists

 Must tell what is unique

 Must tell who are the principal customers of the firm

 What is the principal economic activity of the firm

 What is the future expected differentiation

 Basic beliefs, values, aspirations, and philosophical

priorities of firm
Formulating a mission statement

 Strategic formulation refers to the process by which strategy is formed

 We will have to formulate the strategy based on the components :

• Company mission- in which direction do we want to take the company ahead

• Company profile- industry-and make up of the organization

• External environment

• Grand strategy

• Long term objectives

• Annual objectives
Formulating a mission statement

 Basic products : the mission statement must mention the basic product
the company will be manufacturing

 Primary market : mission statement will carry the identified primary

market i.e. domestic or international

 Principal technology: will define the primary technology utilized for

production and delivery
Formulating a mission statement

 Company goals : refers to the desired future position a company wants

to achieve in its line of business

 These goals can be

 Market share
 Market leadership
 Given turnover
 Profitability and return on investment
Formulating a mission statement

 Company goals should be

 Precise and measurable
 Address important issues specify a time period in which achievable

 Strategic goals should address

 Both financial and non financial issues

 Facilitate reasonable trade offs
 Reachable through stretch
 Cut across financial areas
Formulating a mission statement
 Company philosophy

 Must give out a frame work under which the corporate will perform

 It reflects the basic beliefs, ethics values, aspirations,

guiding principles, and philosophical priorities
Formulating a mission statement
 Company Image

 The mission statement must spell out the public perception and image
the corporate wants for itself

 The image statement will spell out its social relationship too
Formulating a mission statement

 Company self concept

 The idea is that the company must know itself
 Its impact on the environment
 On the life of its internal stake holders
 On the life of its external strake holders
Formulating a mission statement
 Company mission and its stake holders

Inside stake holders Outside stake holders

Founder members  Customers

Suppliers
Board of directors Government
 Trade unions
Stockholders Competitors
Local committees
Employees General public
Environment
Employee unions Flora and fauna
Social Responsibility
 Refers to the non financial areas that affect the society in general due to
company’s business operations

 Economic responsibility: providing value to society in the shape of

goods and services

 Legal means adhering to the laws / policies/ and ordinances of the

governments

 Social responsibility means operating and remaining within the social

norms, set up by the society in which we all live

 Discretionary responsibility means voluntary obligations performed

by the corporate
Social Responsibility
 Guidelines to a social responsible corporate

 Ensure profitability

 Take care of both financial and social costs

 Decide your own individual approach to meet the social responsibility

Social Responsibility-strategy and business ethics –
ethical decision making

Evaluate decision
from ethical Evaluate in
standpoint/ does context to moral
it affect any stake principles
holder negatively

Establish moral Engage in

intent ethical behavior