ASST PROF JONLEN DESA

A Mission is a statement that depicts the main purpose of an organization that distinguishes one business from other similar firms.A mission statement identifies the scope of a firm’s operations in product and market terms.A mission statement reveals the long term vision of an organization in terms of what it wants to be and whom it wants to serve.It describes the organization’s purpose, customers, products or services, markets, technology etc.It describes a firm’s values, aspirations and the reason for its being or existence.It mostly focuses on the present.

A mission statement should be clear, broad, enduring, realistic, specific, based on values & beliefs, identifiable.Mission is a statement which defines the roles that an organization plays in society. It helps businesses fulfill a particular need.

Example:The society needed to have quick, reliable & cheap communication. (NEED)BSNL came into existence for providing fast, reliable & cheap mobile communication facilities. (COMPANY)Thus the mission of BSNL is to provide fast, cheap & reliable mobile communication facilities. (MISSION)

Focus on the market rather than the productAchievableMotivationalSpecificClearDistinctive

CustomersProducts or ServicesMarketsTechnologyPhilosophySelf-ConceptConcern for public imageConcern for employees

Strategy is a plan or course of action which is vital, pervasive or continuing importance to the organization as a whole.Mission sets the direction for strategic development of an organization.Mission helps firm in setting the goals and objectives of a firm. On the other hand, strategy is an action plan that provides direction to achieve the goals set.Mission defines specific strategies needed to attain goals.It creates a disciplined organization.A main advantage of formulation of the mission is that it results in a clear definition of a business of a company. Mission statement & definition are the two sides of the same coin.

The Mission and Strategy of a firm should complement each other if a firm is to achieve its set objectives. Without an effective mission statement there will be no performance. The mission statement has to express the contribution the enterprise plans to make to society, economy, customer and its CSR.Mission has to be supported by the other elements of strategy & inputs.3 Fundamental Questions need to be answered:

1. What is our business?2. What will our business be?3. What should our business be?

A vision is an over-riding idea of what the organization should be in future. It often it reflects the dream of the founder or leader which eventually get fulfilled after years of hard work and dedication.Visions are future oriented.Vision focuses on the position that a firm would like to attain in the distant future. Good visions are competitive and unique and foster long term thinking.

Kotler defines vision as “a description of something in the future”.A clear vision is essential to develop an essential mission statement.An organizational vision answers the question “ What do we want to create”?

Objectives form the basis for the functioning of an organization.Objectives help define the organization and its environment.

Objectives are defined as “ those ends which the organization seeks to achieve by its existence and operations”.

Objectives are long term results that a firm intends to achieve. On the other hand, goals are short term milestones that a firm should achieve in order to achieve long term objectives.

Objectives may be tangible(in terms of Qty) or intangible (brand, company brand, employee morale).

2 Approaches for setting objectives: Top-Down & Bottom Up Approach.

Objectives should be understandableObjectives should be specificObjectives should be relate to time frameObjectives should be measurable & controllableObjectives should be challengingObjectives should be attainableObjectives should be set within constraints

Justify the organizationProvide directionBasis for management by objectivesHelps strategic planning/managementHelps co-ordinationHelps in decentralizationHelps in Decision makingUseful in Performance AppraisalProvide standards for assessment & control

HIERARCHY OF OBJECTIVES

CSR is the intelligent and main concern for the welfare of society that restrains individual and corporate behavior from destructive activities.Through CSR, management is responsible to itself and to all other interested groups i.e. its stakeholders- shareholders, customers, employees, suppliers, creditors, government, society etc.It is the duty of a business firm to protect the interest and welfare of all its stakeholders.All businesses should also focus on the needs of society besides profit maximization. They should consider the impact of their decisions and activities on others.Businesses are accountable voluntarily to society for its actions. Both businesses as well as society need each other for their survival and functioning.

CSR is the obligation of decision makers to take actions which protect and improve the welfare of society as well as their own interests.Society expects that the businesses are conscious and ethical in their practices.Examples of CSR include providing employment opportunities, paying taxes on time, paying fair wages to employees, supplying good quality products at reasonable rates to customers, being eco- friendly, infrastructure development, meeting the needs of others etc.Business and society are interrelated and interdependent.

Corporate Responsibility “ is the obligation of the organization to serve its own interest and those of society.” - John R.S.

Corporate Responsibility “ is the responsibility of decision makers to take action which helps society and serves own interest.”

Conduct social audit Arrange public meetings Use trained staff Use of means of communicationIntegral part of society obtaining collective results Obtaining collective resultsHelp the needy More than the law

Growing public expectations of business Creating favorable environment for business Creating favorable public image Minimize government control Business is a means and not the end in itself Better use of surplus resources Application of principle of trusteeship Complexity of social problem Prevention is better than cure Interdependence of social system

Changes in public expectationsBusiness is a part of societyAvoiding intervention by governmentBalance of responsibility and powerFavorable public imageFavorable environment for businessPrevention is better than cureBusiness is a means and not the end in itselfBetter usage of resources

Opposes the principles of profit maximizationExcessive CostsLack of necessary skills among business peopleEconomically IrrationalBusiness & Social Activities are OppositeCharity degrades Human Dignity

CORPORATE CORPORATE RESPONSIBILITIES OF RESPONSIBILITIES OF BUSINESSBUSINESS

2. RESPONSIBILITIES TOWARDS CUSTOMERS

To provide goods and services as per the needs of consumers and also to provide maximum possible satisfaction to consumers by providing quality goods and guaranteeing about the lifetime performance of the product supplied.

To avoid all monopolistic/ restrictive/ unfair/ trade practices which are harmful to consumers.

To allow free and fair competition in the market. To ensure that the product supplied has no adverse effect on the

life and health of consumers/ customers. To avoid artificial scarcity of goods and services and thereby

ensure fair and equitable distribution. To supply goods at fair and reasonable prices to consumers. This

means the price should be within the reach of common consumer.

To conduct marketing research activities in order to make business consumers friendly.

To maintain close link with consumers and to introduce consumers advisory councils and consumer cells in order to give attention to the complaints/ suggestion of consumers.

To maintain continuous supply of goods and to provide satisfactory after sale service.

To honor and protect the rights of consumers. To avoid exploitation of consumers through business malpractices

such as adulteration and short weights. To study the needs and expectation of consumers and to adjust

business activities accordingly. To reveal correct information in advertising, packing and labeling

to consumers. To give decent treatment to consumers. The principle of ‘good

manners are good business’ should be followed while dealing with consumers.

To make available a fair margin of profit to retailers so that they are discouraged from indulging in unfair trade practices.

To follow honestly the code of fair business practices/ the code of business ethics.

3. RESPONSIBILITIES TOWARDS EMPLOYEES

To provide opportunity for meaningful work in the enterprise and to create a sense of loyalty towards the enterprise.

To create the conditions in which employees are able to put forward their best efforts for achieving the objectives of an enterprise.

To recognize and honor the workers rights to: fair wages, participate in decisions affecting them and to join trade unions.

To provide adequate opportunities to develop their capabilities through education, training and promotion.

To introduce code of conduct for workers and proper machinery for maintaining cordial relations with employees

To provide a security of employment so as to raise their morale and loyalty to the organization.

To introduce impartial promotion and transfer policies for the entire labor force.

To create a sense of belonging and to motivate employees to contribute their best towards the progress of the enterprise. To provide welfare facilities to workers and to make arrangements for their recreation and safety. To pay just and fair wages and allowances to workers and to introduce fair work standards and norms. To introduce suitable grievance handling machinery in consultation with the trade union. To provide best possible working conditions and thereby to make workplace attractive and agreeable to employees. To recognize, appreciate and encourage special skills and capabilities of employees. To introduce schemes of participative management.

4. RESPONSIBILITIES TOWARDS SHAREHOLDERS

To earn sufficient profit and to bring financial soundness to the company and also to the investment of shareholders.

To keep the business enterprise stable and dynamic. In addition, to run the business in a cost conscious and efficient manner so as to stay in the business over a long period.

To provide fair return on capital provided in the form of reasonable dividend and long term appreciation of shares.

To supply complete and accurate information about the financial position of the company through reports and circulars.

To supply audited annual accounts in order to inform the owners that their capital has been fruitfully employed.

To take investors into confidence and to consult them as and when necessary.

To build up financial stability. To improve the prestige of the company through growth and expansion. To raise the public image of the company so that shareholders will be

proud of their company.

5. RESPONSIBILITIES TOWARDS GOVERNMENT

To pay taxes, duties, fees etc. regularly and honestly. To respect and follow different commercial, industrial and other relevant laws, rules and regulations. To offer co-operation to the government in the execution of different economic policies. To avoid the use of corrupt and unethical means to seek favors from the government and politicians. To avoid tax evasion and to assist the government in promoting exports. To submit various returns/ forms/ documents etc. to government authorities correctly and in time.

6. RESPONSIBILITIES TOWARDS SOCIETY

To generate employment opportunities and to provide better life and welfare to all members of society. To see to it that all amenities of the local community are not damaged. To avoid bad effluents, smoky chimneys and other forms of pollution. To preserve ecological balance. To contribute towards economic growth, economic stability and national security. To introduce social audit by professional experts. To provide financial support to social and cultural activities. Also contribute to social causes like education and rural development. To improve the quality of products and to look after the welfare of the local community. To rehabilitate the population affected by the operation of business, if any.