Business Mission & Corporate Objective
Business Management: IB Diploma, topic 1.3.2
Business Mission
A business mission statement aims to set out the organisation’s purpose. There are many influences on a business’ mission statement:
Culture
- The culture of the business will influence its overall mission.
Ethos and values
- The ethos and values of the founders will influence the overall mission.
Shareholders
- The views of shareholders will influence the overall mission.
Stakeholders
- The values of stakeholders including the community and employees may influence a business’ overall mission.
Corporate Objective
Corporate objectives are overall business objectives designed to steer a business towards achieving its overall mission. There are many influences on a business’ corporate objectives:
Short-termism
- Pressures for short-termism, of focussing on short-term gains at the expense of long-term gains, can influence corporate objectives as managers may seek short-term profit at the expense of long-term investment in research and development.
Business ownership
- Business ownership may influence corporate objectives as owners in the private sector are likely to place emphasis on profit maximisation as where public sector organisations are likely to place emphasis on providing for a societal need.
Internal business environment
- The internal business environment may influence corporate objectives as managers respond to changes in the internal environment.
External business environment
- The external business environment may influence corporate objectives as managers respond to changes in the external environment.
Test yourself on Business Mission & Corporate Objective
Investors who hold stock in a business are primarily concerned with profits. They apply pressure on the business' CEO to create a mission which suits this.
Which of the following best fits this situation?If you focus on short-term profits, what are you most likely to sacrifice?