edf40wrjww2CF_PaperMaster:Desc
Name: Christine
Chapter 4: Strategic Purpose
Learning outcomes
? Identify the components of the governance chain of an organization
? Understanding differences in governance structures across the world and the advantages and disadvantages of these
? Identifying differences in the corporate social responsibility stances taken by organizations and how ethical issues relate to strategic purpose.
? Undertake stakeholder analysis as a mean of identifying the influence of different stakeholder group in the terms of their power and interest
? Consider appropriate ways to express the strategic purpose of an organization in term of statements of values, vision, mission or objectives.
1. Introduction
Stakeholders are those individuals or groups who depend on an organization to fufil their own goals and on whom, in turn, the organization depends.
2. Corporate Governance
Corporate governance is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organization. There are three main reasons:
• The separation of ownership and management control of organizations
• Corporate scandals
• Increased accountability to wider stakeholder interests
4 The governance chain
The governance chain illuminates th ...