2016-02-11
Each commercial organization aims to increase its profit and profitability rates. At the same time, stable growth of the commercial organization is not possible without a clear strategy, tactical plan and qualified staff, which can implement its plans. Corporate and social responsibility of the organization is connected with its mission, goals, the whole strategy. It positively pacts on the organizational culture and help to form responsible staff.
Vision & Mission
The vision of the organization is a figurative representation of the sense of the activities and prospects of the organization’s future. It explains and demonstrates to all employees and the public, what the organization should be and what it seeks. Formation of vision is one of the top management tasks.
Vision refers only to the future: it loses its relevance in achieving the desired condition of the company and should be re-worded. The wording of the vision should be concise, dynamic design, easy to read (this is often the slogan), and meet the following requirements: to inspire, to be as simple as a memory or image, to provide the reference point, which can serve as a basis for developing the strategy. The next factor is mission. It is a business concept that reflects the main purpose of the business. The mission describes the only “reality” of the organization and ignore the business prospects in contrast to the vision. It can be the kind and scales of business, its differences from the main competitors (Russo, 2010, 9). Mission details the status of the company and provides the main points to generate goals and strategies at different organizational levels.
The main components of the mission are the following:
the products or services that the company produces or the range of needs that it meets;
categories of target consumer groups;
applied technology and management functions, i.e. the way to meet the needs of consumers;
competitive advantages of the company;
business philosophy.
Strategy & Tactics
The definition “management strategy” is considered as the direction and ways to use the tools to achieve set goals. In accordance with the strategy, organization can choose the options of administrative decisions and focus its efforts on their implementation. When the goal has been achieved, the defined strategy has lost its value. New goals require the development of a new strategy.
The strategy and tactics are closely connected. It should be noted that tactics is based on the strategy and includes specific techniques and methods that serve to achieve set goals in a reality. The objective of the tactics is the choice the best solutions, techniques and management practices that are the most suitable in the specific economic situation.
The strategy reflects the future image of the enterprise, to which one must strive. It can be described in words, represented as a model, and then it needs to formulate a firm way to achieve the desired state in its various aspects (Russo, 2010, 8). The strategy is expressed in the strategic management and specific plans of strategic development. Strategic management assumes several alternative ways to achieve the set goals.
Importance of the CSR
Corporate social responsibility (CSR) can be considered as the impact of business on society in a broad sense.
Its points must be taken into account when the organization forms own strategy. The main results of high level of organization’s CSR are the following:
the ability to attract and retain qualified personnel in conditions of its acute shortage;
the formation of social welfare area around organization.
The CSR of the organization is also considered as factor of sustainable development of the country’s economy in general (Russo, 2010, 374). The CSR of organization is based on the its interaction with stakeholders: employees, shareholders, investors, customers, government and non-governmental organizations. Thus, one of the most important objectives of the CSR is the communication or clarification of the views and interests of all stakeholders in order to take them into account in the further activity of the organization.
Interaction in the ESCS Framework
All above mentioned components are closely connected. Their interaction in the ESCS framework can be presented graphically (fig. 1). As we can see, vision and mission are the initial for the whole process. The next stage is connected with the complex analysis of the organization and its business environment. This stage finishes by formation several alternative ways for further development. Then, it needs to evaluate each alternative and choose the most appropriate one. Such factors and corporate and social responsibility, the system of values impact on the choice of strategy as well as on its implementation. Thus, this scheme shows the mechanism that is the base of effective activity of the organization.
References
Russo, M. (2010). Companies on a mission. Stanford, Calif.: Stanford Business Books.
