Traditional communication is giving way to innovative approaches and tools that are shaping a new kind of communication focused on people.
Corporate communication is transforming into a dialogue that promotes listening and learning due to the social changes accelerated by new technologies, stakeholders’ extensive experience of relations with companies, globalization and the opening of different markets.
Communication and reputation management are based currently on a positive promotion and need to be open to share its business experience, culture and projects. Now the aim is to create real connections and achieve explicit support by upholding causes that go beyond purely business and economic goals.
According to Interbrand, brand accounts for 38% of a company’s total value and it is important ton consider it as a key element that forms commitment and long-term attachment by stakeholders.
There are ten dimensions determine a brand’s strength and its position in the market and the society: relevance, authenticity, accessibility, differentiation, consistency, exposure, clarity, commitment, responsiveness and protection.
Companies need to understand that brands can transform and improve societies. But in order to achieve this level, organizations need to behave seriously, coherently and ethically to improve their reputational profile in the eyes of the society and their stakeholders.
To better understand how this affects communication, this document explains the case of Nestlé: Several years ago some brand attributes of the company started deteriorating because they were associated with some burning international problems, such as child labour and fair trade. This delivered a blow to the company’s reputation and urged the company to strengthen its leadership in the area, reinstating its positive and ethical association with nutrition.
Besides, the role of the Communications Director is acquiring increasingly strategic and holistic perspective which in practice means the following: more globalization and responsibility, more listening and transparency, more coordination and reputation, more development and adaptation.
Communication in its traditional form is no longer useful. Pure communication is not able to create a link with the stakeholders and influence the society. In order to achieve it, companies simply have to do what they say rather than talk about what they will do in future. Intangible assets, especially identity and reputation, allow companies to align the discourse and the project in a mutually beneficial dialogue. Values should not only be stated, but also practiced in everyday activities.
Traditional communication is giving way to innovative approaches and tools that are shaping a new kind of communication focused on people.
Corporate communication is transforming into a dialogue that promotes listening and learning due to the social changes accelerated by new technologies, stakeholders’ extensive experience of relations with companies, globalization and the opening of different markets.
Communication and reputation management are based currently on a positive promotion and need to be open to share its business experience, culture and projects. Now the aim is to create real connections and achieve explicit support by upholding causes that go beyond purely business and economic goals.
According to Interbrand, brand accounts for 38% of a company’s total value and it is important ton consider it as a key element that forms commitment and long-term attachment by stakeholders.
There are ten dimensions determine a brand’s strength and its position in the market and the society: relevance, authenticity, accessibility, differentiation, consistency, exposure, clarity, commitment, responsiveness and protection.
Companies need to understand that brands can transform and improve societies. But in order to achieve this level, organizations need to behave seriously, coherently and ethically to improve their reputational profile in the eyes of the society and their stakeholders.
To better understand how this affects communication, this document explains the case of Nestlé: Several years ago some brand attributes of the company started deteriorating because they were associated with some burning international problems, such as child labour and fair trade. This delivered a blow to the company’s reputation and urged the company to strengthen its leadership in the area, reinstating its positive and ethical association with nutrition.
Besides, the role of the Communications Director is acquiring increasingly strategic and holistic perspective which in practice means the following: more globalization and responsibility, more listening and transparency, more coordination and reputation, more development and adaptation.
Communication in its traditional form is no longer useful. Pure communication is not able to create a link with the stakeholders and influence the society. In order to achieve it, companies simply have to do what they say rather than talk about what they will do in future. Intangible assets, especially identity and reputation, allow companies to align the discourse and the project in a mutually beneficial dialogue. Values should not only be stated, but also practiced in everyday activities.
The role of the Corporate Communication Director or Chief Communications Officer is gaining more weight in organisations, combining various strategic functions from managing some key intangibles, such as brand and reputation, to communication
Marketing is not effective and no longer yields expected results, advertising has become trite and ineffective, traditional public relations fail to reach new audiences and digital communities, communication tools used by companies in the past lost a good part of their capacity to generate value and are no longer useful for companies because the rules of the game have changed.
This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources, to the statements made by Joan Costa, an expert on communication, design, sociology, profesor of the University of Mexico and a member of the Corporate Excellence Board, during the panel discussion titled “Communication Innovations in Business and the Mass Media”, organised at the Faculty of Information Sciences, Complutense University in Madrid, on April 10, 2012, and his book “El Dircom hoy” (Communications Director Today) published by CPC Editor.
Reputation is probably the most important asset owned by a company, and not only because it attracts and retains the best resources, but also because it leverages the value of the company’s unique character and identity by showing how well the company manages to align its external perception with the internal reality.
This document was prepared by Corporate Excellence and among other sources contains references to Corporate Reputation and Competitiveness by Gary Davies and Rosa Chun, Professors at the University of Manchester (the UK) and the IMD Business School (Switzerland), respectively, and published by Routledge in 2003.
The PR industry in India is witnessing a transformation. The industry is making an extra effort to be viewed as a strategic partner, and clients are acknowledging its value. With this study, we wanted to give the industry a voice.
We commissioned an India-wide survey of PR professionals and the media to share their views on a potentially tough year for business and the hottest trends that will define the industry.
A year ago, MSLGROUP India released its first industry outlook report, highlighting such critical issues as the talent crunch, the comparatively low level of PR fees, the need for strategic and integrated communications, and the core issues hidden by the wrong perception of the industry’s size. The report sparked widespread interest and provoked much needed dialogue.
Join our conversations - @msl_group, @msl_ind, @mslgroupasia
A corporate brand is used not only to ensure the application of business strategy but also to design it. Brands are increasingly becoming cultures, manners of seeing life and ways of doing things that have to be shared with customers, although they first have to be cultures created and defended by employees.
There are still companies today that have yet to apply strategic management to their corporate brand, despite there being more and more companies, even in the mass commodity sector, that are beginning to use it as backing for their commercial brands. This approach to management ensures, on the one hand, the conveyance of meaning between the two and, on the other, the contribution the company’s own corporate reputation makes to product brands.
This document has been prepared by Corporate Excellence – Centre for Reputation Leadership based on the book Taking Brand Initiative: How Companies Can Align Strategy, Culture, and Identity Through Corporate Branding by Majken Schultz and Mary Jo Hatch.
Brand and Corporate Identity Management pdfFaakor Agyekum
The training focuses on determining the difference between a brand and corporate identity. Participants are led to recognize the need for branding especially in the service industry as well as identify what can be branded. The training also discusses challenges associated with the branding of services and identifies a simple approach to branding and managing the corporate identity of a firm
Marketing For Talent: The New Frontier, SMPS, Marketer, August 2014Maribel Castillo
Feature article by Marjanne Pearson and Mike Plotnick that discusses the importance of A/E/C marketers taking "a leadership role in shaping the future of our firms by actively engaging in the pursuit of talent." Highlights T.Y. Lin International's LinkedIn advertising and recruiting campaign.
Cause Marketing: Find New Ways to Fully Embed CSR Initiative into your Brand ...Simba Events
CSR Leadership World 2014 committee, Simba Events, concentrates to bring the whole system from global network to review and exam CSR issues with 360 angle to discover the earnest ways toward a sustainable economy future!
2014全球企业社会责任领袖峰会组委会-上海辛巴商务咨询有限公司,致力于打造一个整合全球CSR体系资源力量,用360度的全视角审视及检测当前及未来的CSR发展议题,共同找到通往可持续发展的商业未来的最佳路径!
The role of the Corporate Communication Director or Chief Communications Officer is gaining more weight in organisations, combining various strategic functions from managing some key intangibles, such as brand and reputation, to communication
Marketing is not effective and no longer yields expected results, advertising has become trite and ineffective, traditional public relations fail to reach new audiences and digital communities, communication tools used by companies in the past lost a good part of their capacity to generate value and are no longer useful for companies because the rules of the game have changed.
This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references, among other sources, to the statements made by Joan Costa, an expert on communication, design, sociology, profesor of the University of Mexico and a member of the Corporate Excellence Board, during the panel discussion titled “Communication Innovations in Business and the Mass Media”, organised at the Faculty of Information Sciences, Complutense University in Madrid, on April 10, 2012, and his book “El Dircom hoy” (Communications Director Today) published by CPC Editor.
Reputation is probably the most important asset owned by a company, and not only because it attracts and retains the best resources, but also because it leverages the value of the company’s unique character and identity by showing how well the company manages to align its external perception with the internal reality.
This document was prepared by Corporate Excellence and among other sources contains references to Corporate Reputation and Competitiveness by Gary Davies and Rosa Chun, Professors at the University of Manchester (the UK) and the IMD Business School (Switzerland), respectively, and published by Routledge in 2003.
The PR industry in India is witnessing a transformation. The industry is making an extra effort to be viewed as a strategic partner, and clients are acknowledging its value. With this study, we wanted to give the industry a voice.
We commissioned an India-wide survey of PR professionals and the media to share their views on a potentially tough year for business and the hottest trends that will define the industry.
A year ago, MSLGROUP India released its first industry outlook report, highlighting such critical issues as the talent crunch, the comparatively low level of PR fees, the need for strategic and integrated communications, and the core issues hidden by the wrong perception of the industry’s size. The report sparked widespread interest and provoked much needed dialogue.
Join our conversations - @msl_group, @msl_ind, @mslgroupasia
A corporate brand is used not only to ensure the application of business strategy but also to design it. Brands are increasingly becoming cultures, manners of seeing life and ways of doing things that have to be shared with customers, although they first have to be cultures created and defended by employees.
There are still companies today that have yet to apply strategic management to their corporate brand, despite there being more and more companies, even in the mass commodity sector, that are beginning to use it as backing for their commercial brands. This approach to management ensures, on the one hand, the conveyance of meaning between the two and, on the other, the contribution the company’s own corporate reputation makes to product brands.
This document has been prepared by Corporate Excellence – Centre for Reputation Leadership based on the book Taking Brand Initiative: How Companies Can Align Strategy, Culture, and Identity Through Corporate Branding by Majken Schultz and Mary Jo Hatch.
Brand and Corporate Identity Management pdfFaakor Agyekum
The training focuses on determining the difference between a brand and corporate identity. Participants are led to recognize the need for branding especially in the service industry as well as identify what can be branded. The training also discusses challenges associated with the branding of services and identifies a simple approach to branding and managing the corporate identity of a firm
Marketing For Talent: The New Frontier, SMPS, Marketer, August 2014Maribel Castillo
Feature article by Marjanne Pearson and Mike Plotnick that discusses the importance of A/E/C marketers taking "a leadership role in shaping the future of our firms by actively engaging in the pursuit of talent." Highlights T.Y. Lin International's LinkedIn advertising and recruiting campaign.
Cause Marketing: Find New Ways to Fully Embed CSR Initiative into your Brand ...Simba Events
CSR Leadership World 2014 committee, Simba Events, concentrates to bring the whole system from global network to review and exam CSR issues with 360 angle to discover the earnest ways toward a sustainable economy future!
2014全球企业社会责任领袖峰会组委会-上海辛巴商务咨询有限公司,致力于打造一个整合全球CSR体系资源力量,用360度的全视角审视及检测当前及未来的CSR发展议题,共同找到通往可持续发展的商业未来的最佳路径!
Organizational values should turn into real attitudes and behaviours grounded in everyday life and interaction with different stakeholder groups.
Clear and decided focus on stakeholders and creation of value for all stakeholder groups in line with their needs and expectations is a key element for building the reputation of many companies in the near future.
Values frequently expressed in different formats and through different communication media should first be experienced within the organization, be integrated into its brand history and company history. They can’t simply be improvised to be used as a short-lived tool in the communication games.
In this sense, CaixaBank is a leading organization in the Spanish banking market for promoting the model of social entities committed to commercial innovation and social and cultural activity through creation of value which includes not only purely economic or mercantile dimensions. It can be read in this document the values that guide its behaviour in the market and the society.
It is more and more important to be coherent between what is said and done and consistent with the company’s beliefs in order to develop a long lasting and successful project.
Four elements should be borne in mind in order to align culture and reputation, and make sure engagement translates into trust: vision and values, identification of stakeholders, monitoring and balanced scorecards and improved organizational processes.
The action plans implemented by Repsol show how important organizational culture is. It is, indeed, one of the aspects that best describes corporate reputation. Idea and personality are the most emotional part of the brand, while culture, vision, values and attributes reflect the rational aspect of what Repsol means for its stakeholders.
Engagement that leads to trust may be achieved by companies through demonstrating their commitment to the creation not only of economic value, but also social value. The social aspect represents both an opportunity and reputational risk, which should be measured, evaluated and considered.
In order to achieve a strong position in the market, a company first has to legitimize its intention to enter, operate and stay in this market. This task comes before building reputation and is accomplished through demonstrating the willingness to create not only economic, but also social value in the country.
“Doing good by being good” is a saying that accurately captures the prevailing perspective and foreseeable future for corporate reputation. Social commitments that companies undertake and try to live up to is a reflection of this trend which implies that alongside economic results, the social impact is a factor that determines ultimate brand value.
Gas Natural Fenosa stands as an of this new panorama, where activities undertaken by a company should be beneficial both for the company and the society.
Learning Activity #1Organizations must clearly articulate a Mi.docxsmile790243
Learning Activity #1
Organizations must clearly articulate a Mission Statement and Vision Statement in order to strategically plan. Failing to understand that initial step of the Strategic Planning process often leads an organization away from, instead of towards, effective strategic planning.
Below are four (4) Mission Statements and four (4)Vision Statements; select ONE Mission Statement and ONE Vision Statement. Clearly explain why the select Mission Statement and Vision Statement is effective or ineffective; offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting.
Mission Statements
McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.
The American Cancer Society is the nationwide community-based voluntary health organization dedicated to eliminating cancer as a major health problem by preventing cancer, saving lives, and diminishing suffering from cancer, through research, education, advocacy, and service.
To enhance quality of life for all as we age. We lead positive social change and deliver value to members through information, advocacy and service.
To create a shopping experience that pleases our customers; a workplace that creates opportunities and a great working environment for our associates; and a business that achieves financial success.
Vision Statements
GM’s vision is to be the world leader in transportation products and related services. We will earn our customers’ enthusiasm through continuous improvement driven by the integrity, teamwork, and innovation of GM people.
Develop, deploy, and manage a diverse set of scalable and strategic knowledge management tools to serve our customers, improving the possibility of overall satisfaction among our diverse customer profiles
To build the largest and most complete Amateur Radio community site on the Internet.
We intend to provide our customers with the best online shopping experience from beginning to end, with a smart, searchable website, easy-to-follow instructions, clear and secure payment methods, and fast, quality delivery.
Learning Activity #2
The “5 P’s of Strategy” capture the complexity of defining Strategic Management. Select ONE of the “5 P’s” – (1) explain why you selected that particular concept, i.e., why do you believe it is important to the overall strategic management process and (2) explain whether that particular concept requires more of a perspective of art or science from the strategic leaders point of view.
Clearly explain your position; offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting.
2/20/2017 The Social Responsibility of Business is to Increase its Profits, by Milton Friedman
http://www.colorado.edu/studentgroups/libertarians/issues/friedman-s ...
Definition of business plan, the purpose of business plan, the important elements, and the standard format of the business plan. The characteristics of a good business plan, format and minimum requirement required by financial institutions and government agencies.
This training about social entrepreneurship is aimed at business support organisations, sectoral agencies and public authorities which would like to know how they can be better support social entrepreneurship in their region.
Keeping it real - How authentic is your Corporate Purpose? Burson-Marsteller
Burson-Marsteller and Swiss-based IMD have been working together to research corporate purpose since 2008. This year’s study is presented in the context of the findings of Burson-Marsteller’s Corporate Perception Indicator, a global survey of public hopes and expectations of companies and their leaders.
[Overview] Barriers and Opportunities at the Base of the Pyramid - The Role o...Dragoș Tuță
As part of its mandate to guide and define the role of the private sector in poverty reduction and inclusive development, the UNDP Istanbul International Center for Private Sector in Development (IICPSD) produced the “Barriers and Opportunities at the Base of the Pyramid” foundational report. Developed by an interdisciplinary team of 18 leading poverty experts, the report leverages an ecological approach to understanding barriers to poverty reduction. The report presents poverty as a complex web of accumulating and interacting disadvantages facing people living in poverty, which in turn, sustain and perpetuate a life of socioeconomic exclusion. The barriers are clustered into five broad categories: Early Developmental Barriers, Health Barriers, Skill Barriers, Social Barriers, and Decision-making Barriers.
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International responsiveness is progressively being drained to Social Entrepreneurial Businesses SEOs . Ultimately, innovative types of businesses target to answer social, environmental or societal hitches by using contemporary management practices. Paralleled with traditional non profit organizations, numerous SEOs attempt to work commercial as have earned income strategies or are becoming more profitable concerned businesses. Not only government sector, but also private sectors have higher intention to deal with social and charity works to gained social reputation. as Social entrepreneurship is a key component for modern business, with connecting customer relations and consumption experience can be benefited for an organization to create their higher brand image or reputation in a particular industry. Thivanka Chamith Wijesinghe "The Importance of Social Entrepreneurship of Profit Based Businesses towards its Brand Image and Reputation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30352.pdf Paper Url :https://www.ijtsrd.com/management/marketing-management/30352/the-importance-of-social-entrepreneurship-of-profit-based-businesses-towards-its-brand-image-and-reputation/thivanka-chamith-wijesinghe
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Similar to How to formulate A vision and mission statement as well as business objectives for an organisation (20)
CSR, SMEs and Social Media: A Report from the Front Lines
How to formulate A vision and mission statement as well as business objectives for an organisation
1. 1
STRATEGIC MANAGEMENT
How to formulate a vision and mission statement as well
as business objectives for an organisation.
Lucky Ugboko
Department of Business Management
Faculty of Management Science
University of Calabar
ABSTRACT
“Strategic planning is worthless—unless there is first a strategic vision.” (Naisbitt, 1982:178).
The overriding challenge to managing a social enterprise is balancing business objectives with
social objectives. The final goal of the program is to improve the lives of the target population
through new or value-added economic opportunities. On the other hand, there is the tasked with
making the social enterprise (totally or in part) financially viable.
In the private sector the bottom line is very clear: to increase the company’s value for its
shareholders, in other words, to make money. Social enterprises have two bottom lines—a
financial and a social one—and the culture of one is very different from the other. Many
development professionals fear compromising their social objectives by succumbing to pressure
to increase the income of their enterprise. The irony, however, is that by focusing solely on
achieving social objectives, they put their entire program at risk because it may not be
sustainable in the future. So how does one maintain equilibrium between these seeming polar
opposites?
A clear vision and mission statement, objectives, and business description are important points
of departure.
The vision is what guides the social enterprise and energizes the stakeholders; it is the “big
picture” illustrating what you expect to achieve.
2. 2
The mission statement defines who the organisation is and where it is going.
The objectives give the organisation tangible milestones by which to get there.
This paper aims to describe and formulate a strategic vision and mission statement, and business
objectives of a social enterprise.
KEY WORDS: Vision Statement, Mission Statement, and Business Objectives
1.0 INTRODUCTION
HERCULES ENTERPRISE PRIOR TO VISION AND MISSION REALIGNMENT
Without a clear vision or mission statement a program may have an identity crisis. It wants to
know: “What am I, a program or an enterprise?” The promoters’ perception may likely be that
the social enterprise is a program on its way to being an enterprise that has both social and profit
motives.
A united vision for the social enterprise is desperately needed. Whether the concept, in this case
“Hercules”, remains a program or becomes an enterprise has radically different implications for
its objectives and priorities.
On the one hand, if the promoters decide that “Hercules” is to be a true enterprise, then
stakeholders must commit to engage only in business activities that can eventually survive in
“the real market.” In the extreme case, they may find that none of the products currently being
produced have any hope of being competitive. This will present a different set of challenges for
the enterprise. In this business model, objectives of full cost recovery and certain profit targets
will come first and social objectives will follow.
On the other hand, if they proceed on an assumption that Hercules is an “social program” that
will always be subsidized, then more attention can be focused on meeting social objectives. In
3. 3
addition, this type of incarnation would relieve stakeholders of making potentially painful
decisions.
If the promoters want a social enterprise striving for the former scenario—a true enterprise
model that is self-sufficient and that also meets the desired social objectives, then they must be
ready to make some of the hard business decisions that come with this prioritization of
objectives within the mission.
Therefore, to proceed, all stakeholders in the social enterprise program must develop a common
vision and mission for the Hercules venture, one that embodies its identity, priorities, objectives,
and vision for the future.
2.0 Vision Statement
A vision is a global concept; it paints a picture of the social enterprise’s direction and future. An
effective vision statement succinctly communicates an uplifting philosophy that energizes social
enterprise stakeholders to embrace challenges in order to successfully accomplish its goals.
(Sutia, 2000)
A vision statement should remain relatively constant; the normal life span of a vision statement
is 10 to 20 years. It articulates the ultimate long-range goal for the social enterprise.
2.1 Creating a Vision Statement
The promoters of Hercules can use the following questions as a guide to formulate its vision:
How do we envision our social enterprise in 10 years?
How is what you hope to achieve embodied in this vision?
An example is given for Hercules Enterprise in Cross River State
Sample vision statement for Hercules Enterprise
“To develop the self-determination of a large group of disenfranchised self-employed women
engaged in food transformation of agricultural production in rural Cross River State by way of a
viable enterprise that contributes to a higher standard of living for themselves and their
families.”
4. 4
3.0 MissionStatement
The mission statement is the heart of the social enterprise. It describes its central purpose and the
basic principles that guide the actions of employees, partners, and management. As well, it
articulates the strategy you will use to accomplish your goals and objectives. A mission
statement also defines your target population and embodies the organizational values of the
social enterprise (The Alliance, 2016).
The mission statement also provides direction to the social enterprise. If the business plan can be
considered the road map of the social enterprise and the vision is the direction in which it is
going, then the mission statement consists of the street signs to get there. The business plan must
be consistent with the mission statement; it is used as an anchoring guide in each step of the
planning process.
3.1 Five Steps to Developing a MissionStatement
Developing a mission statement entails defining the“who,”“what,” “why”“for whom,” and
“how” of the social enterprise. (Sutia, 2000) listed five steps to developing a mission statement:
1. Client Statement
The client statement is the “for whom” of the social enterprise; it identifies the members of the
target population and the basic strategies that will be employed to reach them. The following
questions can help as a guide:
▲ whom have you identified as the target population of the social enterprise?
▲ what needs have they stated?
▲ what activities and subsector are they engaged in?
▲ where are they located?
▲ how can they be reached?
Example: “The target clients of the Cross River State social enterprise are poor women engaged
in food transformation of agricultural products in Yakurr Local Government Area.”
2. Problem Statement
5. 5
The problem statement is the “why” of the program. It defines the problem the organisation is
seeking to mitigate through its social enterprise. The following questions can serve as a guide to
developing the problem statement:
▲ what is the predominant need identified among the target population?
▲ what are the constraints the target population faces in maximizing profit in its businesses?
▲ is the prevailing problem of a business nature, such as poor-quality products, raw material
limitations, or lack of working capital? Or is it of a social nature, such as gender discrimination
or other social dynamics within the industry or subsector?
▲ Can this problem realistically be alleviated through a social enterprise?
If you find that you have identified several problems, be pragmatic about which ones can
realistically be tackled in your program. You will not solve all the country’s ills with one social
enterprise program, so it is best to focus on what is doable.
Example: “The main problem faced by these self-employed women is access to markets in which
to sell their products.”
3. Statement of Purpose
The statement of purpose describes “what” the social enterprise seeks to accomplish. It answers
the question, “What will the ultimate result of our work be?” The statement of purpose uses
infinitive verbs such as “to eliminate,” “to increase,” “to improve,” and “to prevent,” indicating a
change in status related to the problems to alleviate.
In defining purpose, focus on results rather than methods. Consider questions like “How is the
situation going to be different because of the social enterprise?” and “What is going to change
for the target clients?” For example, the purpose of a marketing social enterprise would not be
“to provide marketing services to poor women entrepreneurs” but “to increase market
opportunities and income of poor women entrepreneurs.”
Example: “To increase economic opportunities and income of poor women entrepreneurs
engaged in food transformation of agriculture.”
6. 6
4. Business Statement
The business statement describes “how” the social enterprise will achieve its purpose by
depicting the activities it will undertake to this end. In doing so, the business statement
characterizes the basic strategy that will be used. Most purpose statements yield several potential
strategies, each one constituting a different “business.”
To increase poor women entrepreneurs’ income, Hercules could provide access to affordable
credit, business training, and improved production technology, among other options. Writing a
business statement clarifies the means to accomplishing the purpose and gets everyone reading
off the same page.
Example: “To increase economic opportunities and income of poor women entrepreneurs
through production technology, research and development, and marketing services that enable
them to produce commercially competitive, high-quality goods and link them directly to
markets.”
5. Value Statement
The value statement communicates the “who” of the social enterprise by embodying the beliefs
and principles of the program. Values guide staff, management, and leadership in performing
their duties. Often, the values of an institution, such as commitment to economic justice for the
poor, integrity, honesty, innovation, cost recovery, or religious conviction, are important
elements in a staff member’s decision to work with an organization or are the reason a donor or
board member supports a particular program. Ideally, the personal values of stakeholders are
aligned with the values of the social enterprise program. Through a participatory process of
developing a written value statement, program staff and leadership have an opportunity to
delineate the values they want the organization to encompass and realign them if necessary. In
addition, such a statement holds stakeholders accountable in programming and operations.
Example: The social enterprise is committed to bridging gaps of economic disparity among poor
self-employed women and developing self-determination. The guiding principle of the social
7. 7
enterprise is to operate as a business with the goal of full cost recovery, believing this to be the
only viable means to achieve sustainable objectives of economic justice and improved quality of
life for poor women in Yakurr Local government area of Cross River State.
3.2 Writing a Mission Statement
▲ Synthesize the work completed in the previous five steps into a comprehensive statement.
Although length is not specified, a mission statement should be brief, consisting of just a few
lines or sentences.
Example of Mission Statement for Hercules
“To increase economic opportunities and income of poor self-employed women engaged in food
transformation of agricultural production in Yakurr Local Government Area of Cross River State
through the creation of a financially viable social enterprise that provides them with
commercialisation services and market linkages so they can supply high-quality products to their
customers.”
4.0 Social Enterprise Objectives
An objective is an end result, and it is often referred to as a “target” in development literature
and proposals. Objectives serve as quantitative measures within a fixed time frame that propel
the social enterprise toward accomplishing its mission. The time frame for achieving the
objectives should correspond with viability and other mid-term goals set forth in the mission
statement.
Secondary objectives for marketing, human resources, and production flow from these main
objectives, and subsequently; operational strategies are built upon them. For example, financial
viability is determined by forecasting the enterprise’s break-even point, and then benchmarks are
set and aligned with the business plan, which details strategies for achieving these objectives
Objectives align with vision and mission
8. 8
The objectives must address both bottom lines—business and social—of Hercules Enterprise and
can be divided into two categories: social impact objectives and financial sustainability
objectives
Regardless of type, objectives must be SMART:
▲ Specific — well defined and clearly stated
▲ Measurable — quantifiable or absolutely calculable
▲ Achievable — realistic under the circumstances
▲ Relevant — supporting accomplishment of the mission and contributing to realizing the
vision in the long term
▲ Time bound — time based (corresponding to the period of the business plan)
4.1 Social Impact Objectives
Social impact objectives enable Hercules to measure the social aspect of its mission statement.
Two objectives among these can be easily defined as SMART objectives:
Scale — the number of the target population—self-employed, small producers, poor
people, homeless, physically or mentally handicapped, etc.—that the social enterprise
VISION
MISSION
SOCIAL
IMPACT
OBJECTIVES
FINANCIAL
SUSTAINABILITY
OBJECTIVES
T
I
M
E
Figure 1. showing objectives aligning with vision and mission
9. 9
will benefit. How scale is quantified depends on the goals and design of the program, but
it is often expressed as a number of individuals served or jobs created.
Income Level — the level of net income distributed to the target population. It can take
the form of wages, salaries, or profit sharing. It is often expressed in naira or other
currency value, as a total income per individual. Other social impact objectives can be
slippery and difficult to measure, and are likely to vary greatly among enterprises based
on the needs of the target population and mission. Some generic examples are:
Skill and management capacity to run enterprise operations measured by the ability to
conduct certain tasks;
Asset Accumulation;
Percentage of clients’ children in school;
Decrease in out-migration;
Improvement in housing or living situation.
4.2 Financial Viability Objectives
Financial viability objectives represent the business component of your mission by addressing
the social enterprise’s financial bottom line and measuring its viability.
Cost recovery — gauges the ability of the social enterprise to cover its costs through
generated revenue. Cost recovery is expressed as the percentage of expenses covered by
the revenues in a given period. For instance, a 25% cost recovery means that 25% of the
total cost was covered by 25% of the total revenue, the remaining 75% being covered by
subsidies.
Net Profit/Loss — measures social enterprise profitability via the financial bottom line. A
net positive number indicates a profit, whereas a net negative number indicates a loss.
Net profit/loss can also be considered a “test of the market” indicator demonstrating the
enterprise’s ability to operate as a successful business. Net profit/loss is reflected in the
last line of the income statement and expressed in naira or other currency value.
10. 10
Cost-efficiency — measures the ability to render services at a decreasing cost over time.
Cost-efficiency is often quantified as a net loss or profit per individual, expressed in naira
or other currency value. If the cost-efficiency amount is a negative value, it represents the
amount of subsidies per individual necessary to support the social enterprise. If it is a
positive value, it represents the profit generated by each individual.
4.3 Combining the Objectives
If the objectives seem incompatible or incongruous, it is a red flag that they may not be
achievable. In this case, adjusting expectations and objectives within limits that all partners can
agree on—i.e. reconsider the target income level or the scale of the program; change the cost
structure of the business to increase efficiencies; or increase the number of years before financial
sustainability—can help find a better fit between objectives and mission. If this approach doesn’t
yield stakeholder satisfaction, there maybe need to rework the mission statement and repeat the
process until a workable mix is found (Business development services for SMEs).
Finally, if dissatisfaction prevails, promoters are probably in the wrong type of business or
industry to support a social enterprise venture, therefore they will have to select another
business.
4.4 Developing Objectives
(1) Address both bottom lines—business and social—of the enterprise
(2) Advance the enterprise mission
(3) Ensure objectives are SMART
4.5 Hercules Social Impact Objectives
Hercules projects viability in seven years, therefore objectives are projected over that period.
Hercules’ objective is based on beginning with 120 clients and increasing that number by 20%
each year over a seven-year period.
Year 1 2 3 4 5 6 7
No. Of Clients 120 144 173 207 249 299 358
4.51 Income Level
11. 11
Income potential must be greater than what the self-employed poor earn in other income
generating activities and more stable in order to raise standards of living.
A base-line analysis on current income levels of the self-employed poor is conducted. Based on
this information, Hercules established the following objectives for income level on a seven-year
period:
Year 1 2 3 4 5 6 7
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Monthly Income per client 67 73 78 85 91 98 106
Total Annual Income P/client 804 876 936 1,020 1,092 1,176 1,272
4.52 Other Social Impact Objectives
By the conclusion of year seven, the social enterprise aims to:
• Create 370 new job opportunities: 358 clients and 12 Hercules staff.
• Decrease rural out-migration by 50%.
• Link a minimum of 65% of clients to Hercules development activities, including agricultural
extension, education, and health services.
•Develop organisational and management capacity, as measured by achievement of specific
performance targets identified in the human resource plan.
4.6 Estimating the Financial Viability Objectives
4.61 Cost Recovery Formula: Total estimated revenue divided by total estimated expense,
multiplied by 100.
Year 1 2 3 4 5 6 7
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Total revenue 15 45 95 145 190 215 235
/Total expense4 150 265 280 285 270 225 185
Cost recovery 10% 17% 34% 51% 71% 96% 127%
4.62 Net Profit/Loss Formula: Total estimated revenue minus total estimated expense
Year 1 2 3 4 5 6 7
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Total revenue 15 45 95 145 190 215 235
12. 12
/Total expense 150 265 280 285 270 225 185
Net Profit/Loss (135)(220) (185) (140) (80) (10) 50
4.63 Cost-efficiency Formula: Net Profit/Loss divided by number of clients
Year 1 2 3 4 5 6 7
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Net Profit/Loss (135) (220) (185) (140) (80) (10) 50
/ By No. Of clients 120 144 173 207 249 299 358
Profit/Loss per client (1,125)(1,528) (1,071) (675) (322) (33) 140
REFERENCES
Business Development Services for SMEs: (1997) Preliminary Guidelines for Donor Funded
Interventions
Naisbitt, John (1982). Megatrends: Ten New Directions Transforming Our Lives. Warner Books
/ Warner Communications Company.
Sutia, Kim Alter (2000). A Business Planning Reference Guide for Social Enterprises
(http://creativecommons.org/licenses/by-sa/3.0/)
The Alliance “What’s in a Mission Statement” Washington, DC (www.allianceonlone.org).
August 2016.