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BUSINESS ETHICS INRODUCTION AND IMPORTANE, Assignments of Business Ethics

ALL YOU NEED TO KNOW ABOUT BUSINESS ETHICS

Typology: Assignments

2019/2020

Uploaded on 04/10/2020

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Common indicators for measuring
business social performance
Key Performance Indicators (KPIs)
I n i t s simples t f o r m , a K P I i s a t y p e o f
p e r f o r m a n c e m e a s u r e m e n t t h a t h e l p s y o u
u n d e r s t a n d h o w y o u r o r g a n i z a t i o n o r
d e p a r t m e n t i s p e r f o r m i n g . A g o o d K P I s h o u l d
a c t a s a c o m p a s s , h e l p i n g y o u a n d y o u r t e a m
u n d e r s t a n d w h e t h e r y o u r e t a k i n g t h e r i g h t
p a t h t o w a r d y o u r s t r a t e g i c g o a l s .
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Common indicators for measuring

business social performance

Key Performance Indicators (KPIs)

 I n i t s s i m p l e s t f o r m , a K P I i s a t y p e o f

p e r f o r m a n c e m e a s u r e m e n t t h a t h e l p s y o u

u n d e r s t a n d h o w y o u r o r g a n i z a t i o n o r

d e p a r t m e n t i s p e r f o r m i n g. A g o o d K P I s h o u l d

a c t a s a c o m p a s s , h e l p i n g y o u a n d y o u r t e a m

u n d e r s t a n d w h e t h e r y o u ’ r e t a k i n g t h e r i g h t

p a t h t o w a r d y o u r s t r a t e g i c g o a l s.

18 Key Performance Indicator Examples & Definitions

Financial Metric s

 Profit : This goes without saying, but it is still important to note, as this

is one of the most important performance indicators out there. Don’t

forget to analyze both gross and net profit margin to better understand

how successful your organization is at generating a high return.

 Cost : Measure cost effectiveness and find the best ways to reduce and

manage your costs.

 LOB Revenue Vs. Target : This is a comparison between your actual

revenue and your projected revenue. Charting and analyzing the

discrepancies between these two numbers will help you identify how

your department is performing.

Customer metrics  (^) Customer lifetime value (CLV) : minimizing cost isn’t the only (or the best) way to optimize your customer acquisition. CLV helps you look at the value your organization is getting from a long-term customer relationship. Use this performance indicator to narrow down which channel helps you gain the best customers for the best price.  (^) Customer acquisition cost (cac) : divide your total acquisition costs by the number of new customers in the time frame you’re examining. Voila! You have found your CAC. This is considered one of the most important metrics in e-commerce because it can help you evaluate the cost effectiveness of your marketing campaigns.  (^) Customer satisfaction & retention : on the surface, this is simple: make the customer happy and they will continue to be your customer. Many firms argue, however, that this is more for shareholder value than it is for the customers themselves. You can use multiple performance indicators to measure CSR, including customer satisfaction scores and percentage of customers repeating a purchase.  (^) Net promoter score (nps) : finding out your nps is one of the best ways to indicate long-term company growth. To determine your NPS score, send out quarterly surveys to your customers to see how likely it is that they’ll recommend your organization to someone they know. Establish a baseline with your first survey and put measures in place that will help those numbers grow quarter to quarter.  (^) Number Of Customers : Similar to profit, this performance indicator is fairly straightforward. By determining the number of customers you’ve gained and lost, you can further understand whether or not you are meeting your customers’ needs.

P r o c e s s M e t r i c s

 C u s t o m e r S u p p o r t T i c k e t s : A n a l y s i s o f t h e n u m b e r o f

n e w t i c k e t s , t h e n u m b e r o f r e s o l v e d t i c k e t s , a n d r e s o l u t i o n

t i m e w i l l h e l p y o u c r e a t e t h e b e s t c u s t o m e r s e r v i c e

d e p a r t m e n t i n y o u r i n d u s t r y.

 P e r c e n t a g e O f P r o d u c t D e f e c t s : Ta k e t h e n u m b e r o f

d e f e c t i v e u n i t s a n d d i v i d e i t b y t h e t o t a l n u m b e r o f u n i t s

p r o d u c e d i n t h e t i m e f r a m e y o u ’ r e e x a m i n i n g. T h i s w i l l

g i v e y o u t h e p e r c e n t a g e o f d e f e c t i v e p r o d u c t s. C l e a r l y ,

t h e l o w e r y o u c a n g e t t h i s n u m b e r , t h e b e t t e r.

 L O B E ffi c i e n c y M e a s u r e : E ffi c i e n c y c a n b e m e a s u r e d

d i ff e r e n t l y i n e v e r y i n d u s t r y. L e t ’ s u s e t h e m a n u f a c t u r i n g

i n d u s t r y a s a n e x a m p l e. Yo u c a n m e a s u r e y o u r

o r g a n i z a t i o n ’ s e ffi c i e n c y b y a n a l y z i n g h o w m a n y u n i t s y o u

h a v e p r o d u c e d e v e r y h o u r , a n d w h a t p e r c e n t a g e o f t i m e

y o u r p l a n t w a s u p a n d r u n n i n g.

What Is The Definition Of A CSR Report?

A C S R , c o r p o r a t e s o c i a l r e s p o n s i b i l i t y ,

o r s u s t a i n a b i l i t y r e p o r t i s a p e r i o d i c a l ( u s u a l l y a n n u a l )

r e p o r t p u b l i s h e d b y c o m p a n i e s w i t h t h e g o a l o f s h a r i n g

t h e i r c o r p o r a t e s o c i a l r e s p o n s i b i l i t y a c t i o n s a n d r e s u l t s.

T h e r e p o r t s y n t h e s i z e s a n d m a k e s p u b l i c t h e i n f o r m a t i o n

o r g a n i z a t i o n s d e c i d e t o c o m m u n i c a t e r e g a r d i n g t h e t h e i r

c o m i t m m e n t a n d a c t i o n s i n s o c i a l a n d e n v i r o n m e n t a l

a r e a s. B y d o i n g s o , o r g a n i z a t i o n s l e t s t a k e h o l d e r s ( i. e. ,

e v e r y o n e i n t e r e s t e d i n a n t h e i r a c t i v i t i e s ) a w a r e o f h o w

t h e y a r e i n t e g r a t i n g t h e p r i n c i p l e s o f s u s t a i n a b l e

d e v e l o p m e n t i n t o t h e i r e v e r y d a y o p e r a t i o n s.

What Is The Purpose Of A CSR Report?

 (^) T h e m a i n i n t e n t i o n o f a C S R o r s u s t a i n a b i l i t y r e p o r t i s t o i m p r o v e t h e t r a n s p a r e n c y o f o r g a n i z a t i o n s ’ a c t i v i t i e s. T h e g o a l i s t w o f o l d : O n o n e h a n d , C S R r e p o r t s a i m t o e n a b l e c o m p a n i e s t o m e a s u r e t h e i m p a c t o f t h e i r a c t i v i t i e s o n t h e e n v i r o n m e n t , o n s o c i e t y a n d o n t h e e c o n o m y ( t h e f a m o u s t r i p l e - b o t t o m - l i n e ). I n t h i s w a y , c o m p a n i e s c a n g e t a c c u r a t e a n d i n s i g h t f u l d a t a w h i c h w i l l h e l p t h e m i m p r o v e t h e i r p r o c e s s e s a n d h a v e a m o r e p o s i t i v e i m p a c t i n s o c i e t y a n d i n t h e w o r l d. O n t h e o t h e r h a n d , a C S R o r s u s t a i n a b i l i t y r e p o r t a l s o a l l o w s c o m p a n i e s t o e x t e r n a l l y c o m m u n i c a t e w i t h t h e i r s t a k e h o l d e r s w h a t a r e t h e i r g o a l s r e g a r d i n g s u s t a i n a b l e d e v e l o p m e n t a n d C S R. T h i s a l l o w s s t a k e h o l d e r s , s u c h a s e m p l o y e e s , i n v e s t o r s , m e d i a , N G O s , a m o n g o t h e r i n t e r e s t e d p a r t i e s , t o g e t t o k n o w b e t t e r w h a t a r e t h e s h o r t , m e d i u m a n d l o n g - t e r m g o a l s o f c o m p a n i e s a n d m a k e m o r e i n f o r m e d d e c i s i o n s. T h e s e d e c i s i o n s c a n s p r e a d f r o m i n v e s t i n g i n a b u s i n e s s , b u y i n g i t s p r o d u c t s , w r i t t i n g p o s i t i v e ( o r n e g a t i v e ) r e v i e w s , a m o n g o t h e r s.