Objectives of Social Enterprises and Public-Sector Businesses

• Business
• Secondary Education

Objectives of Social Enterprises and 

Public-Sector Businesses

Learning Objectives

• Understand the triple bottom line objectives of social enterprises
• Recognise the objectives of public-sector businesses
• Apply SMART criteria to business objectives

What do you already know about the objectives of social enterprises and public-sector businesses?

Definitions

• Social Enterprises: Businesses with economic, social, and environmental objectives. They apply commercial strategies to maximise improvements in financial, social and environmental well-being.
  

Definitions

• Triple Bottom Line: A principle where businesses aim for economic, social and environmental objectives. Often this is summed up with the 3 P's: People, Planet and Profit.

Triple Bottom Line Objectives of Social Enterprises

• Social enterprises aim for a triple bottom line
• Economic, social, and environmental objectives
• Profit is not the sole objective
• Goal is to be socially responsible
• Close relation to CSR orientation of businesses

Definitions

• Public-Sector Businesses: Entities controlled by the government with objectives to provide public services and foster economic and social development

Objectives of Public-Sector Businesses

• Entities controlled by the gov.
• Objectives include providing efficient services
• Encouraging economic and social development
• Creating employment
• Meeting financial targets
• Achieving high environmental standards

Definitions

• SMART Objectives: Business goals that are Specific, Measurable, Achievable, Realistic and Relevant, and Time-limited

SMART: Specific Objectives

Specific: Objectives should focus on what the business does and should apply directly to that business. A hotel business might set the objective of a 15% return on capital in each of its hotels. This objective is specific to this business.

SMART: Measurable Objectives

Measurable:  Objectives that have a quantitative value are likely to prove to be more effective targets for directors and staff to work towards. An example would be to increase sales in the south-east region by 15% this year.

SMART: Achievable Objectives

Achievable:  Setting objectives that are almost impossible in the time frame given will be pointless. They will demotivate the staff who have the task of trying to reach these targets. So, objectives should be achievable.

SMART: Realistic Objectives

Realistic:  Objectives should be realistic when compared with the resources of the company and should be expressed in terms that are relevant to the people who have to carry out the objectives.

SMART: Time limited Objectives

Time limited:  A time limit should be set. Without a time limit, it will be impossible to assess whether the objective has actually been met. An example would be to increase profits by 5% over the next three years.

What are the three main aims of social enterprises?

1. political
2. economic
3. environmental
4. social

What is the term used to describe the three main aims of social enterprises?

1. corporate social responsibility
2. profit motive
3. triple bottom line
4. economic sustainability

Which type of businesses can have objectives such as providing an efficient, reliable service to the public?

1. public-sector businesses
2. social enterprises
3. nationalised industries
4. private-sector businesses

What does the SMART criteria stand for in relation to effective business objectives?

1. Specific, Measurable, Achievable, Realistic, Time-limited
2. Strategic, Meaningful, Actionable, Results-oriented, Time-bound
3. Structured, Meaningful, Applicable, Relevant, Timely
4. Significant, Motivating, Ambitious, Relevant, Targeted

Why are general objectives like 'being as successful as possible over the next few years' not useful in business?

1. They lack specificity and measurement
2. They are only relevant to public-sector businesses
3. They are too ambitious and unrealistic
4. They do not align with the triple bottom line principle

What is profit maximisation?

1. Producing at the level of output with no profit
2. Producing at the level of output with the lowest profit
3. Producing at the level of output with equal revenue and costs
4. Producing at the level of output with the greatest positive difference between total revenue and total costs

What is profit satisficing?

1. Aiming to achieve the highest possible profit
2. Aiming to achieve enough profit to keep the owners satisfied
3. Aiming to achieve no profit at all
4. Aiming to achieve equal revenue and costs

What are the potential benefits of business growth?

1. No benefits at all
2. More likelihood of being taken over, diseconomies of scale, lower salaries and fringe benefits
3. Less likelihood of being taken over, economies of scale, higher salaries and fringe benefits
4. Equal likelihood of being taken over, no economies of scale, no change in salaries and fringe benefits

What does increasing market share indicate?

1. Less successful marketing strategies compared to competitors
2. More successful marketing strategies compared to competitors
3. Equal marketing strategies compared to competitors
4. No impact on marketing strategies compared to competitors

What is the objective of corporate social responsibility?

1. To focus solely on maximizing profits
2. To prioritize shareholder interests over all other stakeholders
3. To ignore social, environmental, and ethical issues in business objectives
4. To consider social, environmental, and ethical issues in business objectives

Write down 3 things you learned in this lesson.

Have students enter three things they learned in this lesson. With this they can indicate their own learning efficiency of this lesson.

Write down 2 things you want to know more about.

Here, students enter two things they would like to know more about. This not only increases involvement, but also gives them more ownership.

Ask 1 question about something you haven't quite understood yet.

The students indicate here (in question form) with which part of the material they still have difficulty. For the teacher, this not only provides insight into the extent to which the students understand/master the material, but also a good starting point for the next lesson.