A company’s financial statements give investors, managers, and other “users” a complete, honest look at its financial health. Finished financial statements follow a standardized format, letting investors compare different companies in the same industry apples-to-apples. These include Income Statements, Balance Sheets, and Cash Flow statements.
Every business requires a solid risk management program that addresses property, liability, customers, employment, products, services, and everything else an organization. It should provide adequate internal control mechanisms, and a plan on what to do if something goes wrong.
Leading and directing are important management functions, but usually do not appear in the main job description. A great manager needs to be able to both lead their team and direct their operations – failing either of these roles is a recipe for disaster!
Social Responsibility means managers are accountable to society at large, not just their shareholders. This is becoming an increasingly important pillar of management theory in the 21st century, as both the public and investors are expecting certain levels of social accountability.
Planning plays a crucial part in creating a business plan and strategic plan in that it reinforces a company’s mission, visions, and goals that are used to develop and implement strategy, competitive advantage, and achieve effectiveness and efficiency in how a business operates.
“Business Ethics” defines what is right and wrong in a business – not necessarily what is or is not illegal. It is the responsibility of everyone in any organization to maintain high levels of business ethics, as businesses who fail to do so lose the public trust, and the ability to continue to do business, very quickly.