Topic 1.5 · Vision
Vision: Core Values, Competencies, Mission and Goals
Core values and core competencies guide decisions. Vision and mission statements communicate purpose. For-profits, social enterprises and nonprofits pursue different goals.
Learning objectives
- 1.5.AExplain how core values and core competencies shape business and individual decision making.
- 1.5.BDevelop or evaluate a vision statement and/or mission statement based on a business’s goals and values.
- 1.5.CDescribe the goals of businesses, social enterprises, and nonprofit organizations.
Objective statements © College Board, quoted from the Course and Exam Description.
Core values vs. core competencies
| Core values | Core competencies | |
|---|---|---|
| Question answered | What do we believe in? | What are we especially good at? |
| Examples | Creativity, excellence, transparency, empathy, reliability | Innovation, customer service, communication, ethical behavior, efficiency |
| How businesses use them | Align employees to a shared purpose and guide decisions | Choose which opportunities to pursue and where to put resources |
Individuals use the same ideas. Your values and strengths should shape which education, career and job opportunities you pursue. Someone who values helping others and is skilled at explaining ideas might look at teaching or healthcare.
Vision and mission statements
- A vision statement is short and aspirational. It states core values and what the business hopes to become.
- A mission statement describes what the business does and how it will reach its long-term goals.
Both communicate goals and values internally, to guide decisions and give employees shared purpose, and externally, to inform customers and investors.
Key terms
- Core values
- Defining beliefs and principles that guide an individual's or business's actions (e.g., creativity, transparency, reliability).
- Core competencies
- Capabilities, skills and expertise that help an individual or business outperform rivals (e.g., innovation, customer service, efficiency).
- Vision statement
- A concise description of a business's core values and aspirations: what it hopes to become.
- Mission statement
- A description of what a business does and how it will achieve its long-term goals.
- Social enterprise
- A business that seeks profit while also pursuing social objectives through its products, operations or financial model.
- Nonprofit organization
- An organization that serves the public good rather than earning profit for owners. Surplus funds must be reinvested in the organization.
- Profit
- Revenue minus costs. Businesses raise profit by increasing revenue and/or decreasing costs.
Want to track your progress?
Sign in to mark lessons complete, earn XP and resume where you left off.
Sign in