Business Strategy: Audits, Control, and Mergers
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Social and Environmental Audits
Social audit: A formal review of a company's endeavors in social responsibility. It looks at factors such as the company’s record of charitable giving, volunteer activity, energy use, transparency, work environment, and worker pay. A social audit is optional.
Environmental audit: An independent third-party assessment of the current status of an organization’s compliance with local environmental laws and regulations. (Basically the same thing as a social audit in terms of process).
Span of Control
The number of subordinates that a manager or supervisor can directly control. For example, if one production manager has ten subordinates, his span of control is ten.
Narrow Span of Control
- Advantage for a firm of tight