The distinction between effectiveness and efficiency is crucial.

Effectiveness refers to the degree to which an organization achieves its goals and fulfills its mission, while efficiency pertains to how well resources are utilized to achieve these goals with minimal waste.

Although both are important, effectiveness is more critical for several reasons:

1. Firstly, effectiveness directly relates to an organization's strategic objectives.
   A company may be efficient in reducing production costs, but if its products do not meet market demands, the business is ineffective.

2. Secondly, effectiveness impacts stakeholder satisfaction and trust, because they are primarily concerned with the outcomes and value delivered by the organization.

3. Moreover, effectiveness encompasses quality, customer satisfaction, and compliance with regulations and standards.
   Efficiency might improve short-term metrics but can lead to quality compromises.

4. Additionally, effectiveness requires alignment between strategic goals and day-to-day operations.
   Auditors examine if operational activities support strategic objectives, ensuring coherence within the organization.