Organisation design & structures · Core
Business unit
Also called: BU
ELI5
A distinct organisational unit responsible for a product, market or set of results.
Used in conversation
“Who is accountable for business unit, and who is affected by it?”
Pitch context
You will see “Business unit” in organisation plans, workforce reviews, change programmes and people reports when the discussion reaches organisation design & structures.
Why it matters: In organisation design & structures, the definition can change who is affected, accountable, protected or entitled to act.
Caution
Employment law and workplace practice vary by jurisdiction and agreement.
Sources & evidence · 2
Direct term-level sources and supporting source families.
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Bureau of Labor Statistics — BLS GlossaryDirect source · primary · checked 2026-08-16