Business Ethics Chapter # 5 The Corporation & Internal Stakeholders (Values-Based Moral Leadership,Culture,Strategy & Self Regulation)

Leader & Stakeholder Management A person that holds a dominant or superior position within its field, and is able to exercise a high degree of control or influence over others. Stakeholder Management The process of forming, monitoring and maintaining constructive relationships with investors by influencing their expectations of gain resulting from their investment appropriately.

Stakeholder value-based Approach Stakeholder value-based approach determines whether the leaders/culture : Are integrated (to join together) Building relationships Protecting the organization or create and generate mutual benefits and opportunities Develop and sustain short term or long-term goals and relationships

Vision,Mission & Values Description of what an organization would like to achieve or accomplish in the mid-term or long- term future. Mission Is a brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?“ Values Values are those things that really matter to each of us ... the ideas and beliefs we hold as special. for example, Caring for others.

Leadership & Responsibilities Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Organizational leaders are ultimately responsible for the profitability of a company.

Responsibilities Set the vision, mission and direction Create and sustain a legal and ethical culture throughout the organization. Articulate and guide the strategy and direction of an organization. Build and sustain collaborative stakeholder relationships. Reward ethical conduct.

Organizational Culture A corporation’s culture is the shared values & meanings its members hold in common, which are articulated and practiced by an organization’s leaders The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an organization.

Observing Organizational Culture Organizational cultures are both formal and informal. Studying the physical setting Reading what the company says about its own culture. Watching how people spend time Understanding career path progressions Observing anecdotes and stories

High-Ethics Companies 1. Principle 1 high ethics firms are at ease interacting with diverse internal and external stakeholder groups. The ground rules of these firms make the good of these stakeholder groups parts of the firm own good. 2. Principle 2 high ethics firms are dealing with fairness. Their ground rules emphasize that the other persons interests count as much as their own. 3. Principle 3 in high ethics firms’ responsibility is individual rather than collective individuals 4. Principle 4 the high ethics firm sees its activities as having a purpose.

Cultures in Trouble Companies that reinforce secrecy, hidden agendas and physical settings that isolate executives from managers and employees and emphasize status over human concern often are cultures in trouble. An inward focus A short term focus Morale and motivational problems Emotional outbursts Fragmentation and inconsistency in physical settings or work habits