2. International Business Strategy LON301BUS Stakeholder Power and Ethics Unit: 6 Knowledgecast:1

3. Demonstrate a sound appreciation of current strategic management concepts Communicate an in-depth understanding of the complexity of the environment and its applications on decision-making process Assess current developments in the organisational environment and alternative responses related to strategy Module Learning Outcomes

4. Strategic Position - Stakeholder Power (Expectations & Purpose) Corporate Governance  “Corporate governance is concerned with the structures and systems of control by which managers are held accountable to those who have a legitimate stake in an organisation.” (Johnson and Scholes 2008:133)

5. Strategic Position - Stakeholder Power (Expectations & Purpose) Corporate Governance is influenced by:  Role of the governing bodies  Ownership structures  Operation of governing bodies  Influence on strategy  Rights of external stakeholders

6. Ethical Stance Short term shareholder interests Longer-term shareholder interests Multiple Stakeholder obligations Shaper of society Corporate Social Responsibility

7. Stakeholder Mapping Level of Interest Power LowHigh LowA – Minimal Effort B – Keep informed HighC – Keep satisfied D – Key players

8. Demonstrate a sound appreciation of current strategic management concepts  We have explored stakeholder power and ethics Communicate an in-depth understanding of the complexity of the environment and its applications on decision-making process  How do businesses develop a consistent ethical stance? Assess current developments in the organisational environment and alternative responses related to strategy  Corporate Social Responsibility has grown in influence over the last decade Knowledgecast Summary

10. Virtual Tour In this seminar we are going to take a virtual tour together of one of the world’s largest fast moving consumer goods multi-nationals, Unilever plc (www.unilever.com). In taking this tour we are seeking to identify the strategic position of Unilever and how its stakeholders influence its strategy. During the tour we are seeking to answer three key questions; 1.Who are Unilever’s key stakeholders and what do they expect from the business? 2.How do these stakeholders influence the business? 3.What evidence can you find of Unilever’s ethical stance? Seminar

11. Tour Review Having ‘toured’ Unilever and understood its strategic position and the influence of its stakeholders; now turn to the case study organisation you are working on and collaborate with your consultancy group to research the organisation’s stakeholder power. You may choose to use the same questions from the seminar… 1.Who are the organisation’s key stakeholders and what do they expect from the business? 2.How do these stakeholders influence the business? 3.What evidence can you find of the organisation’s ethical stance? Group Activity