Beruflich Dokumente
Kultur Dokumente
Internal Stakeholders
Internal
Stockholders
Employees
Managers
Senior Executives
Board members
External Stakeholders
All other individuals and groups with
some claim on the company such as:
External
Stakehold
ers
Customers
Suppliers
Creditors
Governments
Unions
Local Communities
General public
induceme
nt
contributi
on
The
Compa
ny
inducement
contributi
on
Internal
Stakehold
ers:
Stockholders
Employees
Managers
Senior
Executives
Board
members
Impact Analysis
The impact analysis helps companies decide
what stakeholders are most critical to
survival.
Steps of an Impact Analysis:
Identify
Identify
Identify
Identify
Identify
stakeholders
their interests and concerns
what claims they are likely to make
most important stakeholders
the resulting strategic challenges
The Mission
The Vision
Values
Goal of the Corporation
The Mission
Describes what the company does
Can be product oriented:
Focus on the product the company
produces
12
The Vision
It is the desired future state of a
company.
Tells what the company would like to
achieve
Intended to stretch a company by
articulating its ambitions. Meant to
be an attainable goal that will
motivate employees
Values
Tell how managers and employees should
conduct themselves. How they should do
business.
Establishes the basis of the organizational
culture
Organizational culture is the set of values,
norms, and standards that control how
employees work to achieve an organizations
mission and goals
Organizational culture is an important source of
competitive advantage
Major Goals
Most companies operate with goals
of profitability and profit growth.
Problems arise when managers
overemphasize profit growth.
Some companies tend to cut costs to
increase short term profits, but the
cuts can be detrimental to the
company in the long run.
Characteristics of
Well Constructed Goals
Ethical Issues
(2000s contd)
Ethics in Strategy
Ethical Issues:
Self Dealing
Information Manipulation
Anti-Competitive Behavior
Opportunistic Exploitation
Environmental Degradation
Corruption
Ethics
Accepted principles of right and wrong that are govern the
conduct of a person, the behavior of members of a profession
or the actions of an organization
Business Ethics
Accepted principles of right or wrong governing the conduct of
business people
Ethical Dilemmas
Situations where there is no agreement over exactly what the
accepted principles of right and wrong are, or where none of the
available alternatives seems ethically acceptable
Self-Dealing
Occurs when managers find a way to feather their own nests
with corporate dues
22
Monitoring Managers
Governance Mechanism
Purpose is to monitor agents, evaluate
their performance, and take corrective
action to reduce the scope and
frequency of agency problems
Goal is to align stockholder and
management interests
Governance Mechanisms
Four Main Types:
Board of Directors- members elected
by shareholders to make sure business
decisions are in the shareholders best
interest
Stock-based Compensation- Pay-forperformance systems to reward ethical
managers
Governance Mechanisms
(Types
contd)
Financial Statements- reports that
give consistent, detailed, and accurate
information about how efficiently and
effectively the company is run
The Takeover Constraint- The risk of
being taken over by another company
Ethical Consideration
Hiring and Promotions
The act of hiring employees whose ethical
principles are in line with the companys
ethics.
Organizational Culture
The culture within the business that should
explicitly articulate ethical values and place
a strong emphasis on ethical behavior.
Ethical Consideration
(contd)
Organizational Leadership
Once these values are explicated, it is
important that leaders give life and
meaning to these words by acting upon
them.
Ethical Officers
Individuals responsible for making sure
employees are trained to be ethically
aware and that ethical considerations enter
the business decision making process.
2012 South-Western, a part of Cengage Learning
Ethical Consideration
(contd)
Strong Corporate Governance
Rules that are established to make sure
that managers adhere to ethical norms,
and in particular, to make sure that
senior managers do not engage in selfdealing or information manipulation.
Moral Courage
Courage that enables managers to walk
away from a decision that is profitable,
but unethical.