Week 10 CSR strategy and leadership. After the genocide in Rwanda the situation was awful. There was...
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Transcript of Week 10 CSR strategy and leadership. After the genocide in Rwanda the situation was awful. There was...
Week 10
CSR strategy and leadership
“After the genocide in Rwanda the situation was awful. There was also no infrastructure to get to the people in
need. And so there were United Nations convoys that just couldn’t get through. This delegation literally just sat there on the road for hours going nowhere. By the time
they finally reached their destination, they discovered that Coke had already been there for two weeks
distributing what they needed. What a fascinating thing – Coke got there before the UN. It shows you just how
powerful the global market is and this brand in particular… I suppose if Microsoft needs to be there,
they’ll be there too.”
NGO administrator
I discern two sorts of inequality in the human species: the first I call natural or physical…. ; the second we might call moral or political inequality because it derives from a sort of convention, and is established, or at least authorised, by the consent of men. This latter inequality consists of the different privileges which some enjoy to the prejudice of others….
Rousseau (1755) - A Discourse on Inequality
Definitions of power
Power is the capacity to affect organisational outcomes Mintzberg
Power is that which enables A to modify the attitudes or behaviour of B Handy
The concept of economic growth
shareholder value predicated in growth growth of the firm:
market share competition
growth in the market globalisation market development product development
Sustainability of growth
maintaining supply / demand equilibrium unpredictability of demand supply of raw materials finiteness of demand
Demand creation
demand creation through: market development product development replacements fashion
costs of demand creation: R & D marketing effects upon supply curve
Goal Congruence
alignment of goals for mutual benefit goals of organisation goals of individual divergence = sub-optimality convergence = optimal performance
Organisational goals
profit maximisation cash flow return on capital employed growth quality long term stability survival satisficing
Managerial goals
rewards financial non - financial
status recognition security promotion
..being the managers of other people's money than of their own, it cannot well be expected that they should watch over it with the same anxious vigilance with which partners in a private copartnery frequently watch over their own. Like the stewards of a rich man, they ... consider attention to small matters as not for their master's honour and very easily give themselves a dispensation from having it.
Adam Smith – The Wealth of Nations
Operational control
business planning and budgeting reporting system measuring performance correction of deviations feedback
Managerial involvement in the control system
setting of targets taking action to achieve plan receiving rewards for performance
Individual behaviour
“Every managerial decision has behavioural consequences. Successful management depends upon the ability to predict and control human behaviour” McGregor
Theory X people dislike work
Theory Y people are conscientious
Styles of leadership
authoritarian laissez - faire democratic variables
follower leader situation
Individual behaviour
“Every managerial decision has behavioural consequences. Successful management depends upon the ability to predict and control human behaviour” McGregor
Theory X people dislike work
Theory Y people are conscientious
Criteria for an interesting job
demanding but with variety allow learning decision making and responsibility increased understanding meaningful relationship with outside life promise of a desirable future
Emery & Thorsrud (1963)
Motivation Theory
Expectancy Theory Lawler
Two Factor Theory hygiene factors motivators Herzberg
Equity Theory Adams
The Hawthorne Studies
Goal Congruence
goals of organisation goals of individual divergence = sub-optimality convergence = optimal performance
Organisational goals
profit maximisation cash flow return on capital employed growth quality long term stability survival satisficing
Managerial goals
rewards financial non - financial
status recognition security promotion
Risk and rewards
bounded rationality environmental uncertainty short term focus risk minimisation managerial objectives v corporate objectives
Feedback
timeliness relevance meaningfulness accuracy communication rewards
Legitimating decisions
decisions made by individuals / groups decisions implemented by organisations transfer of decision ownership rational basis for decisions empowerment of decision makers through expertise
Governance
The exercise of political authority and the use of institutional resources to manage society's problems and affairs World Bank
Inter-state negotiation Global governance?
The principles of governance
Transparency Rule of Law Participation Responsiveness Equity Efficiency & Effectiveness Sustainability Accountability
Corporate governance
Good governance = Good performance Sustainability Social responsibility
Principles of corporate governance
Transparency Accountability Responsibility Fairness