Page 239 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Unit 12: Behavioural Implementation

12.6 Summary Notes

A firm’s stakeholders are the individuals, groups, or other organisations that are affected
by and also affect the firm’s decisions and actions.

An organisation needs to have an effective stakeholder management system in place,
which provides a great support in achieving its strategic objectives.
Strategic leadership establishes the firm’s direction by developing and communicating a
vision of the future and inspiring organisation members to move in that direction.
A company’s culture is manifested in the values and business principles that management
preaches and practices. An organisation’s culture can exert a powerful influence on the
behaviour of all employees.

Ethics refers to the moral principles and values that govern the behaviour of a person or
group. Ethics helps us in deciding what is good or bad, moral or immoral, fair or unfair in
conduct and decision-making.

Corporate social responsibility (CSR) consists of “actions that appear to further some
social good, beyond the interests of the firm” It includes such topics as environmental
‘green’ issues, treatment of employees and suppliers, charitable work and other matters
related to the community.

Corporate Social Responsibility is a company’s duty to operate its business by means that
avoid harm to other stakeholders and the environment, and also to consider overall betterment of
society in its decisions and actions.

12.7 Keywords

Culture: The beliefs and behaviors that determine how a company’s employees and management
interact and handle outside business transactions.
Corporate Social Responsibility: A company’s sense of responsibility towards the community
and environment (both ecological and social) in which it operates.
Deculturation: The removing or abandoning of one’s own culture and replaces it with another.
Ethics: Motivation based on ideas of right and wrong.

Stakeholders: A person, group, or organisation that has direct or indirect stake in an organisation.
Strategic leadership: A manger’s potential to express a strategic vision for the organisation, or
a part of the organisation, and to motivate and persuade others to acquire that vision.

12.8 Self Assessment

Fill in the blanks:
1. The company must place its stakeholders on a ……………………..based on their level of
influence or impact.

2. A manager is concerned with short term activities of the organisation, while a
………………..is concerned with the long term aspects.
3. Strategic leaders must also play a central role in creating a ………………. organisation.

4. In general, …………………may be defined as a system of right and wrong.

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