ï»¿INTD670-1403A-01: Leadership and Ethical Decision-Making
Who are the stakeholders in this situation?
Letâ€™s start with well known Freeman's (1984) definition of stakeholder as "any group or individual who can affect or is affected by the achievement of the organization's objectives" (p. 46). From the corporate point of view there are quite a few stakeholders in this situation: UWEAR, Peninsula Hotel chains, Tom, Bill, Joe, company employees, UWEARâ€™s competitor THREADS4U, there are also families of company employees. Of course not all the stakeholders are equal, some are primary and some are secondary. And the main of company management is to create a classic â€œwin-winâ€ situation ...view middle of the document...
That is why he was using his friendship with Joe Smith in order to get favorable, extremely low prices for last yearâ€™s contract. If Bill Bateman will manage to get 10% price cut this year, he will show himself as CEO who can continuously deliver progress results.
Tom Tramplin, CEO of UWEAR has somewhat similar responsibilities as Bill Bateman: meeting quarterly, annual budget numbers, maximizing company growth, profits, minimizing costs. The contract with Peninsula Hotel Chains is important for UWEAR, and obviously it is bringing some profits, unfortunately they were considerably low last year and the contract is jeopardy of being signed this year.
Joe Smith, a salesperson of UWEAR, who at the same time is friends with Bill Bateman has responsibility of signing a contract and securing his 50% region sales with Peninsula Hotel Chains, but at the same time managing to have contract pricing beneficial to his own company, otherwise he might get fired.
Samantha, who is a salesperson of THREADS4U, has responsibility to her company to win back Peninsula Hotel Chains contract even by initial price cut that might harm company profits
Provide at least 4 ethical responsibilities for each stakeholder.
Joeâ€™s ethical responsibilities would include: being honest, donâ€™t misrepresent something to a customer, working to the benefit of your employer (UWEAR company, who is paying Joeâ€™s paycheck), willing to trade short term loss for long term gain (this could be an example of when last year Joe gave Bill Bateman a very low prices, which almost got him fired from UWEAR, possibility cost him his sales bonus, but nevertheless this secured contract with Peninsula Hotel chains- that could be perceived as short term loss with investment into a long term gain).
Tim Tramplin, representing his company UWEAR has following ethical responsibilities: taking care of his employees, wisely managing budgets, making sure payroll is made each month, providing best product/services to his customers, best customer service, also responsibilities of providing profits for shareholders who invested into growth and development of UWEAR. Business ethics are based on honesty, integrity and leadership. Tim Tramplin must show that he keeps his promises about taking good care of UWEAR company, providing best of his knowledge, talents and leadership, leading this organization to success.
Bill Bateman, as a main representative of Peninsula Hotel Chains has similar ethical responsibilities: leading with honesty and integrity in business, working with the best use of his knowledge, talents and expertize in order to satisfy stakeholders, who invested money. His ethical responsibilities would also include taking care of environment, providing safe working conditions for his employees, providing fair business conditions for each of vendors that work with.
Samantha from THREADS4U would probably have to struggle with some of her ethical responsibilities as they might not agree with the...