Ethical Leadership Task 2 - MBA C206 - C206 Ethical Leadership Task 2

1738 words - 7 pages

Ethical Leadership C206: Task 2
Ethical Leadership: C206
MBA Program

Ethical Leadership C206: Task 2
A. Purpose of Corporate Social Responsibility (CSR)
Social Responsibility (CSR) should be thought of in terms of many different
types of responsibility (Trevino & Nelson, 2014). These types of responsibilities are
broken down into philanthropic, ethical, legal and economic. Each of these plays a vital
role in the companys success through its primary and secondary stakeholders.
Stakeholders are individuals who are affected by the business and its actions and who has
a stake in what the organization does and how it performs (Trevino & Nelson, 2014).
That means that anyone who works for, competes against or give business to the
organization can be considered a stakeholder. Two examples of primary stakeholders at
Paradigm Toys are employees who work for the company and customers who purchase
from the company. Two examples of secondary stakeholders at Paradigm Toys are direct
competitors and the government.
There are multiple ways that the board of directors at Paradigm Toys can meet
their corporate social responsibility regarding their primary and secondary stakeholders.
The first way that they can meet their CSR with their primary stakeholders is by creating
jobs. Paradigm Toys can help their CSR with their employees by ensuring that each of
the employees are feeling valued through the roles that they play in the company. Good
employees should be rewarded through recognition and promotions. When employees
feel valued, they will be creative, loyal and hardworking. This only benefits the business,
because when you take care of you employees, your employees take care of your
Another way that Paradigm Toys can meet the expectations of CSR through their
secondary stakeholders is by keeping up with their competitors. A way that they can do
Ethical Leadership C206: Task 2
that is through a SWOT analysis of their top competitors. Competitors help a business
stay on top of social demands. For Paradigm Toys those social demands are new and
innovative toys, social media presence and competitive pricing.
B. The Importance of Ethical Leadership and Ethics Audit
An ethical culture is important to have because employees are influenced by the
social statuses around them. This means that they are looking outside themselves when it
comes to how they think and act (Trevino & Nelson, 2014). A good culture can be a great
source to ensuring that the employees in your business are making good ethical choices
and judgments in their day to day activities.
The role that Paradigm Toys leadership plays in fostering an ethical culture is
extremely important. Any type of culture in a company starts from the top and works its
way down. If the leadership at Paradigm was making poor choices on how to treat their
stakeholders, the business would crumble. On the other hand, if the leadership at the top
fostered good judgement...

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