Global Concept Research Paper
Applied Concept Paper
Unit A:
Chapters 2 & 3
Due February 18, 2015
Philip Scherrer
Z23216164
Global Strategy and Policy
Monday & Wednesday 8am-9:20am
MAN 4720-004
Professor Harry Schwartz
Major: Business Management
Executive Summary…………………………………………………………..3
Abstracts………………………………………………………………………4-6
Concepts………………………………………………………………………7-8
Analysis……………………………………………………………………….9-12
Conclusion…………………………………………………………………….13
Appendices/Works cited……………………………………………………..14
**(Articles are attached at the end of the paper)**
Executive Summary
The purpose of this applied concept paper is to link some keys terms from our required course text with relevant current events in the business world. This document will better enable me to understand …show more content…
the company culture and correlate business terms to everyday life. The concepts detailed in this research paper are taken directly from the key terms bank at the end of chapters 2 & 3. The keywords come from the Concepts in Strategic Management and Business Policy: Globalization, Innovation, and Sustainability textbook written by Thomas Wheelen, David Hunger, Alan Hoffman, and Charles Bamford. The key terms chosen for this paper are codetermination, corporate governance, transformational leader, ethics, social responsibility, and whistle-blowers. Chapter 2 & 3 highlights some important business ideals and practices.
For example;
The role of corporate governance and how it coincides with the board of directors and top management in the case of UK's HSBC secret scandal.
The role of social responsibility given to strategic decision makers, like JP Morgan's Tim Keefe, in the efforts of hiring hundreds of thousands of displaced veterans.
The role of ethical decision making in the Virginia House and Senate, who are struggling to come to terms with what amount of gifts received are still within moral bounds.
This paper was instrumental in me being able to identify the strategies, missions, and leader characteristics that lead to socially responsible, ethical, and corporately governed businesses.
1.) ‘We need a culture change’: Senator applauds Ricketts’ pick to lead troubled Corrections Department, Paul Hammel-World Herald Bureau, January 21, 2015 (Hammel).
This article focuses on the state corrections facility of Nebraska that has previously been run poorly and released unstable inmates, one of which killed four people. The corrections department for the Nebraska state prison should be on the way up, due to a new corrections director from Washington State. Governor Pete Ricketts appointed Scott Frakes, who has been head of Washington Corrections for 32 years, to reform Nebraska's state prison. He will oversee 5221 inmates in 10 state prisons that, in total, are 2000 inmates above capacity. The prison needs a more efficient rehabilitation program to correct 30% of all prisoners for facilitation of public safety once prisoners are released. Governor Ricketts believes that Frakes can lead the needed culture change.
2.) ‘Corporate Governance is the Very Essence of a business’: Stephen Green, Dina Medland, February 10, 2015 (Medland)
In this article, Medland explains that the UK's corporate governance policy is to "comply or explain". However HSBC has had a problem with this plan especially since after 8-10 years of secrets and noncompliance, it gets incredibly hard to explain. With the secretive operations of CEO Stephen Green, HSBC Swiss bank has successfully hidden 30,000 undeclared accounts and aided criminal businessmen beat the tax system by storing 120 billion dollars in unreported income between 2005 and 2007. Thanks to Herve Falciani, light has been cast on the corrupt business doings of HSBC. In 2010, Stephen Green stepped down from the chairman to become a trade minister in the House of the Lords in the new UK government led by David Cameron (Medland). However, even with Stuart Gulliver as the new CEO, the HSBC has taken no responsibility. Her Majesty's Revenue and Customs, the UK's version of IRS, has taken no action with the 6000 names handed over. The scandal will just continue under current circumstances and present management.
3.) German Labor Chief: VW Must Halt Anti-Union Group, Erik Schelzig, Associated Press, November 14, 2014 (Schelzig).
In Nashville, Tennessee, Volkswagon has been working side by side with anti-labor groups. The President of IG Metall and spokesperson of the German union, Detlef Wetzel, has called out the Chattanooga plant to show a majority of United Auto Worker presence. According to German law, workers hold 50 percent of the seats on the board but the U.S Volkswagon plant has no formal employee representation. Instead, the U.S law says it must work with an independent union (American Council of Employees) to create a German-style council. The American Council of Employees defeated the UAW, and they filed a complaint with the National Labor Relations Board. The UAW was then forced to halt the claim to finish the new SUV in exchange for the promise of recognition as the bargaining partner in Tennessee after the completion of the SUV.
4.) 100,000 Jobs Mission Hires Over 200,000 Veterans. Business Wire, February 9, 2015 (Business Wire)
JP Morgan Chase has led the alliance of 11 initial private corporations on the 100,000 Jobs Mission to hire 100,000 displaced veterans by 2020. 184 companies now make up the coalition that started in 2011 and by December 31, 2014 they have collectively hired 217,344 veterans and spouses. Among the 184 companies are JP Morgan, Chipotle, Amtrak, and Timken. They believe that veterans contribute technical skills, a high level of reliability, and unparalleled leadership to an organization so they have pledged to hire 300,000 veterans.
5.) Baby Steps on ethics in Virginia, Editorial Board, February 8, 2015 (Editorial Board)
This review of Virginia lawmakers puts them in very critical light to boost their reforms on limits to gifts. This limit was in response to the governor, Robert F. Mcdonnell, being convicted for accepting gifts from a dietary supplement company in exchange for backing and support. Last year the cap was limited to 250.00 of tangible gifts that opened a loophole for no limit on trips or services. Lawmakers in Virginia are not happy, to say the least. Now they are looking at an even tighter constraint of only $100.00 on ALL gifts that will also close the loophole. They are also talking about an outside ethics commission that would hold investigatory and subpoena powers. Virginia is ranked 4th for having the worst standards out of all 50 states, and they currently have no limits on campaign contributions. 6.) HSBC ‘SwissLeaks’ leaker urges more support for whistleblowers, AFP, February 9, 2015 (AFP)
Herve Falciani, a former IT employee of HSBC, stole the cache of client files and then turned them over to French police. The data led to the discovery of 119 billion dollars in unreported income from wealthy tax evaders in over 200 countries. Falciani calls for more protection and financial compensation for whistle-blowers so that more may step forward.
1.) Transformational Leader: This type of leader wields great respect. He or she provides a company with a vision for change in the right direction by articulating the vision to each level of the organization. They serve as a role model for the company to emulate, and communicate high standards to employees and leads by example.
2.) Corporate Governance: This practice determines the direction and performance of the company by creating a system of checks and balances between the board of directors, top management, and shareholders. They each play a role in making the right decisions for the direction of the company in the best interests of its shareholders and stakeholders.
3.) Codetermination: This means giving employees seats on the Board of Directors to make sure that company policies are also in the best interest of its employees. Operating under these conditions, employees can expect optimal working conditions, wages, benefits, status, and workers’ rights.
4.) Social Responsibility: This philosophy promotes taking responsibility for the society in which a company operates and adding shareholder value are its first priorities over making a profit. The primary function of social responsibility is providing products and services that give value and satisfy the needs of the society in which they operate. It extends to the environment sustainability efforts to reduce pollution, following the laws, enhancing the culture of corporations, helping the poor in rough economic times, hiring veterans or people with disabilities, and much more.
5.) Ethics: Consensually accepted standards of behavior for an occupation, trade, or a profession.
6.) Whistle-blowers: These are employees who report unethical and illegal acts of a corporation. They are protected under the Sarbanes-Oxley Act.
Transformational Leader
"We need a culture change here.
He's been part of a positive culture in another state. I believe we got the right guy," says State Sen. Bob Krist of Omaha (Hammel). Scott Frakes is well known for his transformational leadership style in the Washington State prison system. He transformed 2,800 state employees, in six prisons, which were responsible for correcting 8000 inmates. His progressive policies in reform led to a decrease of 35% in use of solitary confinement that he believes can make matters worse for mentally ill prisoners. He was also responsible for overseeing the addition of a 2000 bed prison in Washington to combat overcrowding. Frakes is a transformational leader because he created a movement of change with an articulated vision for the movement and actively served as a role model. His track record has given him the ability to command respect because he has shown that he can successfully formulate and implement effective strategies. Frakes will be transforming ten state prisons in Nebraska by reducing overcrowding, use of solitary confinement, and ensuring heightened community supervision once inmates are released to protect the public. Frakes goal as a transformational leader will be to treat and restore 30% of the 5221 mentally ill inmates to reduce crowding but not until they are safe for the public. Nebraska is also in need of a transformational leader to re-rail the entire department because the former leader, Mike Kenney, prematurely released …show more content…
hundreds of prisoners that put the public at risk. One inmate even killed four people after he was released. Frakes will train employees by communicating high-performance standards, and he will empower them to meet those standards by delegating certain tasks that show confidence in his employees.
Corporate Governance In this example, HSBC's corporate governance has failed shareholders and now, to restore faith; they are looking for HSBC to take accountability for their actions by explaining.
Top managers of the corporation have followed the corrupt corporate culture of its inside board of directors to line their own pockets instead of looking out for the best interests of its shareholders. HSBC's corporate governance system is still corrupt because of the corporate culture so adding new members to the board is likely to be unsuccessful. HSBC needs to have a complete reconstruction of management as well as a new board of directors to successfully become compliant and regain shareholder trust. The old corporate governance system was one of widespread collusion with secret names for clients and total disrespect for the law by knowingly committing illegal actions. There is no corporate governance in HSBC or in HMRC, a tax agency that was in cahoots with keeping information secret from law enforcement agencies. The inside directors have kept secrets from outside directors, so they lacked the knowledge and involvement to give guidance to and monitor top management. Then to make matters worse, administrators and members of top management left without showing accountability for their actions. The board of directors is supposed to guide decisions in a responsible way that promotes corporate governance for the long-term success of a
company.
Codetermination The U.S anti-labor union acts in the interest of the company instead of its workers, that goes against Germany's policy of codetermination. The U.S has no such policy of having workers influence management. Wetzel says, "It is our objective to guarantee also under the politically difficult circumstances in the United States that labor union rights are respected, and codetermination in the plant is possible." Codetermination means including workers of the corporation on its board. These workers will bargain for quality working conditions, economic assistance, insurance, rights, and status. German success is attributed to codetermination because employees with a greater voice in the workplace mean higher productivity and lower occurrence of strikes. Germany's codetermination policy is a two-tier system that is comprised of board of managers to manage activities that are chosen by the supervisory board. The supervisory board decides on company policy and strategies, who are voted on by employees and shareholders. So far, the U.S has not recognized the UAW as the chief bargaining unit for the Volkswagon plant in Tennessee. However, the recent policy should give recognition after the new SUV is completed but guidelines lacking detail could stall commitment even further.
Social Responsibility
JP Morgan Chase has been a leader in corporate social responsibility or CSR. They have shown dedication to helping our veterans who put their lives on the line for all of us. Acting responsibly in this case means that companies have responded by giving veterans their lives back since so much of their lives at home have been lost. Getting our veterans back on their feet by providing them and their families with jobs is the epitome of acting sustainably and socially responsible. This generous act was discretionary social responsibility by Chase because it was not required, and many people do not expect actions like these. Finding jobs for displaced veterans has put their skills to good use, reduced unemployment levels, and increased stakeholders trust and commitment in these companies. Such companies have also increased the bottom-line while reviving the social involvement of veterans, and eased the fear of a return to nothing for prospective military recruits. Social Responsibility leaders must form a positive relationship with the society at large in which they hold operations.
Ethics
Do the Virginia lawmakers have an indigent ethical standard or perhaps a long jaded past of improper guidance from a few, leading to a feeling of self-entitlement for all? The ones that have been in the system the longest are creating a sense of entitlement for the entire culture because they want to continue lining their pockets. They failed the ethical standards report and are in danger of public ridicule and distrust. Ethics is about behaving acceptably and from this report you can see that they are gaming the system with no accountability. Even the campaign contributions are being spent on food, groceries, and fuel expenses. Officials are accepting gifts like lavish hunting trips in exchange for giving private ventures their support. Where did the ethics go there? The bottom line here is that government officials cannot govern themselves ethically to do the right things so they need an entity that will enforce the laws and code of conduct. Gifts in exchange for influence is unethical because it creates an uneven playing field for those who expect fair dealings
Whistle-blowers
Herve Falciani is a whistle-blower protected under the Sarbanes-Oxley Act. Under this Act, it is illegal to retaliate against anyone who reports unethical or illegal behavior. However, Switzerland has placed Falciani on the wanted list for stealing data. Are whistle-blowers actually protected? According to Falciani, whistle-blowers need more legal, professional, and reputational support. Fewer people put themselves in Falciani's shoes because they fear retaliation. Although financial compensation exists with entities like the U.S. False Claims Act, more compensation would lead to more of an incentive for whistle-blowers. Further compensation would also serve as a deterrent for unlawful activity because firms will be paranoid about the secrecy of their employees. Corporations should develop and enforce a code of conduct to set the standards for an ethical culture, and this will help eliminate the temptations to act unethically.
This project was particularly helpful to me in understanding the fundamentals of ethics, social responsibility, codetermination, corporate governance, and what it takes to be a transformational leader. I have been able to see the connections between what we learn in class and what is going on in the world around us by connecting the concepts found in Concepts in Strategic Management and Business Policy. This assignment has also caught me up to date with current events in the business world. Keeping up with current events like "100,000 Jobs Mission Hires Over 200,000 Veterans" could even help socially responsible investors, like myself, choose the right companies to invest. Sustainability will be leading the way for many decisions leading to investment ventures in the future. A company who takes care of society and the environment usually points to a company who will look out for the best interests of its shareholders as well. Each article included in my paper had a profound effect on shaping my business views, and they will be incorporated into my strategic decisions in the future. Even though some of them were based on how not to act, I think they served their purpose as behavior modifiers.
100,000 Jobs Mission Hires Over 200,000 Veterans. (2015, February 9). Retrieved February 16, 2015, from http://www.businesswire.com/news/home/20150209005039/en/100000-Jobs-Mission-Hires-200000-Veterans#.VOI-o010w3s
Baby steps on ethics in Va. (2015, February 8). Retrieved February 16, 2015, from http://www.washingtonpost.com/opinions/baby-steps-on-ethics-in-va/2015/02/08/8263605e-ae49-11e4-ad71-7b9eba0f87d6_story.html
Hammel, P. (2015, January 21). 'We need a culture change': Senator applauds Ricketts' pick to lead troubled Corrections Department. Retrieved February 16, 2015, from http://www.omaha.com/news/nebraska/we-need-a-culture-change-senator-applauds-ricketts-pick-to/article_f825a90a-a0e3-11e4-bf3f-034520490c16.html
HSBC 'SwissLeaks' leaker urges more support for whistleblowers. (2015, February 9). Retrieved February 16, 2015, from http://www.straitstimes.com/news/business/banking/story/hsbc-swissleaks-leaker-urges-more-support-whistleblowers-20150210
Medland, D. (2015, February 10). 'Corporate Governance Is The Very Essence Of A Business': Stephen Green. Retrieved February 16, 2015, from http://www.forbes.com/sites/dinamedland/2015/02/10/corporate-governance-is-the-very-essence-of-a-business-stephen-green/
Schelzig, E. (2014, November 14). German labor chief: VW must halt anti-union group. Retrieved February 16, 2015, from http://www.freep.com/story/money/cars/2014/11/14/volkswagen-union/19040207/
Wheelen, Thomas L. and David J. Hunger. Concepts in Strategic Management and Business Policy: Globalization, Innovation, and Sustainability-14th ed. Upper Saddle River: Pearson Education, 2010-2012.
Unit A:
Chapters 2 & 3
Due February 18, 2015
Philip Scherrer
Z23216164
Global Strategy and Policy
Monday & Wednesday 8am-9:20am
MAN 4720-004
Professor Harry Schwartz
Major: Business Management
Executive Summary…………………………………………………………..3
Abstracts………………………………………………………………………4-6
Concepts………………………………………………………………………7-8
Analysis……………………………………………………………………….9-12
Conclusion…………………………………………………………………….13
Appendices/Works cited……………………………………………………..14
**(Articles are attached at the end of the paper)**
Executive Summary
The purpose of this applied concept paper is to link some keys terms from our required course text with relevant current events in the business world. This document will better enable me to understand …show more content…
the company culture and correlate business terms to everyday life. The concepts detailed in this research paper are taken directly from the key terms bank at the end of chapters 2 & 3. The keywords come from the Concepts in Strategic Management and Business Policy: Globalization, Innovation, and Sustainability textbook written by Thomas Wheelen, David Hunger, Alan Hoffman, and Charles Bamford. The key terms chosen for this paper are codetermination, corporate governance, transformational leader, ethics, social responsibility, and whistle-blowers. Chapter 2 & 3 highlights some important business ideals and practices.
For example;
The role of corporate governance and how it coincides with the board of directors and top management in the case of UK's HSBC secret scandal.
The role of social responsibility given to strategic decision makers, like JP Morgan's Tim Keefe, in the efforts of hiring hundreds of thousands of displaced veterans.
The role of ethical decision making in the Virginia House and Senate, who are struggling to come to terms with what amount of gifts received are still within moral bounds.
This paper was instrumental in me being able to identify the strategies, missions, and leader characteristics that lead to socially responsible, ethical, and corporately governed businesses.
1.) ‘We need a culture change’: Senator applauds Ricketts’ pick to lead troubled Corrections Department, Paul Hammel-World Herald Bureau, January 21, 2015 (Hammel).
This article focuses on the state corrections facility of Nebraska that has previously been run poorly and released unstable inmates, one of which killed four people. The corrections department for the Nebraska state prison should be on the way up, due to a new corrections director from Washington State. Governor Pete Ricketts appointed Scott Frakes, who has been head of Washington Corrections for 32 years, to reform Nebraska's state prison. He will oversee 5221 inmates in 10 state prisons that, in total, are 2000 inmates above capacity. The prison needs a more efficient rehabilitation program to correct 30% of all prisoners for facilitation of public safety once prisoners are released. Governor Ricketts believes that Frakes can lead the needed culture change.
2.) ‘Corporate Governance is the Very Essence of a business’: Stephen Green, Dina Medland, February 10, 2015 (Medland)
In this article, Medland explains that the UK's corporate governance policy is to "comply or explain". However HSBC has had a problem with this plan especially since after 8-10 years of secrets and noncompliance, it gets incredibly hard to explain. With the secretive operations of CEO Stephen Green, HSBC Swiss bank has successfully hidden 30,000 undeclared accounts and aided criminal businessmen beat the tax system by storing 120 billion dollars in unreported income between 2005 and 2007. Thanks to Herve Falciani, light has been cast on the corrupt business doings of HSBC. In 2010, Stephen Green stepped down from the chairman to become a trade minister in the House of the Lords in the new UK government led by David Cameron (Medland). However, even with Stuart Gulliver as the new CEO, the HSBC has taken no responsibility. Her Majesty's Revenue and Customs, the UK's version of IRS, has taken no action with the 6000 names handed over. The scandal will just continue under current circumstances and present management.
3.) German Labor Chief: VW Must Halt Anti-Union Group, Erik Schelzig, Associated Press, November 14, 2014 (Schelzig).
In Nashville, Tennessee, Volkswagon has been working side by side with anti-labor groups. The President of IG Metall and spokesperson of the German union, Detlef Wetzel, has called out the Chattanooga plant to show a majority of United Auto Worker presence. According to German law, workers hold 50 percent of the seats on the board but the U.S Volkswagon plant has no formal employee representation. Instead, the U.S law says it must work with an independent union (American Council of Employees) to create a German-style council. The American Council of Employees defeated the UAW, and they filed a complaint with the National Labor Relations Board. The UAW was then forced to halt the claim to finish the new SUV in exchange for the promise of recognition as the bargaining partner in Tennessee after the completion of the SUV.
4.) 100,000 Jobs Mission Hires Over 200,000 Veterans. Business Wire, February 9, 2015 (Business Wire)
JP Morgan Chase has led the alliance of 11 initial private corporations on the 100,000 Jobs Mission to hire 100,000 displaced veterans by 2020. 184 companies now make up the coalition that started in 2011 and by December 31, 2014 they have collectively hired 217,344 veterans and spouses. Among the 184 companies are JP Morgan, Chipotle, Amtrak, and Timken. They believe that veterans contribute technical skills, a high level of reliability, and unparalleled leadership to an organization so they have pledged to hire 300,000 veterans.
5.) Baby Steps on ethics in Virginia, Editorial Board, February 8, 2015 (Editorial Board)
This review of Virginia lawmakers puts them in very critical light to boost their reforms on limits to gifts. This limit was in response to the governor, Robert F. Mcdonnell, being convicted for accepting gifts from a dietary supplement company in exchange for backing and support. Last year the cap was limited to 250.00 of tangible gifts that opened a loophole for no limit on trips or services. Lawmakers in Virginia are not happy, to say the least. Now they are looking at an even tighter constraint of only $100.00 on ALL gifts that will also close the loophole. They are also talking about an outside ethics commission that would hold investigatory and subpoena powers. Virginia is ranked 4th for having the worst standards out of all 50 states, and they currently have no limits on campaign contributions. 6.) HSBC ‘SwissLeaks’ leaker urges more support for whistleblowers, AFP, February 9, 2015 (AFP)
Herve Falciani, a former IT employee of HSBC, stole the cache of client files and then turned them over to French police. The data led to the discovery of 119 billion dollars in unreported income from wealthy tax evaders in over 200 countries. Falciani calls for more protection and financial compensation for whistle-blowers so that more may step forward.
1.) Transformational Leader: This type of leader wields great respect. He or she provides a company with a vision for change in the right direction by articulating the vision to each level of the organization. They serve as a role model for the company to emulate, and communicate high standards to employees and leads by example.
2.) Corporate Governance: This practice determines the direction and performance of the company by creating a system of checks and balances between the board of directors, top management, and shareholders. They each play a role in making the right decisions for the direction of the company in the best interests of its shareholders and stakeholders.
3.) Codetermination: This means giving employees seats on the Board of Directors to make sure that company policies are also in the best interest of its employees. Operating under these conditions, employees can expect optimal working conditions, wages, benefits, status, and workers’ rights.
4.) Social Responsibility: This philosophy promotes taking responsibility for the society in which a company operates and adding shareholder value are its first priorities over making a profit. The primary function of social responsibility is providing products and services that give value and satisfy the needs of the society in which they operate. It extends to the environment sustainability efforts to reduce pollution, following the laws, enhancing the culture of corporations, helping the poor in rough economic times, hiring veterans or people with disabilities, and much more.
5.) Ethics: Consensually accepted standards of behavior for an occupation, trade, or a profession.
6.) Whistle-blowers: These are employees who report unethical and illegal acts of a corporation. They are protected under the Sarbanes-Oxley Act.
Transformational Leader
"We need a culture change here.
He's been part of a positive culture in another state. I believe we got the right guy," says State Sen. Bob Krist of Omaha (Hammel). Scott Frakes is well known for his transformational leadership style in the Washington State prison system. He transformed 2,800 state employees, in six prisons, which were responsible for correcting 8000 inmates. His progressive policies in reform led to a decrease of 35% in use of solitary confinement that he believes can make matters worse for mentally ill prisoners. He was also responsible for overseeing the addition of a 2000 bed prison in Washington to combat overcrowding. Frakes is a transformational leader because he created a movement of change with an articulated vision for the movement and actively served as a role model. His track record has given him the ability to command respect because he has shown that he can successfully formulate and implement effective strategies. Frakes will be transforming ten state prisons in Nebraska by reducing overcrowding, use of solitary confinement, and ensuring heightened community supervision once inmates are released to protect the public. Frakes goal as a transformational leader will be to treat and restore 30% of the 5221 mentally ill inmates to reduce crowding but not until they are safe for the public. Nebraska is also in need of a transformational leader to re-rail the entire department because the former leader, Mike Kenney, prematurely released …show more content…
hundreds of prisoners that put the public at risk. One inmate even killed four people after he was released. Frakes will train employees by communicating high-performance standards, and he will empower them to meet those standards by delegating certain tasks that show confidence in his employees.
Corporate Governance In this example, HSBC's corporate governance has failed shareholders and now, to restore faith; they are looking for HSBC to take accountability for their actions by explaining.
Top managers of the corporation have followed the corrupt corporate culture of its inside board of directors to line their own pockets instead of looking out for the best interests of its shareholders. HSBC's corporate governance system is still corrupt because of the corporate culture so adding new members to the board is likely to be unsuccessful. HSBC needs to have a complete reconstruction of management as well as a new board of directors to successfully become compliant and regain shareholder trust. The old corporate governance system was one of widespread collusion with secret names for clients and total disrespect for the law by knowingly committing illegal actions. There is no corporate governance in HSBC or in HMRC, a tax agency that was in cahoots with keeping information secret from law enforcement agencies. The inside directors have kept secrets from outside directors, so they lacked the knowledge and involvement to give guidance to and monitor top management. Then to make matters worse, administrators and members of top management left without showing accountability for their actions. The board of directors is supposed to guide decisions in a responsible way that promotes corporate governance for the long-term success of a
company.
Codetermination The U.S anti-labor union acts in the interest of the company instead of its workers, that goes against Germany's policy of codetermination. The U.S has no such policy of having workers influence management. Wetzel says, "It is our objective to guarantee also under the politically difficult circumstances in the United States that labor union rights are respected, and codetermination in the plant is possible." Codetermination means including workers of the corporation on its board. These workers will bargain for quality working conditions, economic assistance, insurance, rights, and status. German success is attributed to codetermination because employees with a greater voice in the workplace mean higher productivity and lower occurrence of strikes. Germany's codetermination policy is a two-tier system that is comprised of board of managers to manage activities that are chosen by the supervisory board. The supervisory board decides on company policy and strategies, who are voted on by employees and shareholders. So far, the U.S has not recognized the UAW as the chief bargaining unit for the Volkswagon plant in Tennessee. However, the recent policy should give recognition after the new SUV is completed but guidelines lacking detail could stall commitment even further.
Social Responsibility
JP Morgan Chase has been a leader in corporate social responsibility or CSR. They have shown dedication to helping our veterans who put their lives on the line for all of us. Acting responsibly in this case means that companies have responded by giving veterans their lives back since so much of their lives at home have been lost. Getting our veterans back on their feet by providing them and their families with jobs is the epitome of acting sustainably and socially responsible. This generous act was discretionary social responsibility by Chase because it was not required, and many people do not expect actions like these. Finding jobs for displaced veterans has put their skills to good use, reduced unemployment levels, and increased stakeholders trust and commitment in these companies. Such companies have also increased the bottom-line while reviving the social involvement of veterans, and eased the fear of a return to nothing for prospective military recruits. Social Responsibility leaders must form a positive relationship with the society at large in which they hold operations.
Ethics
Do the Virginia lawmakers have an indigent ethical standard or perhaps a long jaded past of improper guidance from a few, leading to a feeling of self-entitlement for all? The ones that have been in the system the longest are creating a sense of entitlement for the entire culture because they want to continue lining their pockets. They failed the ethical standards report and are in danger of public ridicule and distrust. Ethics is about behaving acceptably and from this report you can see that they are gaming the system with no accountability. Even the campaign contributions are being spent on food, groceries, and fuel expenses. Officials are accepting gifts like lavish hunting trips in exchange for giving private ventures their support. Where did the ethics go there? The bottom line here is that government officials cannot govern themselves ethically to do the right things so they need an entity that will enforce the laws and code of conduct. Gifts in exchange for influence is unethical because it creates an uneven playing field for those who expect fair dealings
Whistle-blowers
Herve Falciani is a whistle-blower protected under the Sarbanes-Oxley Act. Under this Act, it is illegal to retaliate against anyone who reports unethical or illegal behavior. However, Switzerland has placed Falciani on the wanted list for stealing data. Are whistle-blowers actually protected? According to Falciani, whistle-blowers need more legal, professional, and reputational support. Fewer people put themselves in Falciani's shoes because they fear retaliation. Although financial compensation exists with entities like the U.S. False Claims Act, more compensation would lead to more of an incentive for whistle-blowers. Further compensation would also serve as a deterrent for unlawful activity because firms will be paranoid about the secrecy of their employees. Corporations should develop and enforce a code of conduct to set the standards for an ethical culture, and this will help eliminate the temptations to act unethically.
This project was particularly helpful to me in understanding the fundamentals of ethics, social responsibility, codetermination, corporate governance, and what it takes to be a transformational leader. I have been able to see the connections between what we learn in class and what is going on in the world around us by connecting the concepts found in Concepts in Strategic Management and Business Policy. This assignment has also caught me up to date with current events in the business world. Keeping up with current events like "100,000 Jobs Mission Hires Over 200,000 Veterans" could even help socially responsible investors, like myself, choose the right companies to invest. Sustainability will be leading the way for many decisions leading to investment ventures in the future. A company who takes care of society and the environment usually points to a company who will look out for the best interests of its shareholders as well. Each article included in my paper had a profound effect on shaping my business views, and they will be incorporated into my strategic decisions in the future. Even though some of them were based on how not to act, I think they served their purpose as behavior modifiers.
100,000 Jobs Mission Hires Over 200,000 Veterans. (2015, February 9). Retrieved February 16, 2015, from http://www.businesswire.com/news/home/20150209005039/en/100000-Jobs-Mission-Hires-200000-Veterans#.VOI-o010w3s
Baby steps on ethics in Va. (2015, February 8). Retrieved February 16, 2015, from http://www.washingtonpost.com/opinions/baby-steps-on-ethics-in-va/2015/02/08/8263605e-ae49-11e4-ad71-7b9eba0f87d6_story.html
Hammel, P. (2015, January 21). 'We need a culture change': Senator applauds Ricketts' pick to lead troubled Corrections Department. Retrieved February 16, 2015, from http://www.omaha.com/news/nebraska/we-need-a-culture-change-senator-applauds-ricketts-pick-to/article_f825a90a-a0e3-11e4-bf3f-034520490c16.html
HSBC 'SwissLeaks' leaker urges more support for whistleblowers. (2015, February 9). Retrieved February 16, 2015, from http://www.straitstimes.com/news/business/banking/story/hsbc-swissleaks-leaker-urges-more-support-whistleblowers-20150210
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