New Business Characteristics Characteristic20 th Century21 st Century StructurePyramid Top-Down Web Bottom-Up Strengths Stability Control Adaptability Learning FocusInternal Efficiency Market Value ResourcesPhysicalIntellectual Workers Employees Cost Free Agents Asset ChangeIncrementalRevolutionary

Managers and Leaders Management Custodial Managers Leadership Change Agents Action AgendaPlanning, ControllingVisioning, Motivating ExecutionDirect & Control Problem Solving Motivate & Inspire Facilitating OutcomesStability, EfficiencyTransformation, Growth ConcernDoing things rightDoing the right things RelationshipsTop-down, Authoritative Bottom-Up, Delegating PerspectiveShort-term GoalsLong-term Vision

Leadership Leaders are ‘change agents who must ‘Unfreeze’ the organization Articulate a vision for what the organization can become Create a process for achieving the vision Leader’s success is measured by how effectively they create and implement a strategic vision and mission

Leadership Functions To create change leaders must:  Determine a Direction  Design the Organization  Nurture a Culture of Learning, Excellence, and Ethical Behavior  Motivate and empower employees Leaders use power to overcome organizational inertia

Ethical Behavior Individual Beliefs Organizational Expectations Cultural Norms Situational Factors

Approaches to Business Ethics Organizational/Legal View Businesses are legal entities and have no social or moral purpose Purpose of business is to maximize owner's wealth within the limits of the law Compliance-based ethics encourages meeting legal obligations.

Approaches to Business Ethics Social Responsibility (CSR) View Businesses are social entities and have social and ethical impact on society Purpose of business is to satisfy the needs of multiple stakeholders including the financial interests of stockholders Integrity-based ethics encourages morally responsible behavior

How do Businesses Become Ethical?  Codes of Conduct  Role Models  Policies and Procedures  Reward Systems  Organizational Culture  Selection and Training