1. New Business Characteristics
20th Century
21st Century
Structure
Pyramid:
Top-Down
Web:
Bottom-Up
Strengths
Stability
Control
Adaptability
Learning
Focus
Internal Efficiency
Market Value
Resources
Physical
Intellectual
Employees
Human Resource -
Cost
Human Capital -
Asset
Constraints
Legal
Social Responsibility

2. Managers and Leaders Management Leadership Custodial Managers
Change Agents
Action Agenda
Rational Process
Planning, Controlling
Top Down
Emergent Process
Motivating, Empowering
Bottom Up
Outcomes
Stability, Efficiency, Incremental Change
Transformation, Growth, Radical Change
Concern
Doing things right
Doing the right things
Relationships
Authoritative
Facilitating
Perspective
Short-term Goals
Long-term Objectives

3. Leadership Strategy is about distinction and change
Leaders are ‘change agents’
Leader’s success is measured by how effectively they create strategic change

4. Leadership Functions To create change leaders must:
Determine a Direction
Unfreeze the organization
Articulate the vision, mission, and values
Define what the organization is going to become
Design the Organization
Create processes to challenge the status quo and overcome organizational inertia
Motivate and empower employees
Establish Controls
Nurture a Culture of Learning, Excellence, and Ethical Behavior

5. Power Leaders use power to overcome organizational inertia :
Systemic barriers to change
Behavioral resistance to change
Political barriers to change
Sources of power
Organizational
Personal

6. Learning Organizations
Successful learning organizations:
create a proactive, creative approach to the unknown,
actively solicit the involvement of employees at all levels
enable all employees to use their intelligence and apply their imagination
inspire and motivate with a compelling purpose

7. Ethical Behavior Individual Beliefs Organizational Expectations
Cultural
Norms
Situational Factors

8. The Ethics Debate
Few Trends could so thoroughly undermine the very foundations of our free society as the acceptance of a [corporate] social responsibility other than to make as much money for the stockholders as possible (within the limits of the law). Milton Friedman
The purpose of business is not to make a profit; it is to make a profit so that the business can do something more or better (for society). Charles Handy

9. 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.

10. Approaches to Business Ethics
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

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