Download 301LON U6K1

Stakeholder Power and
Ethics
International Business
Strategy
LON301BUS
Unit: 6 Knowledgecast:1
Module Learning Outcomes
• Demonstrate a sound appreciation of current strategic
management concepts
• Communicate an in-depth understanding of the
complexity of the environment and its applications on
decision-making process
• Assess current developments in the organisational
environment and alternative responses related to
strategy
Strategic Position - Stakeholder Power
(Expectations & Purpose)
• Corporate Governance
 “Corporate governance is concerned with the structures and
systems of control by which managers are held accountable to
those who have a legitimate stake in an organisation.” (Johnson
and Scholes 2008:133)
Strategic Position - Stakeholder Power
(Expectations & Purpose)
• Corporate Governance is influenced by:





Role of the governing bodies
Ownership structures
Operation of governing bodies
Influence on strategy
Rights of external stakeholders
Ethical Stance
•
•
•
•
Short term shareholder interests
Longer-term shareholder interests
Multiple Stakeholder obligations
Shaper of society
• Corporate Social Responsibility
Stakeholder Mapping
Level of Interest
Low
Power
High
Low
A – Minimal
Effort
C – Keep
satisfied
High
B – Keep
informed
D – Key
players
Knowledgecast Summary
• Demonstrate a sound appreciation of current strategic
management concepts
 We have explored stakeholder power and ethics
• Communicate an in-depth understanding of the complexity of the
environment and its applications on decision-making process
 How do businesses develop a consistent ethical stance?
• Assess current developments in the organisational environment
and alternative responses related to strategy
 Corporate Social Responsibility has grown in influence over the last
decade
Seminar
Virtual Tour
In this seminar we are going to take a virtual tour together of one of the
world’s largest fast moving consumer goods multi-nationals, Unilever
plc (www.unilever.com).
In taking this tour we are seeking to identify the strategic position of
Unilever and how its stakeholders influence its strategy. During the
tour we are seeking to answer three key questions;
1. Who are Unilever’s key stakeholders and what do they expect from
the business?
2. How do these stakeholders influence the business?
3. What evidence can you find of Unilever’s ethical stance?
Group Activity
Tour Review
Having ‘toured’ Unilever and understood its strategic position and the
influence of its stakeholders; now turn to the case study organisation
you are working on and collaborate with your consultancy group to
research the organisation’s stakeholder power. You may choose to
use the same questions from the seminar…
1. Who are the organisation’s key stakeholders and what do they
expect from the business?
2. How do these stakeholders influence the business?
3. What evidence can you find of the organisation’s ethical stance?