Essential Role of Leaders: Crafting Strategies, Policies & Ethical Frameworks - Essay Sample

Introduction

One of the essential roles of a leader entails crafting the best and most strategies policies and ethical frameworks within an organization. Policies and programs define an organization's mission and vision statement, goals, and key objectives. Odeneye et al. (2018) argued that leaders have the primary role in aligning all these with an organization's culture, practices, and business directions. Ethical policies remain critical to an organization's operations, work engagements, mission, vision, and day to day objectives (Javed et al., 2018). Through the programs, policies, and decisions, leaders craft an organization's corporate social responsibility, a critical societal practice that promotes charity works, activism, and philanthropy by supporting and engaging in morally oriented practices. The paper will analyze and audit Paradigm Toys, a publicly held company manufacturing and retailing children's toys. The audit will help identify the need for an ethics program training within the company.

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Purpose of Corporate Social Responsibility in an Organization

According to Jizi et al. (2014) corporate social responsibility refers to a business practice that enables an organization to align its operations with social work, the public, and stakeholders. Also referred to as corporate citizenship, corporate social responsibility allows a company operates in ways that improve and develops the environment and society by contributing positively (Riivari & Lamsa, 2019). Such practices include promoting education programs, supporting environmental conservation practices, and donating funds to social initiatives that enhance community well-being. Jizi et al. (2014) added that CRS helps an organization or company improves its public image, increase its brand recognition and awareness, and increased customer engagement. Other critical significance of CRS includes increased employee engagement, cost-saving, and more benefits to the employees (Odeneye et al., 2018). Paradigm Toys can thus derive several benefits that can help improve and promote its business prospects within the market.

Primary and Secondary Stakeholders influencing Paradigm Toys

Stakeholders of a given business entity entail those persons who care and have an interest in the business' conduct and general performance (Jizi et al., 2014). Primary stakeholders refer to those persons having direct engagement and interest in a business entity. For example, Paradigms Toy's two primary stakeholders include investors and employees. On the other hand, secondary stakeholders refer to those persons having an indirect interest in a business entity. Paradigm Toy's secondary stakeholders include the community/residents and trade unions. These two groups have a significant influence on Paradigm Toy's operations. For example, the trade union may bring forth recommendations for Paradigm Toys to employ more of the locals as compared to non-locals (Jizi et al., 2014). Residents may also take a vocal stand on the company's CSR operations by inhibiting or supporting the company's initiatives.

How Paradigm Toys Can Meet their CSR

CSR has strategically grown as strategic value creation for business entities. For success, stakeholder involvement remains an essential aspect for all organizations and businesses. Paradigm Toys need to take the listening and promotion approaches in which they undertake a mass survey and recurrent meetings with stakeholders (Riivari & Lamsa, 2019). All through the listening approach, it needs to seek publicity with the stakeholders by way of partnering with all the stakeholders involved. Partnering with the stakeholders enables the stakeholders to understand that the company recognizes their contribution and significance. In many cases, companies partnering with its stakeholders get the best goodwill, collaboration, and support all through their CSR mission (Jizi et al., 2014). Through promotion, Paradigm Toys need to undertake a campaign exercise in which it provides feedback to all its primary and secondary stakeholders on their CSR activities and engagements. Through these approaches, Paradigm Toys need to define its CSR goals, involve its primary and secondary stakeholders, and create a scorecard for its activities (Jizi et al., 2014). The listening and promotion approach enables the company to bring on board the stakeholders, thus creating a platform for better understanding.

A Reflection on the Importance of Ethical Leadership

According to Javed et al. (2018) leadership refers to the practical skill and act of leading an organization or people. It entails guiding, management, having control, or showing direction. The natural facet of leadership plays a critical role in building organizational culture, promoting employee values, and enabling ethical conduct within the organization. There are various types of leadership, including strategic leadership, transactional leadership, ethical leadership, autocratic leadership, and democratic leadership (Javed et al., 2018). Ethical leadership entails respect to the rights of others, dignity, values, and ethical beliefs. Ethics serves as a pointer to morality and helping others justify their behavior and morals.

Ethical leadership helps in fostering goodwill, respect, and fundamental values in an organization (Odeneye et al., 2018). It also serves as a motivator and guide to putting others' interests and needs ahead of one's own. Similarly, ethical leadership is critical in stimulating, inspiring, and establishing a visionary attribute among the employees and within the organizational culture (Javed et al., 2018). Besides coaching employees, ethical leaders develop a vital framework of professional and personal competence, an essential aspect of stimulating trust, vision, and integrity.

Importance of Developing an Ethical Culture in an Organization

An ethical culture helps in guiding decision making, establishes frameworks of discussions, handling difficult situations, and sustaining trust within an organization (Javed et al., 2018). Ethical culture also creates an environment that promotes moral behavior, individual conduct based on sound attributes such as respect, humility, patience, friendliness, liberality, and courage. Through these, a business such as Paradigm Toys provides an environment of understanding and virtuous behavior. Ethical culture also helps in improving employees' morale, fosters high-level attainment, and enriching organizational commitment. For example, ethical culture within Paradigm Toys can play a significant role in assisting employees in taking responsibility for their conduct (Javed et al., 2018). Lastly, ethical culture also provides the right frameworks to fostering a unique holistic organizational culture.

Role of Paradigm Toys' Leadership in Fostering an Ethical Culture

According to Javed et al. (2018) a leader has the primary purpose of serving as an example and role model to others to establish the desired ethical culture. Leaders have the function of outlining core principles and rules for employees to adhere to and practice. Firstly, the leader must develop appropriate organizational ethics aligned to the business procedures and policies (Odeneye et al., 2018). Through these, employees can practice and emulate the leader's conduct and expected behavior. The leaders need to create clear boundaries for ethical business and risks within which the employees make the appropriate decisions. The leader must also apply to the organization's rules, policies, and procedures (Javed et al., 2018). During hiring or promotion, leaders need to focus on character traits. At the same time, a leader must establish transparency, trust, and accountability. Regular examination and determination of the organizations' direction also play a critical role in fostering an ethical culture (Sroka & Szanto, 2018). A leader undertakes occasional investigations such as during appraisal or assessment.

Purpose of an Ethics AuditAn ethics audit denotes to an assessment between the guidance for worker conduct and the real employee conduct as provides in the company procedures and policies (Odeneye et al., 2018). The exercise entails investigating an employee's behavior and how it conforms to the established ethical principles (Trevino & Nelson, 2017). The primary purpose of ethics auditing is to identify misbehaviors before they become problematic. It is also a way in which an employer provides an employee with the practical guidelines to expected behaviors (Javed et al., 2018). Other primary critical purposes of an ethical audit include monitoring the implementation of the quality assurance strategy, designing a practical methodology for modifying an organization's procedures and practices (Sroka & Szanto, 2018). The exercise can further help in identifying pertinent ethical concerns with the organization's setting.

Value of Ethics Audit in Paradigm Toys

An ethics audit can help Paradigm Toys identify and resolve its ethical challenges with a clear focus on building and improving its ethical culture. The exercise can also help Paradigm Toys scan its environment and pinpoint the most provocative issues and actions (Jizi et al., 2014). Through this, Paradigm Toys can get a fitting opportunity to engage in effective decision making and strategy planning to streamline the company's practices and policies.

Ethical Framework

An ethical framework entails a set of values and principles, providing a basis for ethical and safe practices within a working environment (Javed et al., 2018). As a good structure, ethical framework guides in making the right choice while maintaining an organization's ethical culture. The ethical framework remains a critical tool in ethical dilemmas, especially in situations where ethical culture is required and upheld.

Identification of an Ethical Dilemma in a Business Meeting

According to Odeneye et al. (2018) ethical dilemmas, also known as moral dilemmas, refer to situations in which an organization stands at a position of choosing between two alternatives, both of which can solve the standing impasse in a fashionable moral way. In business, salespersons encounter various situations of ethical paradox, and one must always remain careful about the temptations that arise (Trevino & Nelson, 2017). An example includes utilizing a company's inside information for one's profit, for example, insider trading. Insider trading entails an illegal business engagement in which an employee or investor uses confidential information for one's advantage on the stock exchange (Jizi et al., 2014). In such a situation, the individual benefits from the sensitive information to make a profit, for example, a CEO of a company buys 2,000 shares of stock with the inside confidential details of a possible increase in the share price.

An Evaluation of Potential Solutions to the Identified Ethical Dilemma

The first and best solution to the above ethical problem entails developing strict ethical practices and protocols for all employees. Secondly, the company must also offer ethical training to all employees regarding ethical issues (Riivari & Lamsa, 2019). Training will help employees identify and develop the appropriate moral intuitions that form a critical aspect of their day to day actions and choices.

Recommended Ethical Dilemma in the Above Situation

Ethical training would form the best solution and enable employees to build a robust ethical perspective on a long term basis. It helps apply sound judgment, dialogue, and reason while addressing workplace issues (Javed et al., 2018). Training also enables employees and leaders to grow in c...