Essay On How Great Companies Think Differently

In the corporate setting, capitalism plays an important role in the sense that it helps ensure that the decisions made by leaders, such as the CEOs, take into consideration the company’s or stockholders’ interest in gaining profit (Peñaloza & Barnhart, 2011). This implies that it compels business leaders to make decisions that minimize loses while increasing the profitability of the firm. In most occasions, this is accomplished through the application of the utilitarian and Kantian approach to decision-making. However, it’s important to note that the central implication of public capitalism is that of helping foster corporate decision-making based on the broader effort to promote the public good (Peñaloza & Barnhart, 2011).

The collection of private, commercially oriented organizations, ranging in size from sole proprietorships to large corporations is referred to as

The banks approach starts out that just about every other business in Singapore is dealing with or has an account with OCBC bank. The reason why the bank is so successful is because the bank was built and run on stick business policies and has active talent management and development (Shukla-Pandey, 2012).

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

1. To provide an introduction to the conceptual framework of strategic management using a non-business situation.

"Strategic management is a set of managerial decisions and actions that determine the long-run performance of a corporation" (Wheelen & Hunger, 2006, p.3). The benefits of strategic management helps the firm focus on the objectives and develop the steps involved in obtaining the vision and financial wealth of the organization. An effective strategic management plan should include the following three questions: (1) Where is the organization now? (2) If no changes are

Built with the history of over 200 years, the company has been always there for its clients and communities, be it good or bad times. The company follows certain principles – and they are not necessarily in any order of importance. It believes that it will reach its goal of becoming the best financial services company in the world by adhering to the guiding principles. Below are certain principles that serve as a roadmap on how and why the company make its decisions.

Can business thrive by profit alone? Barry (2000) described Milton Friedman’s short essay, in the 1970’s, as extremely controversial, in which he denied that corporate executives had any moral duty to relax the conditions of profit maximization on behalf of the wider interests of society. This example of the “bottom line” of business has been demonstrated within the past couple of decades by publicly criticized companies, for fraudulent activities, such as, Enron, WorldCom, and HealthSouth along with many others. These company executives were willing to sacrifice the vast majority and greater good of society for profit gains. This mindset left many of loyal investors, consumers and employees without a sound stabilized future. There are also many businesses that produce a high yield on their investments;

(ii) Shareholders invest their money into firms to maximise profits, not to act on “social responsibilities”

Brenda Franklin had been serving Allied Tech for the past 8 years. As any other organisations, Brenda used to be a part of the lunch hour conversations with her colleagues. One day when her colleagues were discussing about corruption and politics, something occurred to her. As a result she prepared a list called “Ethically Dubious Conduct” and pasted it on the common notice board. Her colleagues were taken by surprise. Brenda was now anticipating the next lunch where she was expecting her list to be analysed among her colleagues.

With the goal of “not just to be the best in the world, but to be the best for the world,” Benefit Corporations or B Corporations, want to be the change in the world by using business to combat social and environmental problems (B Lab, 2014. “Why B Corps Matter.”) . Designed for profit companies that want to consider their impact on society in addition to making a profit, B Corporations aim to “redefine success in business” (B Lab, 2014. “Why B Corps Matter.”). Whereas a traditional corporation has a goal to generate as much revenue and profit as possible, Benefit Corporations also work to create general public benefit and thus make it their responsibility to satisfy all stakeholders, not just shareholders. Because of their desire to benefit all their stakeholders, B Corporations work to create higher quality jobs and improve life in communities by becoming an agent for of change in passing legislation and investing capital to make a difference in the world. Besides being accountable to all stakeholders, B Corporations are more transparent than that of traditional corporations as they are required to annually issue a report to the public, assessing their overall financial and environmental performance against a quoted threshold known as the B Impact Assessment. In acting socially responsible as a mission rather than an option for businesses, Benefit Corporations are working to transform revolutionize the way business is conducted.

“ Our mission is to be a Premier Bank in the Asia- Pacific region, committed to providing Quality Products and Excellent Customer Service.”

This paper will have a detailed discussion on the shareholder theory of Milton Friedman and the stakeholder theory of Edward Freeman. Friedman argued that “neo-classical economic theory suggests that the purpose of the organisations is to make profits in their accountability to themselves and their shareholders and that only by doing so can business contribute to wealth for itself and society at large”. On the other hand, the theory of stakeholder suggests that the managers of an organisation do not only have the duty towards the firm’s shareholders; rather towards the individuals and constituencies who contribute to the company’s wealth, capacity and activities. These individuals or constituencies can be the shareholders, employees,

Milton Friedman wrote in his famous 1970’s article in The New York Times Magazine, that “the one and only social responsibility of business, is to increase profits for shareholders.” Milton Friedman's view on business responsibility accentuates the importance of maximizing firm's value. He pointed that the “there is one and only one social responsibility of business –to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engaged in open and free completion without deception or fraud’’ and by taking on the burden of social cost, the business becomes less efficient (Milton Friedman, 1962).

The strategic management is actually defined as the process in which an organization actually formats and also implements the plans which espouse the objectives and goals of that organization (Diana Wicks, 2011). The process of the strategic management is continuous and it changes with the evolution of the organizational goals and objectives.