International Business Strategy

LON301BUS

Stakeholder Power and Ethics

Unit: 6 Knowledgecast:1

• 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

Module Learning Outcomes

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

Power

Low High

Low A – Minimal Effort

B – Keep informed

High C – Keep satisfied

D – Key players

• 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

Knowledgecast Summary

Virtual TourIn this seminar we are going to take a virtual tour together of one of theworld’s largest fast moving consumer goods multi-nationals, Unileverplc (www.unilever.com).

In taking this tour we are seeking to identify the strategic position ofUnilever and how its stakeholders influence its strategy. During thetour 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?

Seminar

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?

Group Activity