Running head: Ethical Leadership – Paradigm Toys1
C206 Task 2 Ethical Leadership – Paradigm Toys
- Purpose of CSR
Corporate social responsibility is important because corporations hold a lot of power within society. However, corporations would not exist if it weren’t for their stakeholders and customers.If corporations do not consider these entities, along with the government and other special interest groups, when they make their decisions they could easily lose their business. They have a social responsibility to these entities and a failure to uphold that responsibility can result in mistrust and can even have legal implications.A1. Primary and Secondary Stakeholders Two primary stakeholders that influence Paradigm Toys would be their employees and their customers.Two secondary stakeholders that influence Paradigm Toys would be environmental special interest groups and the community where the products are manufactured.A2. Responsibility of Stakeholders The board of directors at Paradigm Toys should meet their social responsibility with their employees by offering competitive wages and benefits. It’s also important that they provide a safe and comfortable work environment for them. To meet the social responsibility of their customers they need to produce toys that are as advertised, safe, durable, and affordable. They 1 / 2
Ethical Leadership – Paradigm Toys2 also need to be willing to back their products and offer a reasonable solution to customer complaints.Secondary stakeholders, such as environmental special interest groups, need to be treated with respect and transparency. Paradigm Toys has a social responsibility to manufacture their products with environmentally friendly materials and packaging that won’t harm the environment. They also have a social responsibility to the community in which they manufacture their products. As a large corporation, Paradigm Toys should contribute, financially and socially, to the community. Engaging and volunteering in community events would be a great way to increase social responsibility.B1. Importance of Ethical Culture It’s important for Paradigm Toys to foster an ethical culture. An ethical culture leads to customer trust, employee engagement, and financial stability. If Paradigm Toys conducts itself with honesty and integrity the customers will trust the company and chose to purchase toys from the company. If Paradigm Toys treats their employees fair and just then they’ll enjoy working for the company and will be engaged in their employment. If the consumers trust the company and the employees are in engaged in their jobs the financial stability should follow.B1a. Fostering Ethical Culture To foster an ethical culture, leaders at Paradigm Toys needs to lead by example and holding people accountable. If leaders engage in ethical conduct and show their employees that being ethically is important, it's highly likely that the employees will follow suit. Leading by example is one of the best ways to promote an ethical culture.
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