Group Name: Spangles

Group Members:
Narmeen Farooq Malik(0015)
Sonia Ehsan Sheikh (0007)
Madiha Ghafoor (0009)
Beenish Hafeez (0016)
Maleha Hamid (0008)

Stakeholders, The Mission,

Governance, and Business Ethics.

Stakeholders

Stakeholders are the Individuals or

groups with an interest, claim, or stake
in the company.

Types of Stakeholders:

Stakeholders Impact
Analysis
The
impact analysis helps companies
decide what stakeholders are most
critical to survival.

Mission Statement:

Mission statement of a company is a

key indicator of how an organization
views the claims of its stakeholders.

1. Mission:

The mission describes what it is that

the company does.

2. Vision

The vision of a company lays out some

desired future state , what the
company would like to achieve.

3. Values:

These are the guiding principles that

help to define how the corporation
would behave.

4. Major Goals:

Its purpose is to specify what precision

should be done if the company is to
achieve its mission or vision.

Corporate Governance and

Strategy:

the relationship among stakeholders

that determine and control the
strategic direction and performance of
organizations.

Corporate social
Responsibility:

The goal of CSR is to embrace

responsibility for your business' impact
on the environmental, social and
community issues that affect both your
internal and external stakeholders.

Agency Problem:

Agency Theory:

The agency theory is a supposition that

explains the relationship between
principles and agents in business.
Agency theory is concerned with
resolving problems.

Governance Mechanism:

These are the mechanisms that

principals put in place to align
incentives between principals and
agents and to monitor and control
agents.

1. Board of Directors:

They are the centerpiece of the

corporate governance system. Board
members are directly elected by
stockholders.

2. Stock-Based
Compensation:

establish incentives for agents to

behave in their best interest through
pay for performance systems.

3. Financial Statements and

Auditors:

Publicly trading companies are required

to file their annual reports with the SEC
that are prepared under GAAP.

4. Takeover Constraints:

It is the risk of being acquired by

another company.

QUESTION:

Ethics is one of the most important

factor in todays business. Explain how
a business can be successful by
implementing ethical values in their
activities. And what can be Ethical
issues in the business.

Ethics and Strategy:

Accepted principles of right or wrong

that govern the conduct of a person,
the behavior of members of a
profession, or the actions of an
organization.

Business Ethics:

Business ethics are the accepted

principles of right or wrong governing
the conduct of business people.

Ethical Dilemma:
Situations where there is no agreement
about exactly what the accepted
principles of right and wrong are.

Ethical Issues in business

strategy:

1. Self-Dealing:

occurs when managers found a way to

feather their own nests with corporate
monies.

2. Information Manipulation:

occurs when managers use their

control over corporate data to distort
or hide information in order to enhance
their own financial situation.

3. Anticompetitive
Behavior:

covers a range of actions aimed at

harming actual or potential
competitors.

4. Standard working
conditions:

created when managers under invest

in working conditions or pay employees
below market rates, in order to reduce
their costs of production.

5. Environmental
Degradation:

occurs when a Firm takes actions that

directly or indirectly result in pollution
or other forms of environmental harm.

6. Corruption:

it violates a bundle of rights. E.g: the

right of competitors to a level playing
field when bidding for contracts.

Root of unethical
Behaviour:

A lack of separation between ones

business ethics and personal ethics
Failure to ask relevant questions
Purely economical organizational
culture
Pressure from top managers
Unethical behavior by company leaders

QUESTION:

Business depends upon the

performance of managers. Why it is
important for managers to behave
ethically? Also explain tools for
managers for easily implementing
ethics in operations.

Behaving Ethically:

involves demonstrating respect for key

moral principles that include honesty,
fairness, equality, dignity, diversity and
individual rights.

1. Hiring and Promotion:

Hire employees with good past profile,

promote to avoid employee engaging
in unethical activities.

2. Culture:

Create a culture of organization that

focuses on high ethical values. Give
incentives on ethical behaviors.

3. Ethics Officers:

Hire ethics officers to implement ethics

in the organization.

4. Moral Courage: