Base on the review and analysis performed for Paradigm Toys ethics audit, I highly recommend that the
board of directors make use of a combination of legitimate and reward power when establishing ethical
climate in the industry and for the purpose of promoting an ethical conduct as a culture for their
employees. Legitimate power is a power derived from a leader’s formal position of authority that the
leaders use in giving instructions to their followers. For Paradigm Toys to have an effective culture, the
company will have to capitalize on its legitimate power by supporting their departmental executives,
directors, and managers. To achieve the highest ethical conduct from an employee or team that will
enable the company to have a legitimate power that will assist in creating strong culture of ethics in the
whole organization, Manager’s will have to exhibit ethical conduct themselves both formally and
informally. Reward power is the power that is given to leadership for being in control of rewards that
will be issued to their employees or for leaders to determine who is eligible for a reward. The reward
power should be used as a supplement to the legitimate power; Paradigm Toys should create a reward
program for employees when they display good ethical conduct and when they consider how their
actions and decisions can affect the company and other employees.
To ensure that the legitimate and reward power operate at its maximum, Paradigm Toys will have
a well-documented and strict policies and procedure in place for individuals with unethical behavior and
create a reward program to discipline employee with unethical behavior and reward employees with
ethical behavior.
Stakeholders
The stakeholders that influence Paradigm Toys are the primary and secondary stakeholders. The
primary stakeholders are the groups that are directly affected by the company and can also directly
impact the company in a positive or negative way. The primary stakeholder may directly impact the
existence of the company or the relevance of the company. The primary stakeholders are employees
and customers/investors. The secondary stakeholders on the second hand are the groups that are
indirectly affected by the company or the groups that may affect the company. The secondary
stakeholders can also affect the company indirectly in a negative or positive way. The secondary
stakeholders are Government agencies and financial institutions; they can influence the organization in
so many ways. For example, employees going on strike and company losing a license, this can affect the
bottom-line of the organization and also affect operations. Paradigm Toys should anticipate all the
issues that might come from both stakeholders and plan ahead for appropriate steps to resolve future
issues.
Corporate Social Responsibility
There are multiple ways the board of director at Paradigm Toys can meet their corporate
social responsibility to the primary and secondary stakeholders. Some suggestion is for Paradigm
Toys to Go green and to implement philanthropic program.
Go Green: To minimize the environmental footprints, paradigm Toys will go green by using
environmental friendly products and packaging for their toys. Today, most customers are going green
and
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