Thursday, July 22, 2004
The leadership of a corporation struggles with a variety of stakeholders. Often times the appeasing of certain stakeholder factions can be interpreted as a slight by others stakeholder factions. For example, in saying that customers and shareholders are our most important constituents, employees and the community may feel slighted. This slight could result in low morale and reduced productivity. A corporation can assuage this by announcing plans to grow the company and increase productivity, however when this announcement is made after significant cost cutting and efficiency moves, the plan is more difficult to carry out. Bold claims and initiatives must be viewed through the lenses of purpose, power, people and principle as described by Paine, lest they be interpreted as the latest corporate hype.