Paradigm Toys: Ethics Audit Paper

Paradigm Toys – Ethics Audit

George Catt

WGU

Power

After conducting the audit and reviewing the culture of Paradigm Toys, I recommend the use of referent power to effectively establish and maintain an ethical climate. Referent power is the ability of a leader to influence a follower because of the follower’s loyalty, respect, and/or desire to gain approval. By using referent power, the leadership team will gain employee buy-in easily as they commit to the cause and base their effort on the leadership team’s approval.

Stakeholders

There are two different groups of stakeholders who are impacted by Paradigm Toys activities. Primary Stakeholders are typically internal stakeholders such as stockholders, customers, and employees, who

Kaplan, 1993):

• The customer's perspective. Managers must know if their organization is satisfying customer needs. They must determine the answer to the question, “How do customers see us?” Any good company must know if they are meeting customer needs in order to retain and even grow market share.

• The internal business perspective. Managers need to focus on those critical internal operations that enable them to satisfy customer needs. They must answer the question, “What must we excel at?” Paradigm is faced with stiff competition from several large companies. Paradigm would do well to concentrate on the areas of greatest impact on customer satisfaction.

• The innovation and learning perspective. An organization's ability to innovate, improve, and learn ties directly to its value as an organization. Managers must answer the question, “Can we continue to improve and create value for our services?” As mentioned above, Paradigm has several big-name competitors. Paradigm will need to make continual improvements to existing products and processes while having a high level of innovation to create new ones. This will help to grow market share and increase shareholder