The Importance Of Corporate Leadership

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Warren Bennis indicated that the total dollar cost to investors and pensioners of Enron exceeded $80 billion. This outlandish cost, for the most part, was due to the company 's lavishly compensated poor leaders. Has this incident?along with other notable ones such as Tyco, WorldCom, etc.?finally changed corporate leadership? Alternatively, is this simply a "temporary scare" to those in charge, and soon corporate leaders will revert to their previous actions and behavior? Please answer this question using analysis from at least two scholarly references as well as a discussion of your personal and/or professional behaviors. Corporate leadership has changed, thanks to organizations such as Enron. Leaders and organizations must be social responsible, in order to succeed in the 21st century business environment. According to Peloza and Shang (2011), corporate social responsibility (CSR) activities create stronger relationships between firms and stakeholders. C.S.R. can improve the image of an organization and its leader. Leaders understand…show more content…
Werner (2009) points out, corporate social responsibility (CSR) initiatives--may be able to positively affect social status, earning potential, access to services, and resources for socially excluded populations. Leaders that are social responsible can influence the organization and the environment around it in a positive way. Organizations such as Enron was proven and perceived as unethical and a negative factor on the economy. The perception of an organization that has a leader, who is corporate social responsible, can help improve a poor economy. Werner points out; CSR is meant to address a problem by addressing any negative value-chain impacts while supporting the business strategy and the needs of the community. CSR can be a strategic tool that is effective in creating a positive image for the
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