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Management - Essay Example

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Societal Benefits of Good Business Leadership Introduction Without a doubt, individuals grow and accomplish their goals through living in a society and dealing with other people. The social aspect of individuals generates the need for organizations to become socially responsible or to promote the wellbeing of the entire society…
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Download file to see previous pages Business organizations, in particular, contribute to the wellbeing of the entire society through activities aimed at promoting and preserving a self-sufficient and independent society. However, businesses will definitely fail to benefit the society without good leadership. As argued by Peter Drucker, good leadership and social responsibility are mutually dependent (Godfrey & Grasso, 2000). This essay demonstrates that good leadership reassures that businesses are being managed in ways that will benefit the whole of society. Peter Drucker states that the primary obligation of the organization is constantly to its own objective. If an attempt to generate a beneficial outcome led to the ruin of the organization trying to actualize it, it was not socially responsible, despite righteous intents. Businesses’ primary social responsibility is to generate earnings enough to answer for possible operational expenses (Maak & Pless, 2006). If the organization was not able to realize its own objectives due to mismanagement or mishandling of physical and human resources so as to accomplish social responsibility, it would harm society by failing to provide employment, products/services, and economic inputs. This argument became quite controversial among management scholars. Supporters of different movements often force business organizations to contribute to the alleviation of social problems that are completely beyond the organizations’ forte or capacity to fulfill (Maak & Pless, 2006). These pressures are exerted even if the measures demanded by these advocates, if carried out, could harm the organization, and in a certain extent could also harm society. Refusing or not being able to carry out the measures demanded these organizations are at times called ‘unethical’ (Adler & Gundersen, 2008). Hence, Drucker recommends good leadership. The objective to benefit the society obliges leaders to reflect, and to have the audacity and initiate steps where needed. A deeper analysis of business organizations would show that these entities are more than an arbitrary collection of people, although with a shared objective. Organizations are structured; people in an organization take on or are delegated different positions, functions, and responsibilities in order to realize this objective successfully (Mueller et al., 2009). Organizational structures suggest that leaders and followers exist. The leaders are ought to wield authority, provide guidelines, lay out rules, and carry out roles that are needed to realize the objectives of the organization. In thriving organizations, good leadership is beyond mere routine operational tasks like creating the organizational culture, leading employees, and allocating resources (Flynn, 2008). Good leadership is all about empowering and motivating followers to make their best efforts for the actualization of the vision that the leader has developed to realize the objectives of the organization. Among these objectives is to benefit the entire society. And the fulfillment of these objectives is largely possible through good leadership. Good Leadership is Socially Responsible/Ethical Leadership As stated by Peter Drucker, “What is most important is that management realizes that it must consider the impact of every business policy and business action upon society. It has to consider whether the action is likely to promote the public ...Download file to see next pagesRead More
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