A. Effective Powers
The Paradigm Toy would be best served by a leader whom utilizes referent power. Referent power entails the leader leading by example. The leader should model his behavior to demonstrate appropriate conduct and decision making. By observing a manager’s behavior, employees will act as they believe their manager would in the same situation. Some may not even be aware that they are modeling the leader’s behavior Trust of employees in management and employee empowerment is key to success when utilizing referent power. Trust and allowing employees to make decisions takes time to develop; therefore, reducing employee turnover rates is imperative to management’s success. (Study.com, 2016).
B. Primary and Secondary Stakeholders
The primary stakeholders are the employees and investors because they depend on the company’s financial well-being for their own. The secondary stakeholders may involve nearby residents who live near a company. They include local workforce boards that rely of the company to employ local workers (Hearst Newspapers, 2016).
B1. Board of Directors and Corporate Social Responsibility
The board of directors have legal and moral obligations to its stakeholders. Two ways businesses can meet corporate social responsibilities are by increasing profit and shared values. Firstly, regardless of emerging business models, most corporations still believe increasing profits exponentially is the most socially thing a company can do. Theoretically, a profitable business creates new employment opportunities, and goods or services. As the company profits increase, the stakeholders earn a greater return on their investment (Hearst Newspapers, 2016).
Secondly, a "shared value" model isn’t about the redistribution of wealth. Shared values include business and society collaborating to increase profits while improving society. By addressing society's needs and challenges a corporation achieves economic success. Ideally, the betterment of...