How Great Companies Think Differently
Strategic Management
How Great Companies Think Differently
Making money has long been the ultimate aim of a business. This capitalism vision has influenced the majority of corporations limit their goals in generating the highest profits and returns to owners, regardless the health and safety of employees, the environment, and general public. An institutional logic, therefore, has been raised by professor of Harvard Business School－Kanter. Unlike traditional practices, this logic addressed a successful company is a vehicle for enhancing societal welfares, rather than only a machine to make money. Not only can most well-established companies distribute sound returns to shareholders, but also build long-lasting institutions. In high-performing business, both institutional logic and economic logic are critical to operations and strategic decision making. There are six fields mentioned in the passage, which are a common collaborative purpose, a enduring focus, emotional engagement, partnering with society, innovation, and self- organization－changing corporate and leadership behavior at all, as well as constructing the base of a solid and stable competitive advantage.
Effective governance that ties the decisions of managers up with the interests of shareholders can help develop a competitive advantage. (Ireland, P.250) The article, however, suggests a different way of governing the corporate, which I think is more comprehensive to develop a sustained institution. In order to ensure continuous returns, a company need to empower the employees, engage emotion, lead based on esteem, and contribute to related community.
Corporate social responsibility, actually, should be internalized as the governance mechanism. As far as the business can offer, it is aimed at satisfying the needs of customers and continuous value creation. A company, therefore, should create an identity, which can reflect the standing values, for the people to recognize what it is and how it will
How Great Companies Think Differently
Making money has long been the ultimate aim of a business. This capitalism vision has influenced the majority of corporations limit their goals in generating the highest profits and returns to owners, regardless the health and safety of employees, the environment, and general public. An institutional logic, therefore, has been raised by professor of Harvard Business School－Kanter. Unlike traditional practices, this logic addressed a successful company is a vehicle for enhancing societal welfares, rather than only a machine to make money. Not only can most well-established companies distribute sound returns to shareholders, but also build long-lasting institutions. In high-performing business, both institutional logic and economic logic are critical to operations and strategic decision making. There are six fields mentioned in the passage, which are a common collaborative purpose, a enduring focus, emotional engagement, partnering with society, innovation, and self- organization－changing corporate and leadership behavior at all, as well as constructing the base of a solid and stable competitive advantage.
Effective governance that ties the decisions of managers up with the interests of shareholders can help develop a competitive advantage. (Ireland, P.250) The article, however, suggests a different way of governing the corporate, which I think is more comprehensive to develop a sustained institution. In order to ensure continuous returns, a company need to empower the employees, engage emotion, lead based on esteem, and contribute to related community.
Corporate social responsibility, actually, should be internalized as the governance mechanism. As far as the business can offer, it is aimed at satisfying the needs of customers and continuous value creation. A company, therefore, should create an identity, which can reflect the standing values, for the people to recognize what it is and how it will
Cited: Ireland, R. D. The Management of Strategy : Concepts. 9th ed. / R. Duane Ireland, Robert E. Hoskisson, Michael A. Hitt. ed. Singapore]: South-Western/Cengage Learning, 2011. Print. Kanter, Rosabeth Moss. "How Great Companies Think Differently." Harvard Business Review 89.11 (2011): 66-78. Business Source Complete. Web. 19 Nov. 2012. "Corporate Responsibility" Hang Seng Bank. n.d. Web. 26 Nov. 2012. <http://bank.hangseng.com/1/2/about-us/corporate-responsibility/corporate-responsibility> "Corporate Social Responsibility - Hong Kong" Standard Chartered Bank (Hong Kong) Limited. n.d. Web. 26 Nov. 2012. <http://www.standardchartered.com.hk/sustainability/en/> "Standard Chartered drums up Employee Volunteering Month By Visiting Special Needs School " Standard Chartered Bank (Hong Kong) Limited. 8 May. 2012. Web. 26 Nov. 2012. <http://www.standardchartered.com.hk/news/2012/press_20120509.pdf>