upload ethics 2

Effective Powers Of the five powers, the establishment of an ethical climate calls for much debate. However given the current climate of Paradigm Toys, that being one of coercive power; the use of referent power is likely going to be the most effective in changing ethical climates. The current climate of coercive power, is displayed through the employees being fearful of the loss of jobs if quota’s are not met- which often causes defective products to be produced. This defective product issue has been seen in a large number of recalls within the past three years. To combat this current ethical culture of ensuring quotas are met but failing to produce a quality product, developing a culture of referent power should be implemented. Referent power is a good tool to utilize to ensure the previous power structure- either coercive power or reward power gone wrong. “Referent power is sometimes thought of as charisma, charm, admiration, or appeal. Referent power comes from one person liking and respecting another, and strongly identifying with that person in some way” (Referent Power, 2014). Implementation of referent power will take time in that quantity for some time to ensure that employees move from the desire to meet quota to ensure job security and instead focus on a quality product with an eye on safety for the stakeholders.
Primary and Secondary Stakeholders

Primary stakeholders, those who benefit directly from the business activities of Paradigm Toys are many. Primary stakeholders are the employees themselves, the management and leadership of the organization, parents of children for which toys are purchased, and the most primary in terms of who reaps the most benefit of the product, the children who enjoy the toys produced. As primary stakeholder, we will focus on the employees themselves and the purchasers of said toys. Secondary stakeholders are those who benefit indirectly, are families of the employees who gain great benefit from the employment of

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