Position Paper #2 – Authentic Leaders

Source: Wall Street Journal, Dec 16, 2003Title of full article: Wanted: Authentic LeadersAuthor: Bill GeorgeSummary of Article:After being dragged through Enron’s fictitious deals, Dennis Kozlowski’s toga party, outrageous termination payments to failed executives, and illicit trading within mutual funds, we now have an ethics scandal at Boeing and a boardroom brawl at Disney. There seems to be no end to the misdeeds being uncovered, as leaders continue to put their institutions at risk. One thing’s clear: Tossing corporate leaders in the slammer and passing the Sarbanes-Oxley law is not enough to eradicate corporate scandals. First, we have to address the root cause: an exaggerated and unbalanced emphasis on serving the short-term interests of shareholders, quarter after quarter. This mania for making Wall Street’s numbers is at the heart of why some CEOs cheat and others have simply mismanaged.For decades the CEO’s mandate was to serve customers with innovative products, great service, and terrific value. By tightly managing costs and assets, we knew sustainable profits and stock price increases would follow. This changed, and in the late 1980s, Wall Street intervened with a new mantra, “Maximize shareholder value right now or we’ll get someone who can!” The speculators’ demand to CEOs was, “Forget the long-term investments. Create immediate profits so we can make a big gain on your stock, sell it off, and move on to the next company.”How do we get back to creating long-term value? Boards should choose authentic leaders for character, not charisma; for their values, and for their ability to motivate employees to create genuine value for customers. CEOs should forget about meeting quarterly expectations and concentrate on their customers and employees and on sustaining the fundamentals of the business. They should be paid strictly for company performance, not stock performance, and pledge to hold their own stock of the company while they are in office. For its part, Wall Street should refocus its research and investments on growth companies and on authentic leaders that have winning strategies for the long term. The public trust will not be restored until we have authentic leaders running our corporations and the wise heads on the Street realize how lasting shareholder value is created.Prepare a 500 word essay considering the following topics:APA citation for article: George, B. (2003, Dec. 16). Wall Street Journal, retrieved online from https://www.wsj.com/articles/SB10715315771685400State which of the following would be the appropriate managerial goal for companies – Shareholder Wealth Maximization or Profit Maximization (may need to research the definitions of these two on the Internet.)How does the “root cause” as identified in the above summary relate to Profit Maximization? (think short-term versus long-term results.)What should be the role of values and character in corporate leaders?Why do you think this article calls the needed leaders “Authentic Leaders?”What Biblical/Christian principles should companies incorporate into their company policies to help this situation?Use an “Essay” format:Introduction paragraphBody paragraphs with supporting informationAnd a conclusion/summary paragraphUse APA formatting for all parenthetical references and work cited pageAPA citation for article: George, B. (2003, Dec. 16). Wall Street Journal, retrieved online from https://www.wsj.com/articles/SB10715315771685400

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