KENNETH C HOLMES
LEADERSHIP AND ETHICAL DECISION MAKING
CARMEN KIMBLE
NOVEMBER 23, 2014
PHASE :1 INDIVIDUAL PROJECT
To start with, as stated by McMahon (2013, para.1), “key stakeholders for any project
typically come from within and are normally those who have endorsed or identified the need for
project activity”. According to Stakeholders Roles and Responsibilities ITD (2014, para. 1),
“stakeholders are the people or groups that are in any way affected by the new products or
services, and the organization will rely on the various stakeholders prior to developing a project
plan”.
According to Stakeholders Roles and Responsibilities (2014, para. 11), “stakeholders are
all those groups, units, individuals, or organizations, internal or external to our organization,
which are impacted by, or can impact, the outcomes of the project. This includes: the Project
Team, Sponsors, Steering Committee, Customers, and Customer co-workers who will be
affected by the change in customer work practices due to the new product or service; Customer
managers affected by modifies workflows or logistics; Customer correspondents affected by the
quantity or quality of newly available information; and other similarly affected groups”.
Based on my research, there are numerous definitions and ideologies about who the
stakeholders are in any situation. My research attempts to address all the possible or actual
stakeholders, and their role in this situation.
Stakeholders
Stakeholders are defined as all members of the organization team who have influence on
the project team members, are affected by and involved in the development and implementation
of the products and services provided as a result of the project activities. The internal
stakeholders include: UWEAR, Joe Smith, and all company employees, internal to the
organization. External stakeholders are defined as clients with the need for the product or service
the project seeks to develop, or produce, and stockholders who include individuals, companies or
other institutions that own at least one share of a company stock. External shareholders include:
Peninsula Hotels, Bill Bateman, and Threads4U (Stakeholder Roles and Responsibilities ITD,
2014)
UWEAR (Performing Organization):
UWEAR employees
UWEAR Clients
UWEAR Stockholders (Shareholders)
Joe Smith/ (Territory Representative/ Project Manager)
Peninsula Hotels (Bill Bateman/the Customer/Client/ directly involved with this contract)
Threads4U (the competition)
The ethical responsibilities of each stakeholder
UWEAR/ (Performing Organization), the responsibilities as stated by (Stakeholder Roles and
Responsibilities, 2014 and McMahon, 2013) are:
1. To serve the needs of all stakeholder by being financially, morally, and environmentally
responsible.
2. Understand the business drivers and ensure that the project fits with the strategy for their
area of business.
3. Securing and providing detailed requirements and a financial plan including: spending
authority and resources for the project.
4. Act as a vocal and visible champion, legitimizing the project goals and objectives, keep
abreast of major project activities and informing all those who need to know, and is the
ultimate decision maker for the project.
5. Participate in and lead project initiation, and the development of the project charter.
6. Participate in project planning and the development of the Project initiation plan.
7. Establishing the training and support required.
8. Provide support for the Project manager: assists with major issues, risks, problems, and
policy conflicts; remove obstacles; is active in planning the scope; approves scope
changes; signs off on major deliverables; and signs off on approvals to proceed to each
succeeding project phase.
9. Taking ownership of appropriate deliverables.
10. Communicating throughout the life of the project.
11. Project closure.
UWEAR (Employees), the responsibilities as stated by (Hearst newspaper LLC, 2014) are:
1. Meeting job expectations and fulfilling daily work duties.
2. Self-responsibility, which refers to each employee taking responsibility to their own
actions outside of normal job duties. It means being accountable and accepting blame for
errors and omissions, and acknowledging the successes and contributions of others.
3. Be responsible for reporting illegal or suspicious behavior and policy violations.
4. They are expected to live up to the corporate code of ethics.
5. Be compliant with anti-discrimination laws.
UWEAR Clients
1. To ensure their customers and employees, that they represent their business needs to their
suppliers.
2. To ensure all their stakeholders and employees, that they continue profitable operations
and their commitment to their long term goals and objectives.
3. To serve the needs of all their stakeholders by being financially, morally, and
environmentally responsible.
4. To secure and maintain beneficial and profitable contracts with their suppliers so they can
maintain profitability, and secure their long term success.
UWEAR (Shareholders), the responsibilities as stated by (The Roles of Shareholders and
Directors, 2004-2008) are:
1. To pass resolutions at general meeting by voting through their shareholder capacity.
2. To exercise their ultimate control over the company and how it’s managed.
3. To make clear their dissatisfaction regarding the current condition of the company, and
impress on the need to correct the situation.
4. To make UWEAR comply with the requirements of the provincial securities
commissions and the stock exchange: which imposes requirements for shareholder’s
approval.
5. Shareholders who are dissatisfied with how the directors are running the corporation can
remove the directors or refuse to re-elect them. This move may be difficult when the
shares are widely held, but it’s possible.
Joe Smith (Project Manager), the responsibilities as stated by (Stakeholders Roles and
Responsibilities ITD, 2014 and Stakeholders Roles and Responsibilities, 2014) are:
1. He is responsible for ensuring that the Project Team completes the project.
2. For developing the project plan with the team and manages the team’s performance of
project tasks.
3. For executing tasks and producing deliverables as outlined in the Project Plan.
4. Secures acceptance and approval of deliverables from the Project Sponsor and
Stakeholders.
5. For communication, including: status reports, risk management, escalation of issues that
cannot be resolved in the team, and, in general, making sure the project is delivered in
budget, on schedule, and within scope.
6. To encourage Peninsula Hotels to continue their relationship, and continue the contract,
by allowing UWEAR to continue to provide the quality of products and services they
require: at a price that meets both needs.
7. Offer Peninsula Hotels a long term view of their potential business relationship.
Peninsula Hotels (Bill Bateman), the responsibilities as stated by (Stakeholders Roles and
Responsibilities ITD, 2014 and Stakeholders Roles and Responsibilities, 2014) are:
1. To accurately represent their business needs to the project team.
2. To validate the deliverables that describe the products and services the project will
produce, to test the products and services, and to use and evaluate those products and
services while providing feedback to the project team.
3. For achieving consensus about project issues and outputs, and communicating it to the
project team.
4. To attend project meetings as requested by the project manager, review and approve
process deliverables, and provide subject matter expertise to the project team.
5. To serve the needs of all stakeholder by being financially, morally, and environmentally
responsible.
6. Understand the business drivers and ensure that the project fits with the strategy for their
area of business.
Threads4U, some of the responsibilities as stated by (Don Knauss, 2010) are:
1. To secure new clients to increase their customer portfolio and profit margin.
2. To all their stakeholders, and employees, to ensure their continued profitable operation
and their commitment to their long term goals and objectives.
3. To influence Peninsula Hotels to sign them on as a client by establishing a relationship
based on a foundation of integrity and trust, as well as providing the quality of products
and services they require: at a price that meets both needs.
4. Offer Peninsula Hotels a long term view of their potential business relationship.
5. To serve the needs of all stakeholder by being financially, morally, and environmentally
responsible.
6. Understand the business drivers and ensure that the project fits with the strategy for their
area of business.
The appropriate response in this situation for each stakeholder
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UWEAR must make clear that a price reduction isn’t possible and therefore can’t
happen. They must impress on Peninsula Hotels that they have provided the
quality required at a price that met their needs, and they have been completely
satisfied with the products and services that have been provided. They should
remind them of the excellent relationship that has been developed over the past
year, and that they were ultimately offered a price structure that fell below what
was initially approved.
UWEAR employees need to be concerned or even worried about cutbacks and
layoffs. If UWEAR loses this client, they are facing the serious decision of
laying- off employees because of slow sales and low profit margins. If the
contract isn’t renewed, they may need to update their resumes and start looking
for new employment.
UWEAR CLIENTS do not have any real responsibility in this contract, but they
have an obligation to their own stakeholders. They do have a responsibility to
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secure and maintain beneficial and profitable contracts with their suppliers so they
can maintain profitability, and secure their long term success. Given this
responsibility, if UWEAR loses their contract with Peninsula hotels, they will be
faced with the potential of lay-offs and shrinking of their business pool. UWEAR
clients will be faced with securing new contracts with other suppliers. At this
point, all their clients can do is wait to see what happens. I would suggest they
create a contingency plan, and seek potential new vendors, in the event UWEAR
loses the contract.
UWEAR Shareholder should remind UWEAR’s management team of their
responsibilities to their shareholders, and that if the situation isn’t corrected, there
are remedies for that (a change in the board/CEO).
Joe Smith needs to come up with a plan to save the contract and his job. I highly
suggest he gets creative and steer away from a price reduction: it’s not going to
happen.
Peninsula Hotels (Bill Bateman) needs to make a decision whether the current
contract and relationship is worth maintaining, or accept a contract with
Threads4U and hope that relationship will prove to be as fruitful and beneficial as
the one with UWEAR. They do need to consider that the current contract has
provided mutual benefits to both parties, and neither party has had issue with
those benefits.
Threads4U should put on the pressure, impress on Peninsula Hotels that the
quality and price of their products more than meets the hotels parameters, and
present the potential for a long term, mutually beneficial relationship.
Joe’s proposal to the management team
At this point, I suggest that Joe propose a partnership: their contract has been beneficial
to both parties, and has enabled a good relationship to develop. Joe has utilized the amenities of
the hotel for professional and personal purposes, which has helped create new relationships for
both parties. I think to end the relationship because of an outside party offering to undercut their
existing contract, seems futile and senseless. Joe should propose a marketing partnership to
UWEAR’s and Peninsula Hotel’s management team. Under this partnership: the hotel chain
would host fund raisers, promotional shows and entertainment venues, and guided tours of the
hotel and its amenities. UWEAR would provide the uniforms and costumes, acting as a sponsor
and advertising partner. I would also recommend pushing for an extended contract, for two to
three years.
If Peninsula Hotels doesn’t agree with a partnership arrangement, then UWEAR and
Peninsula Hotels needs to arrange a meeting of the minds, and come up with a plan that will
work for both parties. I believe, if both parties put their cards on the table and spelled out their
best possible solutions, a reasonable contract would be possible.
Joes support for his proposal
Joe should point out that by under the Marketing Partnership: Peninsula Hotels would
gain serious public recognition for hosting fund raisers: promotional shows and entertainment
venues would increase their banquet facility, restaurant and bar sales: and guided tours would
increase public and local business awareness regarding their facilities and amenities. UWEAR
would benefit by providing the uniforms and costume worn by the hotel staff and entertainers,
and by being a partner in the marketing of all set engagement. Both parties would be provided
equal advertising and promotional billing, and benefit from the dual advertising efforts.
The next step would be to convince Peninsula Hotels that they would benefit immensely
from the partnership, and that not just any supplier would offer such a proposal. For a uniform
supplier to offer such a deal: is a big deal, and both parties would have the potential to make
serious gains if both parties would agree on the partnership.
In regard to an extended contract: it would alleviate the anxiety and time involved in
negotiating annual contracts, and would allow time for the parameters of the partnership, and its
potential benefits to blossom. If they weren’t willing to accept an extended contract, I would
suggest, at minimum, Peninsula Hotels provide one year to give the partnership proposal an
opportunity to work. After the one year, evaluate the contract to determine if the partnership
actually performed the way it was expected to. If the partnership performed well, then renew the
partnership/contract for an extended period.
REFERENCES
Don Knauss. (2010, January 19). The Role of business Ethics in Relationships with Customers. Retrieved
from www.Forbes.com/2010/01/19/Knauss-clorox-ethics-leadership.
Hearst newspaper LLC. (2014). Types of Workplace Responsibility. Retrieved from
smallbusinesschron.com.
McMahon, C. (2013, September 19). outsourcemagazine.com. Retrieved from
www.outsourcemagazine.com.
Stakeholder Roles and Responsibilities. (2014). Retrieved from
www.2.cit.cornell.edu/computer/robohelp/cpmm/Project_Roles_and_Responsibilities.
Stakeholder Roles and Responsibilities ITD. (2014). Retrieved from
www.nd.gov/itd/content/stakeholder-roles-and-responsibilities.
The Roles of Shareholders and Directors. (2004-2008). Retrieved from
www.venturechoice.com/articles/roles_of_shareholders_and_directors.html.