core principles of capitalism

Organizational Behavior Module 1 – Written Assignment OB in Action Case Study In the case study about Whole Foods Markets, it talks about their core principles explained by their Cofounder and Co-CEO, John Mackey. He also explains what capitalism is and how it flourished. The basic principles that helped capitalism flourished is, property rights. People have the ability to trade their property to whomever they want. Another principle of capitalism is the rule of law. Laws and regulations should be well understood so that you can factor them into your business decisions.

Business should also be conscious of their higher purpose and not just worried about maximizing their profits and shareholder value. Their second core principle explains that you have to recognize the stakeholder model. Customers, employees, investors, suppliers, larger communities and the environment are all interdependent. You should operate your business in a way that it’s not a zero-sum game. The third principle is about conscious leadership. Leadership should identify their accomplishment by the accomplishments of the organization and they’re trying to serve the organization and its purpose.

Their fourth and final principle ties in all their other principles. Having conscious leadership will help create conscious employees that will help the organization fulfill its higher purpose. He also explains that Whole Foods core principles and where they come from. He believes that the business enterprises are like any other community. He believes that they can aspire to the highest values that inspire humans. He also goes on to say that Whole Foods’ highest purpose is a historic one that animates him and what animates the company, “try to change and improve our world”.

John Mackey continues to talk about the second principle of conscious capitalism and Whole Foods’ purpose. It seems to be human nature to assume that if one side is winning another has to be losing but that doesn’t always have to be the case. He give an example of management makes sure that they hire good people that they are well trained, and they flourish in the workplace. He has found that happy team members results in happy customers. When customers are happy they do more business and become advocates for the company. That means investors are happy and it’s a win-win strategy.

You can also expand this to your suppliers and the communities where you do business. 1) What role, if any, does McGregor’s Theory Y play at Whole Foods? Explain. I think McGregor’s Theory Y plays a big role at Whole Foods. They believe that if their employees are happy, you can see it in their work and that would equal to happy customers and also getting their employees committed to the company. 2) How does Whole Foods build human and social capital? Human capital is the productive potential of an individual’s knowledge and actions.

Whole Foods builds human capital by believing that all their employees have great potential to excel. So they invest in their employees training and how they are being managed. Social capital is productive potential resulting from strong relationships, goodwill, trust, and cooperative effort. The way they build on social capital is by conscious leadership, where leaders identify their own accomplishments by their employee’s accomplishments. 3) How does this case bring the profile of the 21st century manager to life? Explain.

In today’s business, employees are not being looked at internal customers and that is how Whole Foods look at their employees. The leaders are also part of the team and don’t just give commands. They also want feedback. They believe that happy employees make a happy customer which in turn brings back business, a win-win relationship. 4) Where would you locate Whole Foods on Carroll’s global corporate social responsibility pyramid in figure 1-3? Explain. I would place Whole Foods at the top of Carroll’s global corporate social responsibility pyramid.

This is because they truly believe in their basic principles, not just have them to appease the public. 5) Which of the seven moral principles in Table 1-4 appear to be in forced at Whole Foods? Explain. I believe that Whole Foods in force Autonomy, Loyalty, Fairness, Humaneness and The common good and possible the two as well. This is because of their second basic principle recognizing the stakeholder model, that everyone is are all interdependent including the environment, suppliers and communities. 6) What appeals to you (or does not appeal to you) about working at Whole Foods?

Explain. What appeals to me about working at Whole Foods is how they invest in their employees and encourage them to succeed. They also listen to their employees for suggestions on how to make things better. LeasePlan Effectively Manages Diversity In 2003 Mike Pitcher, the head of sales and marketing, met with representatives of the vehicle-leasing company’s top customers. In this meeting with his surprise were mostly women. Among LeasePlan’s 450 employees’, women also outnumbered men but the majority of top managers were men at their subsidiary of Netherlands-based LeasePlan Corp.

Because of this they wanted to change their corporate culture so they began to promote more women and hired consultants to revise the company’s pay plan, and offer women career counseling. Today, due to these efforts, three of the eight tip executives are women, which is up from one in seven two years prior. Their women employees are also saying that LeasePlan is a more supportive and collaborative employer. Now as the companies’ chief executive, Mr. Pitcher calls the change an initiative a strategic investment rather than “the politically correct thing to do”.

He says that LeasePlan’s sustainable competitive advantage is in their people. These efforts require sustained commitment at the top. Making it clear from the top that this company isn’t the “flavor of the month” is important and making executives accountable for supporting and promoting female subordinates, particularly at smaller companies. Also in 2006 they hired an Atlanta human-resources consultancy, Pathbuilders, Inc. whose main focus is on women. They developed programs such has skills assessment, career guidance, and tips on communicating and building a “brand”.

It also features networking and a panel discussion with female executives from other firms. About 30 women per year take part in these programs. According to Maria Goldsholl, COO of Mom Corps a staffing company that specializes in flexible employment for women, it appears that the programs are boosting job satisfaction and engagement with LeasePlan’s women employees. Since these programs have been introduced to the company the percentage of women who believed that their management supports their efforts to manage their careers went from 35% in the 2006 survey to 47% the following year and with 71% of the program participants agreeing.

The number of women who believe that their positions are awarded fairly increased to 30% from 22%. 1) What is the business case that is driving LeasePlan’s interest in managing diversity? Discuss. Since LeasePlan doesn’t actually “make” anything and their competitive advantage is their people, whom most are women, they have to make sure that their employees feel that the company is on their side. To maintain a competitive advantage LeasePlan realized that they needed to utilize their female workers and also support them in their rise into higher positions in the company.

Because of all their efforts it raised employee satisfaction at LeasePlan. 2) Compare and contrast the extent to which LeasePlan is using principles from affirmative action and managing diversity. Explain your rationale. Not discriminating against women for job opportunities is a part of affirmative action. Affirmative action was also artificial intervention aimed at giving management a chance to correct an imbalance, an injustice, a mistake or outright discrimination that had occurred in the past.

When Pitcher realized how many women who were in higher positions vs. men and the numbers of female employees were quite high, he believed that he had to do something to correct this imbalance. 3) To what extent are LeasePlan’s efforts consistent with recommendations derived from Alice Eagly and Linda Carli? Discuss. In Eagly and Carli’s book Through the Labyrinth, they discuss how women should build their social capital network. Even though women have achieved so much already, they are still behind men in business.

That’s why the workshops for women provided by LeasePlan will help them take that next step in their careers. 4) Which of R Roosevelt Thomas Jr’s eight generic diversity options is LeasePlan using to manage diversity? I believe that LeasePlan approach focuses on option one of the R. Roosevelt Thomas Jr’s eight options. They are working on including more women at higher levels of the company. From what I read they don’t seem to be denying, assimilating, suppressing, isolating, or tolerating women at higher levels of the company.

In fact they are trying to increase women at higher levels in the company. 5) While LeasePlan’s diversity initiative is clearly working, what recommendations would you make for improving their program? Explain. I think training for male employees about diversity will help improve their program. If they go through diversity training they will become more aware of the different types of diversity. Most people think of diversity as racial issue but it is a lot more extensive than that. They will also become more understanding.

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