Leadership Business Ethics and Organisational Change

Question: Discuss about the Leadership for Business Ethics and Organisational Change. Answer: Introduction: The focus is on a small retail partnership firm started by Craig Fraser and Michelle Mason with contributions amounting to $60000 and $50000 respectively. Trust was bestowed by the partners on each other and it was Craigs decision to distribute profits according to the initial capital contribution. It is witnessed here that in the two consecutive years following the starting of the business, Craig withdrew $20000 from his capital investment to reduce his house mortgage. The second partner Michelle had no problems in Craig withdrawing money from business as he is the one who has put the money in the partnership. Both were active partners in the business and were permitted to a salary of $30000 on the supposition that their contribution would be equal to the management of the business. The needs of the chapter will focus on the probable stakeholders in the situation and determine whether Craig has done anything wrong in withdrawing money twice from his capital investment for his personal use. The role of stakeholders are increasing everyday Craigs withdrawal of money was lessening his contributed amount to the business. Craigs buying a new house and taking money out of the business for that can be stated as a personal family issue which was interfering with business decisions giving rise to conflict of interest and ethical concern (Gray 2013). Every business enterprise irrespective of its size and shape are bound to face some challenges along the way, especially in case of partnership where partners have different personality and thinking. However, it has been stated in the study that, Michelle, the other partner, has a lot of faith in Craig in setting up the financial side of the business as she was not comfortable with numbers. Michelles job was to deal with people like what the public relation people do. She totally ignored the businesss monetary part which might have lead Craig to do things which could have been unethical (Ferrell and Fraedrich 2015). As stated that profits would be distributed according to the initial capital put in by both which resulted in the ratio of profit to Craig and Michelle being 6:5. But as Craig decided to withdraw money for the purpose of buying his house, his capital contribution got reduced to $40000, wherein the ratio should then be changed to 4:5. But Michelle did not take into account those changes that can affect the profit distribution. It seems Michelles trust on Craig is way more than what she actually should do, though Craig did put back $20000 into the business again, once his purpose was served. Moreover the partners are getting an equal salary of $30000 from the business on provision that their contribution towards management is equal. The partners have distribut ed between themselves the job work and as stated they both work actively. The requirements of the chapter will be further fulfilled in the following stages where a detailed look will be given in the inside story. Reference: Ferrell, O.C. and Fraedrich, J., 2015.Business ethics: Ethical decision making cases. Nelson Education. Gray, R.H., 2013. Business ethics and organisational change.Leadership Organization Development Journal. Omar, A.T., Leach, D. and March, J., 2014. Collaboration between nonprofit and business sectors: A framework to guide strategy development for nonprofit organizations.VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations,25(3), pp.657-678. Kull, M. and Tatar, M., 2015. Multi-level governance in a small state: A study in involvement, participation, partnership, and subsidiarity.Regional Federal Studies,25(3), pp.229-257.