ASSIGNMENT:

LEADERSHIP AND CSR

SUBMITED TO:

MS AMNA ASIM SHEIKH

SUBMITTED BY:

ZEESHAN (38)

DATE OF SUBMISSION:

August 16, 2022

 ORACLE OF OMAHA

WARREN BUFFET

Warren buffet is known to be one of the richest people on planet Earth. He is the CEO of Berkshire
Hathaway, a philanthropist, affluent, entrepreneur, and a great investor of all the time. according
to the Forbes, he has a net worth of nearly $82 billion. This explicates why Warren Buffett's
investing pattern has reached mythological grandeur. Buffett hews to many fundamental findings
and an investment philosophy that is highly regarded over the world. Rather of focusing on the
subtleties of the stock market's supply and demand, Buffett takes into account firms as a whole.
Warren Buffett was born in 1930 in Omaha. He became fascinated by the business sector and
investment, especially the stock market, from an early age. Buffett bought six-packs of Coca-Cola
bottles for twenty-five cents each when he was six years old and sold them to his pals for a nickel
apiece. As a result, he made a five-cent profit. Buffett had an appetitive passion in producing
money, which had led to a prolonged life of success and wealth.

WARREN BUFFETT LEADERSHIP STYLE

Buffett's leadership style is known as Laissez-Faire, quite often known as "delegative leadership,"
and it has been demonstrated to mitigate productivity whilst extending other resources for both
individuals and teams. This leadership approach can be effective with skilled and motivated
individuals, conversely individuals who aren't as skilled tend to fail and miss requested deadlines.
Buffett seeks employees that are induced and competent in this circumstances given that he is
contingent upon that results.

BUFFETT AS A TRANSFORMATIONAL LEADER

Buffett is referred to as a transformational leader. Buffett has had ideology for his company's
growth and was capable of transforming that goal become a reality. Buffett has been able to build
and flourish his firm by persuading his staff to have the same goal and strive for it. When Buffett
acquired Berkshire Hathaway, it was deemed a failure, however he recognized the potency in what
his new business might have been. He contemplated the firm's optimal approach and put in place
a goal for the business organisation to eventually achieve that level. His transformative
philosophies benefitted him in rotating Berkshire Hathaway around from a disappointments to a
triumph. Berkshire Hathaway's performance perfectly encapsulates why Buffett is an immaculate
transformative leader. Buffett has quickly discovered that the accomplishments of a team or
organization, rather than personal success, should entice a CEO.

THE WARREN WAY OF MOTIVATING EMPLOYEES

Warren Buffett has imparted substantial and savvy counsel to his employees and so forth his
disciples, causing his skill sets and self‐efficacy to rub off on others. Rather than a list or book of
regulations, he provides his employees what are referred as "principles of behavior." Instead of
basing his workforce on rules and judgement, he bases them on how much he can entrust them to
conduct a stellar job. Employees have the opportunity to thrive when leaders expose their faith in
them.

As Buffett witnessed, putting faith in employees without a compassionate corporate culture might
lead to dispiriting metrics. For employees to be proficient, effective, and, most pressingly,
trustworthy, the perfect culture must be instilled. He implies every one of his team members know
that their arduous work is valued when it comes to highlighting team members that function good.
Leaders are implored to incentivize and promote their people, even if it is merely with gratitude.
Motivating employees boosts their motivation and confidence, which leads to organizational
success on the whole. Employees that have strong morale are ecstatic, which means they are more
productive.

THE RISE OF BERKSHIRE HATHAWAY

Berkshire Hathaway is a multilateral conglomerate headquartered in Omaha, Nebraska. Because

it owns controlling holdings in a number of firms, the corporation has been capable of growing.
The corporation emerged in the 1800s as a textile industry, but today they wholly exert influence
multiple companies like Geico, Fruit of the Loom, Duracell, and Dairy Queen, among others. It
also has a stake in Coca-Cola, Wells Fargo, Apple, Goldman Sachs, Procter & Gamble, and Bank
of America.
Buffett crafted this corporation, which has reached epidemic proportions in intrinsic worth since
for his techniques and control. Berkshire Hathaway is the world's third largest legitimate business
and the world's largest financial services organisation. Berkshire Hathaway has indeed been
positioned to contribute to many myriad services and goods for patrons through its controlled
ownership in various industry verticals. Insurance, laptops, food, and everything in between are
among the avenues available.
WARREN’S BELIEF OF OPTIMISM

To begin with, Buffett is an optimistic person in terms of ideas. Even as he ages, he upholds a
jovial demeanor. Optimistic leader inspires their teams through the conundrums of reality and
conflict. Buffett is a leader addressed for delving at the positives through intelligence and insights
rather than the adverse semantics.

WARREN’S ART OF MENTORSHIP

Second, he mentors his employees to enable them to fully grasp. It's one aspect of being able to
trust a leader, but leaders are much greater when they can help communicate difficult jargon into
simple one that everyone can acknowledge. This is pivotal in the discipline of finance, where
concepts are too esoteric for most individuals to comprehend. Buffett can potentially make finance
plausible to anyone and everyone, putting his staff' jobs intuitive.

WARREN’S VALUES TO DIVULGING MISTAKES

Thirdly, Buffett concedes his foibles and makes no excuses. He does not constitute the perfect
strategist, and he is completely honest about it. This aids employees in comprehending that leaders
like Buffett are human, and that they do not dwell on a different trajectory than them. Recognizing
discrepancies encourages leaders and employees to better relate to one another and help boost their

relationship.

WARREN’S PHILOSOPHY OF LEARNING

Finally, Buffett embarks on various task at Berkshire Hathaway in a bid to keep evolving and
learning. Even now in his late eighties, Buffett strives out opportunities to gain experience and
perhaps even teach. Buffett prioritizes education so that he may help people and do responsibilities
in any capacity he can, and he stimulates others in the organisation to do the same.

WARREN BUFFETT ON THE CHALLENGE OF AUDIT COMMITTEE

Warren Buffett, Berkshire Hathaway's largest shareholder and CEO, is well regarded for his value
investment theory, conservatism on governance and accounting challenges, and personal frugality
despite his enormous fortune. In his annual letter to Berkshire Hathaway shareholders, he goes on
to discuss the audit committee of a board of directors.
Audit committees are unable to audit. Only an outside auditor can scrutinize whether the earnings
assessed by management are legitimate. Reforms that overshadow this fact and instead focus on
the audit committee's structure and charter will achieve nothing.
To accomplish this job, the committee must ensure that the auditors are more concerned with
manipulating its members than with unnerving management. Auditors have not felt this way in
prior years. Instead, they have often seen the CEO as their customer, rather than the shareholders
or board. That has been a natural consequence of day-to-day workplace relationships, as well as
the auditors' understanding that despite of what the book says, the CEO and CFO pay their fees
and dictate whether they are retained for auditing and other duties. The recently implemented
restrictions will have negligible impact on this reality.
SOLUTION

Audit committees, in my opinion, may achieve this purpose by asking four questions of auditors,
the responses to which should be documented and disclosed to shareholders. These are the
questions:

• If the auditor were entirely responsible for preparing the company's financial statements,
would they have been produced differently from the method management chose?
This inquiry should address both material and nonmaterial distinctions. If the auditor had
acted differently, both management's argument and the auditor's reaction should be made
public. The facts should subsequently be evaluated by the audit committee.
• Would the auditor have received the information necessary to comprehend the company's
financial performance during the reporting period if he were an investor?
 • Is the firm using the same internal audit method as the auditor would if he were CEO? If
not, what are the distinctions and why?
• Is the auditor aware of any accounting or operational activities that have the intention and
effect of shifting revenues or costs from one reporting period to the next?
If the audit committee raises these questions, the makeup of the committee—the focus of most
reforms—is unimportant. Furthermore, the approach will save time and money. Auditors will do
their duties when placed on the spot. If they are not called to account

WARREN BUFFETT IN A NUTSHELL

In a word, Buffett's leadership style prevents leaders from interfering with decision-making
processes. It provides employees complete control over the show.
Buffett has previously stated that he allows his firm owners to "run on their own, without our
controlling and regulating them in any way." "Most managers use the independence we provide
them beautifully by retaining an owner-oriented mentality," he says.
Such paradoxical tactics are problematic in bureaucratic workplaces with several bosses making
decisions because they require micromanagers to relinquish control and cease peering over
people's shoulders. Few individuals are able to completely let go and cease interfering with how
others self-manage to the best of their abilities.
 THE TECHNOKING OF TESLA

ELON MUSK

Elon Reeve Musk is South African origin American tycoon, business investor and entrepreneur.
He is the founder, CEO and Chief Engineer of his company SpaceX, angel investor, CEO, and
product architect of his company Tesla Inc., also founder of The Boring Company and co-founder
of Neuralink and OpenAI. As per the information of Bloomberg Billionaires Index and Forbes,
Musk is the wealthiest person as of July 25,2022 with an estimated net worth of $242billion.
Musk has been described as a micromanager, and he has also referred to himself as a nano
manager. Musk does not develop formal business strategy; instead, he addresses technological
difficulties through iterative design and is forgiving of mistakes. Musk has forced his employees
to utilize business jargon and has undertaken ambitious, expensive, and risky initiatives against
the advice of his advisors, such as removing front-facing radar from Tesla Autopilot. Musk
indicated intentions to lay off 10% of Tesla's workers in 2022 owing to economic worries. Earlier
that month, he halted remote work at SpaceX and Tesla and threatened to dismiss staff who did
not work 40 hours per week in the office.
Some have lauded Musk's leadership, crediting it with the success of Tesla and his other ventures,
while others have slammed him as cruel and demanding. Musk berating staff is shown in the 2021
novel Power Play. According to the Wall Street Journal, Musk drew criticism from his engineers
for putting customer lives in danger after insisting on branding his vehicles as "self-driving," and
several resigned in reaction. According to the New York Times, Musk's attitude is absolute.
QUESTIONING MUSK’S ABILITY TO RECRUIT AND KEEP

His corporate career includes numerous spectacular achievements, from PayPal to SpaceX. He has
demonstrated tenacity and passion in a variety of pursuits. He has also proven the capacity to adapt
to a changing market. And his public speech is extraordinarily captivating, forthright, and
aggressive. Certainly, these characteristics are more compatible with bold leadership than with
poor leadership.
However, there is more to the story. While the preceding described criteria are consistent with bold
leadership, Musk currently lacks many additional characteristics of a bold leader.
Consider his ability to recruit and retain exceptional professionals. Tesla Inc. has been without a
Chief Operations Officer for some time. The Chief Accounting Officer just quit after barely a
month on the job. There are rumors that Tesla's Vice President of Global Finance will then be
exiting as well. Bad leaders, unlike bold leaders, struggle to retain top talents owing to weak
corporate cultures. This calls into doubt not only Musk's ability to develop team dynamics, but
also his interpersonal abilities and social adjustments.
QUESTIONING MUSK’S VALUES AND PRIORITIES

Bold leadership develops initiatives based on sound beliefs and values, whilst ineffective
leadership may not. Incompetent leaders tend to prioritize their own self-interest out over interests
of the business or client, customer, or market. They barely care about the general benefit.

Musk has indulged in dubious conduct in both domains in recent times. In concerns of values,
Musk recently surfaced on Joe Rogan's show, ingesting cannabis, and sipping whisky. Musk also
dubbed one of the Thai caver rescuers a pedophile without explanation in July. What for? Because
the individual stated Musk's offer to assist with a mini submarine was a publicity gimmick. These
are certainly not the traits of a successful, effective, competent, and fearless leader.
Each of these gaffes necessitated Musk's apology, and each resulted in a dip in Tesla's stock price.
Nonetheless, these are only a few activities that signify poor leadership. Musk has chastised
analysts for being ignorant and illiterate during quarterly earnings sessions. Conversely, he has
repeatedly mocked short sellers, asserting they undermine the company's worth.
QUESTIONING MUSK’S ABILITY TO SHARE SPOTLIGHT

Musk's propensity to embrace the spotlight is widely known. His attention-grabbing endeavors
have overlapped with the advent of fancy hybrid vehicles, satellite launches, and transit tunnels.
That if used correctly, these opportunities in the forefront may indeed be advantageous. Such
arenas are utilized by bold leaders for communicating, vision, and enthusiasm. By using the media
ineptly, lousy executives create obstacles and hinder their organizations. Musk has frequently
portrayed the latter, as he seems to be becoming excessively assimilated of his own vanity.

QUESTIONING HIS “TOO MANY” HATS

Tesla not only eschews a Chief Operations Officer, but Musk also doubles as Chairman and CEO.
Apparently having difficulty retaining phenomenal individuals, he does indeed have dilemma
delegating power or influence on others. Even if Musk could anticipate all of these mandates at
Tesla, he is only an appendix employee. A copious fraction of this time is expended on SpaceX
and other endeavors. Musk underlined this in a recent New York Times interview, revealing how
inundated he feels with roles. This failure to accurately delegate tasks and relinquish leadership
underscores dimensions of poor leadership.

QUESTIONING MUSK’S BOLDNESS

For any venture, poor leadership may steer the company in the back burner. This argument appears
to be exponentially true for Tesla. This is where Musk's temerity enters the picture. For instance,
after threatening to take Tesla private (and not doing so), stock prices have tumbled by 27%.
Conversely, Tesla has repetitively (if not repeatedly) failed to implement manufacturing targets.
Henceforth, the organization was between $9 billion in debt, with sales that pale in contrast. When
confrontational leadership isn't followed up by performance, when threats are thrown out and yet
no measures are taken, composure tends to suffer. This is unambiguously where Tesla is at the
moment.

THE CHALLENGE OF TAKING TESLA PRIVATE

For years, Musk and the Securities and Exchange Commission (SEC) have been embroiled in
turmoil. The agency sued Musk in September 2018 after he tweeted that he had secured the
prescribed capital to take Tesla private roughly $420 per share, contending that Musk had swindled
investors about the plausibility of a go-private agreement. The parties struck a deal a few days
afterwards when the litigation was filed. Musk did not either confirm or refute the indictments in
the agency's objection against him, nevertheless he was mandated to step down as Tesla's chairman
for three years. Musk and the corporation were both sanctioned $20 million, and Tesla attorneys
are now lured to scrutinize any of Musk's social media remarks that may be pivotal to Tesla
shareholders.

SOLUTION

Consequently, to a healthy, effective, and appropriate organizational ethos, Musk could perhaps
detach the board and the CEO from the outset so that the audit and records can somehow be
dissected satisfactorily and candidly. Has always been the CEO and the company's top shareholder
irrefutably yields discrepancies, which directly or indirectly affects subsequent parties involved.

THE IDEA OF “AUTO PILOT” AND CONSEQUENCES

Quite a drivers have been killed while operating Tesla's sophisticated driver-assistance technology,
Autopilot. The catastrophic incidents have spurred apprehensions about Autopilot's functionality
and how diligent drivers must be when harnessing the feature.
When enabled, Autopilot keeps a Tesla centered in its lane and upholds a stipulated speed while
keeping a reasonable distance from the preceding vehicle. It isn't self-driving, and Tesla professes
drivers must sustain their hands on the steering wheel and pay much attention, but owners have
been known to exploit the system. Tesla claims that vehicles equipped with Autopilot have lower
accident rates than the norm. But Tesla's statistics should have been treated with a pinch of
skepticism.
SOLUTION

Engineers admonished in the formative development of Autopilot technology that it could become
the least desirable spectacular failure for drivers, with crashes as well as fatalities. Musk should
have responded to his engineers and dedicated more on mending engineering vulnerabilities rather
than merely thwarting his vision statement.