BUSINESS, ETHICS AND VALUES

ASSIGNMENT ON
Role of CEO and its impact on business
culture . Comment your answer with support
example.

SUBMITTED TO: SUBMITTED BY:

MS. POOJA BHUGUNA SHIZA WASEEM
ASST. PROFESSOR BBA VI [MARKETING]

GEHU,DEHRADUN ENROLLMENT NO: 2026354

 ASSIGNMENT – 1
ROLE OF CEO AND ITS IMPACT ON YOUR BUSINESS CULTURE. COMMENT YOUR ANSWER
WITH SUPPORTED EXAMPLE:

ETHICS: Ethics also called moral philosophy, the discipline concerned with what is morally
good and bad and morally right and wrong. The field of ethics, along with aesthetics, Ethics
seeks to resolve questions of human morality by defining concepts such as good and evil,
right and wrong, virtue and vice, justice and crime.[4] As a field of intellectual inquiry, moral
philosophy is related to the fields of moral psychology, descriptive ethics, and value theory.
Three major areas of study within ethics recognized today are:

• Meta-ethics, concerning the theoretical meaning and reference of moral

propositions, and how their truth values can be determined;
• Normative ethics, concerning the practical means of determining a moral course of
action.
• Applied ethics, concerning what a person is obligated (or permitted) to do in a
specific situation or a particular domain of action.

BUSINESS ETHICS: Business ethics refers to implementing appropriate business policies and
practices with regard to arguably controversial subjects. Business ethics (also known as
Corporate Ethics) is a form of applied ethics or professional ethics, that examines ethical
principles and moral or ethical problems that can arise in a business environment. It applies
to all aspects of business conduct and is relevant to the conduct of individuals and entire
organizations. These ethics originate from individuals, organizational statements or the legal
system. These norms, values, ethical, and unethical practices are the principles that guide a
business. Business ethics (also known as Corporate Ethics) is a form of applied ethics or
professional ethics, that examines ethical principles and moral or ethical problems that can
arise in a business environment. It applies to all aspects of business conduct and is relevant
to the conduct of individuals and entire organizations. These ethics originate from
individuals, organizational statements or the legal system. These norms, values, ethical, and
unethical practices are the principles that guide a business. Interest in business ethics
accelerated dramatically during the 1980s and 1990s, both within major corporations and
within academia. For example, most major corporations today promote their commitment
to non-economic values under headings such as ethics codes and social responsibility
charters.
VALUES: Values are basics and fundamental beliefs that guide or motivate attitudes or
actions. They help us to determine what is important to us. Ethical values are a set of moral
guiding principles that determine how a company conducts business. These principles seek
to serve and protect others above the organization’s self-interest. Beyond fulfilling legal
obligations, ethical values in business show strong moral character from leaders and
employees. While there are many out there, the following represent some of the core
values and ethics those in the business world should adopt:

• Integrity
• Fairness
• Leadership
• Honesty
• Accountability
• Teamwork
• Charity/Kindness
• Loyalty
ROLES OF CEO :
The CEO (Chief Executive Officer) is the highest-ranking executive in a company, responsible
for making strategic decisions and leading the organization towards its goals. The role of a
CEO is critical to the success of a business, and it has a significant impact on the company's
culture. In this answer, I will elaborate on the role of the CEO and its impacts on business
culture.
- Setting the Vision and Mission:

The CEO is responsible for setting the vision and mission of the company. The vision and
mission of a company set the direction for the organization and define its purpose. A CEO
who sets a clear and compelling vision and mission statement can inspire employees,
customers, and stakeholders to align with the company's values and work towards achieving
its goals. The vision and mission statement can shape the culture of a company by
communicating the company's priorities and objectives.

- Leading by Example:
The CEO is the role model for the entire organization. The CEO's actions and behavior are
closely watched and emulated by employees, and they can set the tone for the company's
culture. A CEO who demonstrates a strong work ethic, ethical behavior, and a commitment
to the company's values and mission can inspire employees to follow suit. On the other
hand, a CEO who engages in unethical behavior or doesn't follow the company's values can
undermine the company's culture and create a negative environment.

- Creating a Positive Workplace Culture:

The CEO has a significant impact on the workplace culture of the company. The CEO
can shape the culture by establishing policies and programs that promote a positive
work environment. For example, a CEO who values work-life balance and encourages
employee wellness can create a culture of well-being and work-life balance.
Similarly, a CEO who values diversity and inclusivity can create a culture of respect
and acceptance.

- Encouraging Innovation:
The CEO can also influence the company's culture by fostering an environment of
innovation. An innovative culture can lead to new products, services, and business models
that can help the company stay competitive. A CEO who encourages experimentation, risk-
taking, and creativity can create a culture of innovation that empowers employees to
generate new ideas and approaches.
In conclusion, the role of the CEO is critical to the success of a business, and it has a
significant impact on the company's culture. The CEO can set the vision and mission of the
company, lead by example, create a positive workplace culture, and encourage innovation.
By doing so, the CEO can inspire employees, customers, and stakeholders to align with the
company's values and work towards achieving its goals.
RESPONSIBILITIES OF CEO:

- Develop strategic objectives and direction

Carrying the weight of the company on their shoulders, the CEO is responsible for devising
new strategic plans and policies to bring their visions to reality. By setting out clear aims and
objectives, the CEO helps employees and the BoD to better understand upcoming
expectations for business growth, both in the short and long-run.

- Implement proposed plans

CEOs direct and oversee the business’s overall strategic direction, developing high-quality
business strategies and plans that align with both their short-term and long-term objectives.
It’s their duty to communicate their approach across the company so as to ensure that its
operations are working in accordance with its overarching strategy, with the end goal of
maximizing profits , increasing shareholder value, and improving market position.
 - Budgeting and forecasting
To the dismay of many, not all of a CEO’s financial responsibilities can be passed on to the
Chief Financial Officer (CFO). Rather, a yearly budget has to first be set by the CEO to
allocate capital in consideration of factors like net income, cash flow, and the valuation they
wish to achieve. With the help of the CFO, CEOs then consider variables such as industry
fluctuations in calculating potential expenses, revenue, and profitability for the upcoming
year. Only then is the burden lifted, with the CFO managing cash flow and performing fiscal
and financial analysis throughout the year

- Public relations
The public naturally associates the CEO as being the face of the company, making them an
almost obligatory marketing tool. As the business’s primary representative, the CEO is
largely expected to exemplify model behaviour , with their public values and actions, both
good and bad, having a great impact on the reputation of the company. For example, when
Elon Musk smoked marijuana live on The Joe Rogan Experience podcast, it led to a 7% dip in
Tesla’s stock price, due to growing controversy and concern over the CEO’s recent and
rather bizarre behaviour.

- Tracking company performance

An executive understanding of the company’s performance, relative to other competitors, is
a key part of the CEO’s role. Actionable insights can be derived from revenue growth, gross
profit margins, and cumulative sales. These can then be used to shape further key
performance indicators (KPI) to guide necessary adjustments and help the company meeting
its new targets. In addition, monitoring the market – whether that involves potential
acquisitions or significant regulatory developments in the industry – is crucial to helping the
company withstand outside forces and progress towards its long-term goals.

- Establishing working culture

From interns to managers to senior executives, everyone looks up to the CEO to a certain
extent. Creating a healthy working culture means leading by example. By exhibiting the
same working attitudes you expect of others, CEOs will gain respect and serve as better
motivation for employees to reciprocate and do the same for them. A positive working
environment should sit in line with company values, visions, and goals. With a productive
working culture – and a clear set of company values, CEOs are able to better drive
consistent, high levels of performance across the whole company.
ITS IMPACT ON BUSINESS CULTURE:

The impact of a CEO on a company's culture is significant and far-reaching. The CEO is the
top executive responsible for making strategic decisions and leading the organization
towards its goals. The following are some ways in which a CEO can impact a business's
culture:
Sets the tone:
The CEO sets the tone for the company's culture. Their behavior, attitude, and
communication style influence the behavior of employees and shape the company's culture.
If the CEO models a positive, ethical, and inclusive behavior, it can create a culture of trust,
respect, and cooperation. On the other hand, if the CEO behaves in a negative or unethical
manner, it can create a culture of fear, mistrust, and dysfunction.

- Defines the company's values:

The CEO is responsible for defining and communicating the company's values. Values are
the principles and beliefs that guide the behavior of employees and shape the company's
culture. If the CEO establishes and communicates clear values that align with the company's
mission and purpose, it can create a culture of purpose and mission-driven behavior. In
contrast, if the CEO fails to define the values or communicates ambiguous or contradictory
values, it can create a culture of confusion and lack of direction.

- Shapes the hiring and promotion practices:

The CEO plays a critical role in shaping the hiring and promotion practices of the company.
The CEO can influence the selection of new hires and promotions based on the company's
values, culture, and vision. A CEO who values diversity and inclusivity can attract and hire
employees who share the same values, creating a culture of diversity and inclusion.
Conversely, a CEO who prioritizes technical skills over cultural fit can create a culture of
hierarchy and exclusion.

- Fosters innovation:
The CEO can foster a culture of innovation by promoting experimentation, risk-taking, and
creativity. If the CEO encourages employees to generate new ideas and approaches, it can
create a culture of innovation that can help the company stay competitive.

In conclusion, the CEO's impact on a company's culture is significant and multifaceted. The
CEO can set the tone, define the company's values, shape the hiring and promotion
practices, and foster innovation. A positive culture can lead to employee engagement,
productivity, and organizational success, while a negative culture can lead to low morale,
high turnover, and poor performance. Therefore, it is essential for a CEO to be mindful of
their impact on the company's culture and work towards creating a positive and purpose-
driven culture The impact of a CEO on a company's culture is significant and far-reaching.
The CEO is the top executive responsible for making strategic decisions and leading the
organization towards its goals. The following are some ways in which a CEO can impact a
business's culture.

EXAMPLE:
One CEO who has been widely praised for his leadership is Satya Nadella, the CEO of
Microsoft.
Since taking over as CEO in 2014, Nadella has transformed Microsoft into a more innovative
and customer-focused company, shifting its focus from a "Windows-first" strategy to one
that emphasizes cloud computing, AI, and open-source technologies. He has also led a
cultural transformation within the company, fostering a more collaborative and inclusive
work environment.
Under his leadership, Microsoft's stock price has soared, and the company has become one
of the most valuable in the world. Nadella has been recognized for his leadership and vision,
earning accolades such as Fortune's Businessperson of the Year in 2019 and being named to
Time's 100 Most Influential People list in 2018.
Overall, Satya Nadella is widely regarded as an exemplary CEO who has led Microsoft to new
heights while also fostering a culture of innovation and inclusion.
SYNOPSIS:
The CEO of a company has a significant impact on the company's culture, which can affect
the success or failure of the organization. The CEO sets the tone for the company's culture
by modeling positive behavior and communication style, defining the company's values,
shaping the hiring and promotion practices, and fostering innovation. A CEO who prioritizes
a positive and purpose-driven culture can lead to employee engagement, productivity, and
organizational success. In contrast, a CEO who fails to promote a positive culture can create
a culture of fear, mistrust, and dysfunction. Therefore, it is crucial for the CEO to be mindful
of their impact on the company's culture and work towards creating a positive work
environment that aligns with the company's mission and values. The CEO of a company is
responsible for setting the tone and direction of the organization, and one of the most
significant ways they do this is through shaping the company's culture. Culture refers to the
shared values, beliefs, attitudes, and behaviors that characterize an organization, and it
plays a vital role in determining the success or failure of the organization. A positive culture
can lead to high levels of employee engagement, productivity, and innovation, while a
negative culture can lead to low morale, turnover, and decreased performance.

The CEO is the driving force behind the culture of the organization, and their actions and
behavior have a significant impact on shaping the culture. The CEO's communication style,
decision-making, and leadership approach can all contribute to creating a positive or
negative culture. For example, a CEO who communicates openly, honestly, and respectfully
with employees can foster a culture of trust and transparency, while a CEO who
communicates in a closed, secretive, or confrontational manner can create a culture of fear
and mistrust.

The CEO also plays a critical role in defining the company's values and purpose, which are
essential components of the organization's culture. The CEO's vision, mission, and values
guide the organization's direction and help define the culture. A CEO who emphasizes values
such as integrity, innovation, and collaboration can create a culture that prioritizes these
values and fosters a positive work environment.

Another important aspect of culture that the CEO can influence is the hiring and promotion
practices of the organization. The CEO sets the tone for the organization by hiring
employees who share the company's values and embody the desired culture. A CEO who
prioritizes diversity, equity, and inclusion in hiring and promotion practices can create a
more inclusive and supportive culture that values and respects all employees.

Finally, the CEO can foster a culture of innovation by promoting experimentation and risk-
taking, encouraging new ideas and perspectives, and rewarding creative thinking. A culture
of innovation can help the organization stay competitive, adapt to changing market
conditions, and find new ways to grow and succeed.
the CEO of a company has a significant impact on the organization's culture, which can
affect its success or failure. A CEO who prioritizes a positive and purpose-driven culture can
lead to employee engagement, productivity, and organizational success, while a CEO who
fails to promote a positive culture can create a culture of fear, mistrust, and dysfunction.
Therefore, it is crucial for the CEO to be mindful of their impact on the company's culture
and work towards creating a positive work environment that aligns with the company's
mission and values.