PUMA Governance and Ethics
Added on - 21 Apr 2020
PUMAIntroductionEthics are the basic values and morals on the basis of which an entity functions. Ethics are whatgovern the actions of an individual and the same is also true for the organizations. The role ofethics is enhanced in businesses as the adherence of ethics results in additional advantage for acompany (Smith, 2008). An ethical company is more likely to be successful in comparison to anunethical company, which would be constantly faced with issues from different stakeholders,particularly government, customers and employees. As a result of this, the work of theorganizations is conducted by following the leading ethical theories, to the line of utilitarianism,virtue ethics, and deontology (Chonko, 2012).Governance is another crucial component which has to be kept into consideration when thebusiness of an entity is undertaken. Governance, in its literal terms, refers to the process wherebydecisions are made on the basis of expectations, management and proper systems (Grindle,2014). A concept stemmed from governance is corporate governance which relates to theprocesses, rules and practices which are used for directing and controlling the company. So, inessence, corporate governance is the manner of governing the corporation in terms of the impactof its actions over the different stakeholders (Fukuyama, 2013).In the following parts, an attempt has been made to cover these concepts in reference to thepractices being followed by Puma. In doing so, the organizational culture of Puma would bediscussed particularly in context of its objectives related to ethics and governance. Thediscussion would then move on to the social responsible activities of the company, followed by
PUMAthe ethical perspective of the company. Before concluding the assignment, the justificationwould be given on the focus of the company on its triple bottom line.Organizational CultureOrganisational culture refers to the behaviours and the values, which make a contributiontowards the unique social and psychological environment of any company or business entity. It isbased on the expectations, values, philosophies and experiences of the organization, which itupholds and is usually express in terms of interactions with outside world, expression of self-image, internal working and future expectations (Huhtala, Feldt, Hyvönen and Mauno, 2013).Needle (2004) has highlighted that organizational culture shows the collective beliefs, principlesand values of the members of the organizational and is a product of factors including the historyof the organization, its people, market, product, type, technology, management style, kind ofemployees, strategy and the like. Rosauer (2013) stated that it was an emergence, which was acomplex and an incalculable state, which results from mixing a handful of simple ingredients. Inview of Ravasi and Schultz (2006), it was a set of shared assumptions which act as a guidance towhat takes place in a company through defining proper behaviour for different situations.The organizational culture at Puma is such which promotes creativity, as well as, new ideaswhich help Puma being placed before the other brands. The company focuses on personalcommitment, passion and responsibility. In the culture of the company, diversity, individualityand internationality are deemed as key components and this helps the company in producingunique teams which help it in making certain that the company is successful and is aligned withthe tag line of the company, i.e., forever fast (Puma, 2017a). In doing so, the company recruitsand promotes talent from across the globe. The company also emphasis on the local knowledge
PUMAtowards the success of the company and so, it works on empowering the people for allowingthem to make the decisions. The company has a developed structure which allows the localmanagers in getting real time responsibility and also in making certain that the company providestailored results based on the demand of the market. And in doing so, the standards have to bemaintained in addition to the management of risks across the group (Puma Energy, 2017a).The corporate governance at Puma as an entire group is deemed as a major corporate policy. Interms of the theme of this discussion, the objectives of the company for its governance aspectsresolve around three points. First, the company aims to support performance driven businessacross the globe where the focus is on growth. Second, the company looks forward atmaximising the operational flexibility for promoting an approach which is light touched basedfor central management for empowering the individuals at local levels. And lastly, companyaims to work towards promoting accountability and transparency in every aspect of theoperations of the company (Puma Energy, 2017b).The company recognizes that it has to follow different standards and regulations cross the globe.And irrespective of these regulatory compliances, the company deems it crucial for upholdingethical standards and operate as per the applicable laws. Hence, for the company, compliance is acrucial factor which translates into the success of the company. There are simple objectives withregards to the ethical conduct. And these are summarized in the Code of Ethics drawn by thecompany. The goal is for the employees, suppliers and customers, on which the basic frameworkof this code is applicable, are expected to read these codes and act on them properly and includedin these are areas like conflicts of interests and anti-corruption. This is because the companyrecognizes that attaining its goals is only possible when everyone plays the game by rules (Puma,2014).