Virtue Matrix Analysis of Strategic and Structural Actions

This report analyzes the Virtue Matrix, a framework for evaluating a company's commitment to environmental, social, and shareholder interests. It explores strategic actions, where businesses aim to increase shareholder value through innovative and ethical practices, as well as structural actions, where companies prioritize societal benefits even if they impact immediate profits. The report examines examples of organizations operating within these quadrants of the Virtue Matrix, providing detailed insights into their decision-making processes and alignment with the framework's principles. The report is based on the provided assignment brief which requires to apply the Virtue Matrix to answer the questions related to the strategic and structural actions.

Running head: VIRTUE MATRIX (VM) 1
Virtue Matrix (VM):
Name
Institutional Affiliation

VIRTUE MATRIX (VM) 2
Virtue Matrix (VM):
The VM is a service given to corporations which assist balance obligations to
environment, society and shareholders. It gives a framework to evaluate a given level of
attention to each of these and urges a business to take calculated risk as well as
innovative to simultaneously enrich shareholders and society.
The Virtue Matrix
The Frontier
STRATEGIC
Strategic Frontier (Upper Left) – activities
which might add value to shareholders by
generating positive responses from legal
authorities or customers. Actions are often
risky, but are by choice and part of profit-
making strategy which tends to shift to
Civil Foundation. Actions here are
usually risky, but are by choice and are part
of the profit making strategy.
Example: An organization which has
decided to increase the prices of its
products but at same amount or more
(Queen, 2015). This generates more wealth
and profit. An organization who is selling
more units or increasing fixed cost
STRUCTURAL
Structural Frontier (Upper Right) – These
are intrinsic actions that are contradictory
to interest of shareholders and significantly
benefit society and create structural barrier
to a firm.
Example: An organization that has decided
to give not to charge higher prices on its
products despite the advice by the
shareholders. Another example is an
organization that has decided to act
ethically by not engaging in an ethical
investment which would otherwise
generate more profits (Laszlo & Cescau,
2017).

VIRTUE MATRIX (VM) 3
utilization.
CHOICE
Lower left quadrant are actions by choice
according to norms and rules. It is porous
and some actions can travel to compliance
COMPLIANCE
Lower Right quadrant – Responsible
behavior dictated by law compliance,
responsible conduct mandated by law or
regulation. It is also porous.
Civil Foundation

VIRTUE MATRIX (VM) 4
References
Laszlo, C., & Cescau, P. (2017). Sustainable value: How the world's leading companies
are doing well by doing good. Routledge, 12(1), 12-67.
Queen, P. E. (2015). Enlightened shareholder maximization: is this strategy
achievable?. Journal of Business Ethics, 127(3), 683-694.