Please reflect on your comprehension of financial management and knowledge gaine

Question

Please reflect on your comprehension of financial management and knowledge gained from the media concerning financial real world activities and events occurring in the US.

-What actions and behaviors of leaders and managers in corporations could influence the market value and price of stocks?

-In reflecting on the creation of the Sarbanes-Oxley Act to increase accountability through new mandatory standards, what are some possible explanations as to why unethical conduct occurs in financial management?

-What are some activities corporations can do to decrease overall unethical practices and promote good business ethics in the organization?

Explanation / Answer

The actions and behaviors of leaders and managers in corporations that could influence the market value and price of stocks are:

Leaders act as if it's not their job to address entrenched habits.

Most leaders put a great deal of time into crafting strategy, selecting winning products, and engaging with analysts, shareholders, and major customers. But few realize the success or failure of their grand schemes lies in influencing the behavior of the hundreds or thousands of people who will have to execute the big ideas—their employees.

By contrast, the most influential leaders—the 5% who succeed consistently at influencing profound and essential behavior change—spend as much as half of their time thinking about and actively influencing the behaviors they know will lead to top performance. The 95% who dither and fail tend to delegate what they dismiss as "change management" to others, most often leaders in human resources—who often lack the credibility to influence real change. The average leader spends little, if any, of his or her time on active efforts to create behavior change. Consequently, nothing changes.

Leaders lack a theory of influence.

Very few leaders can even answer the question, "How do you change the behavior of a large group of people?" And yet, this is what they're ultimately paid to do. It isn't just about making a decision; it's about getting people aligned to execute the decision. And this means influence. Imagine discovering just as the anesthesia is taking effect that your heart surgeon—the one hovering over your chest with a scalpel—is working off a "gut hunch" about how to conduct a bypass. Unless leaders become articulate about a repeatable and effective way of influencing profound, rapid, and sustainable behavior change—they'll continue to rack up predictably high failure rates at leading change.

Leaders confuse talking with influencing.

Many leaders think influence consists of little more than talking people into doing things. It's no wonder most influence efforts start with PowerPoint presentations. But profound, persistent, and overwhelming problems demand more than verbal persuasion. Anyone who's ever tried to talk a smoker into quitting knows there's a lot more to behavior change than words.

Leaders make the same mistake when they publish platitudes in the form of Mission and Values statements, give a few speeches on why these values are crucial, and then assume their job is done

Leaders believe in silver bullets.

When leaders actually attempt to influence new behavior, it's common for them to look for quick fixes—to fall into the trap of thinking that deeply ingrained bad habits can be changed with a single technique. The failure mode is to rely on any single approach.

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