Kimberly-Clark Company

Abstract

Kimberly-Clark Company was established in Neenah, Wisconsin in 1872 in the form of a partnership of four individuals: John A. Kimberly, Charles B. Clark, Frank C. Shattuck, and Havilah Babcock (cousin of Kimberly). It has seen several phases of success and this has been mainly due to the strong leadership that has been portrayed by its leaders. This paper explores leadership skills at Kimberly-Clark Company and puts into consideration the value of a leader. The research has concluded that the readiness and potency to admit liability for the outcomes of our deeds and a dedication is required if success has to be maintained. The message given to us by leaders pertains to our personality, our present and our future, the way we live now and the way we could spend a better life. Kimberly-Clark Company does mainly stress the “responsibility principle” as an essential feature if it has to remain valuable in the present business community.

 

 

 

 

 

 

 

 

 

 

 

Leadership Skills at Kimberly & Clark Company

Introduction

Kimberly & Clark Company is an organization that continuously stresses on superior quality, service and honesty. It is a group of individuals who get satisfaction by going beyond the customers’, colleagues and stockholders’ anticipations. As we get closer towards a new era, the companies target is to be known as one of the few corporations to be recognized as the “best in the world” when talked about human resource, goods and payouts to shareholders. The objective of the company is to continue using Kimberly-Clark’s four biggest strengths and core competencies together: advanced products developed with the help of ingenuity in its expertise regarding fibers, nonwovens and absorbency; continuing trademarks renowned globally; ever-increasing customer and foreign product contracts; and an international team of highly skillful and enthusiastic employees.

Objectives

  1. The impact of influence (leadership) versus performance (management) at Misons Industries LTD (Company).
  2. How different styles of leadership affect the attainment of Misons goals
  3. Transactional versus Transformational leadership style at Misons
  4. The important role of leaders on Misons

 

Organization Leadership

Nowadays it is vital for leaders to motivate their subordinates by narrating a persuasive and ally rich instances and stories, and it is equal crucial that they should also align themselves to those instances and stories. In contemporary business environment envisioning such dedication seems very farfetched due to that fact that individuals belonging to business environment are not used to integrating such values in themselves (Graen and William, 1978). Thus, a majority of political leaders are unsuccessful in aligning themselves to those instances and stories which they mention in their speeches. Furthermore, recently leaders in business environment have been criticized after news associated to their bad conduct and scandals have emerged. Chief Executive Officers in contemporary organizations are deemed as role models for values in every single society (Warren, Weitzel, and Green 1990).

  1. 1.    The impact of influence (leadership) versus performance (management) at Misons Industries LTD (Company).

Although every organization will hire its employees whom they hope are people of high integrity, they do still need to provide good leadership in order to bring out the best of the employees. There are different theories which have been designed to help align the performance of the employees to the organizations objectives. Leadership skills are bound to influence performance in any organization. Good leadership skills have been shown to result in most of the time to good performance which also translates to high returns. Different leadership styles have affected Misons Industries differently. In the year 2004, on the basis of a sequential instances associated to an  immoral actions performed by the personnel of Citigroup in Japan; new Chief Executive Officer, Chuck Prince dismissed numerous personnel, publicly acknowledged it is vital for leaders to motivate their subordinates by narrating a persuasive and ally rich instances and stories, and it is equally crucial that they should also align themselves to those instances and stories. His message was not only acclaimed in Japan but also gained support from the top tier officials of Citigroup in instigating an unprecedented practice of “shared responsibility” which emphasized that every personnel will take ownership of the ideas and decisions which can influence the organizations functioning (Kirkpatrick and Edwin, 1991).

After it joined hands with Scott Paper Co in 1995, Kimberly-Clark Corporation has strengthened its status as the second largest company in the paper products industry and looks to attain the top spot over Procter & Gamble. The collective performance of Kimberly-Clark and Scott has formed a colossus with production in over 33 countries; the organization now trades in around 150 countries. Apart from its strong consumer paper goods operations which comprises of products such as tissues and feminine-, child-, and incontinence-care products leading the market, Kimberly-Clark also remains firm in the pulp and newsprint functions (the basis for company’s foundation) and an airline services and air shipping entity working under Midwest Express Airlines.

The first paper mill for the company was established in Wisconsin. In the beginning, the newsprint was made up of linen and cotton rags. Before the company become six years old, it had spread its wings by buying a large portion in the close by Atlas paper mill, which specialized in transforming pulpwood into manila packaging paper. The business officially became a corporation in 1880 as Kimberly & Clark Company with John Kimberly elected as president. In 1889, the corporation built a sizeable pulp and paper-manufacturing factory on the Fox River. The society that was raised near that factory was called Kimberly in admiration of John Kimberly.

Included in the very first products was the paper utilized for rotogravure, a process used for the reproduction of photographs with a rotary press. In 1914, explorers experimenting with bagasse, a pulp derivative of processed sugar cane created creped cellulose wadding, or commonly called tissue. During the first Great War, this product (called cellucotton) was helpful in treating injuries instead of the insufficient surgical cotton. In the meantime, female nurses realized that cellucotton could be used as throwaway feminine napkin. The company immediately acknowledged the business opportunity and by 1920, introduced Kotex feminine napkin.

In 1924 the corporation had launched Kleenex, a different disposable tissue item. Kleenex would go onto become a substitute for face towels which are used to clean off cold cream. On the other hand, an investigation illustrated that the customer chose to use Kleenex as a throwaway handkerchief leading the company to shift its promotion theme completely. Country-wide commercials were setup to campaign for Kleenex 1930 due to which turnover doubled within a short period. Tricky advertisement for products such as feminine napkins led to Kimberly & Clark opening a separate entity called International Cellucotton Products which would deal with the production of Kotex and Kleenex.

 

2. How different styles of leadership affect the attainment of Misons goals

The attainment of any organizations goals is directly influenced by the type of leadership style employed. Misons has always had leaders who are devoted towards showing the rest of the employees the best way to achieve the organization goals. The great leadership skills portrayed by the top management at Misons have transferred on even to the lower managers and this has ensured that the company continues to enjoy much success. It is on this regards that the company has been able to experience a lot of growth since it was started. The following section looks at how the lower management has been employed in establishing new branches which have kept the company growing and constantly making profit.

Expansion from 1920s to 1960s

A power plant and Canadian pulp mill was constructed in 1920s at Kapuskasing, Ontario. It was named Spruce Fall Power and Paper Company. For the purpose of marketing the cellucotton products in global market in 1925 a company was formed which was called Canadian Cellucotton Products Limited. To expand the pulping capacity, Kimberly and Clark with partnership with New York Times Company, installed a newsprint mill to the existing Spruce Fall in the next year.

Spruce Fall Power and Paper Company was reincorporated and reorganized in 1928 as Kimberly-Clark Corporation and in the same year, when John Kimberly dies, shares of the company were being floated in both Chicago as well as New York stack exchanges. At the time of John Kimbely death he was 90 year old and he was still a present of the company. In 1930s the main focus of Kimberly-Clark was on marketing the new products. In the time of World War II, majority of the company’s resources were devoted towards war efforts. In addition to this, company contracted the creator of “little lulu” the cartoon strip, Margaret Buell, for the purpose of promotion of Kleenex. Both Little Lulu and Buell continued promoting Kleenex into 1960’s.

To restore the demand of consumer product after the World War, the company started an expansion program. In 1946 different facilities were established or acquired in North Carolina, Memphis, Balfour and Tennessee and in late 1950’s in California, Fullerton Connecticut and New Milford. In 1948 at Terrace Bay, Ontario pulp production was launched and in 1949 the firm with the help of newspaper publishers and investor started Coosa River Newsprint Company in Coosa Pines, Alabama. Munising Paper Company was acquired by Kimberly-Clark in 1952, and in 1956 Neenah Paper Company, in 1957 Perer J. Scheweitzer, Inc – which had different mill both in US and France and in 1959 the American Envelope Company. Both Cellucotton Products Company (in 1955) and Coosa River Newsprint Company (in 1962) merged with the parent company.

During 1960’s the demand for tampon, idea of Tampax, increased among women which deceased the market share of Kotex. Kimberly-Clark started investing in new products and in 1968 they introduced disposable diapers which also have tape closures under the brand name of Kimbies. Despite of Pampers of Procter & Gamble the sales were high. In mid 1970’s, Kimbies was retired for the market due to its lack of innovations and improvement. Other reasons include leakage problems and continuous poor sales. Kimberly-Clark were forced to re-evaluate offset between the lumber and paper division and consumer products due to increasing competition in the industry of infant-care products.

Restructuring in 1970’s

In 1971, Darwin E. Smith was elected as a president of the company and took Procter & Gamble as a challenge. He thought that they have to cut down their coated-paper business to properly compete in consumer market. For that reason, Smith started changing not only by selling or closing six paper mills but also selling 300,000 acres of Northern California Land. The cash that he got was more than $50million majority of the land sale. After this he started an aggressing research by hiring skilled professionals and Research and Development taken that were previously working of the competitors. The advertising budget had substantially increased and there were also plans related to construction of new production facilities.

For Smith’s growth strategy, marketing was vital because of the commitment emphasized by Kimberly-Clark. Research and development allowed the company to shift from traditional base of cellulose fiber-forming technologies to contemporary lightweight synthetic fabrics utilization. Huggies introduced hourglass shaped premium-priced diapers in 1978 which used re-fastenable tapes.  Huggies till 1984 had occupied 50% market share in the high quality disposable diaper market. Popularity of Huggies was a big shock to Kimberly-Clark who had to increase the production in order to meet the demand of the consumers.

Diversification in the 1980s

Kimberly-Clark’s expansion of consumer products also included feminine care products as well as facial tissues. It was estimated that the brand Kleenex had captured about 50% of the tissue market during 1984. Avert, a virucidal chemically treated tissue, was test-marketed in 1984 but failed to gain popularity because of the high price and limited usage of the product. Avert was aimed at the companies and health-care institutions as means to lower the employee absenteeism but did not do so well because of which Kimberly-Clark decided in 1987 not to do mass-marketing for the product.

Tampon sales dropped because of the scare of 1980 toxic shock syndrome. Therefore, in the early 1980s, Kimberly-Clark began aggressive television marketing campaign for incontinence products called Depend. Incontinence products during that period were unmentionable as 60 years earlier feminine care products were. The marketing promotion allowed Depend to gain profitable market share in the incontinence market which became the best-selling retail brand in United States. Kimberly-Clark acquired Spenco Medical Corporation in Waco, Texas to broaden its base in the health care and therapeutic products during the same year (Graeff, 1983).

25% of the Kimberly-Clark sales came from paper, pulp and newsprint businesses although its primary operations – personal care-products – were growing. Kimberly-Clark in 1984 decided to diversify its operations further by changing its regular and scheduled service of air-shuttle in a regional commercial airline.
The company bought six seat planes in 1948 for its venture in the aviation business in order to shuttle executives between the Kimberly-Clark factories situated around the world and company headquarters situated in Wisconsin.

 Smith, executive vice-president for finance, suggested in 1969 that the six planes air travel be changed in to a profit center from a cost center by offering maintenance services for corporate aircrafts. The subsidiary was named K-C Aviation, remodeled three DC-9s as well as started flight services in June 1984 between Milwaukee and Appleton, Wisconsin; Dallas, Texas; and Boston. The new airline named Midwest Express had a rocky start because of the crash in 1985 in Milwaukee, with huge operating losses as planes were flying 80% empty. However, till 1989, the operation was going smooth with planes flying at a capacity of 66%; expansion of $120 million was made for increasing the destinations to 15 cities and adding 11 DC-9s to the airline fleet.

In 1985, Smith relocated the headquarters of Kimberly-Clark from Wisconsin to Texas because of the reason that it was not a good climate in Wisconsin to do business. Just before relocation, Procter & Gamble had sued Kimberly-Clark for infringing unlawfully on the company’s patented waistband material of its disposable diaper. In comparison to Procter & Gamble’s diaper product, Pampers, Huggies had captured 31% of the market share. A federal grand jury gave a judgment that was not in favor of Procter & Gamble, almost two years later than the commence of legal action. In next ten years, the introduction of exceedingly admired Huggies Pull-Ups disposable training pants in 1989 took Kimberly-Clark to a newer level of accomplishments in its long-term diaper competition with Procter & Gamble. The market share of Procter & Gamble was contracted because of this item expansion by Kimberly-Clark, plus pushed Huggies to the in the disposable diaper market’s top position.

1990s and Beyond


                Kimberly-Clark started a diversification plan at the end of 1980s, and for this time, it was focused on geography, having a prime focus on Europe–even though it was in the beginning or mid-1990s when the corporation\’s major global expansion had to come. In 1988, Smith started to expand Kimberly-Clark\’s existence in Europe in order to maintain a stable growth of the corporation. The corporation spent almost $1 billion in European plants, from 1988 to 1992. The corporation’s enormous investments (totaling $700 million in 1993 only) and reorganization expenses together with them started to influence its proceeds, even though its profits from Europe were progressively increasing. The net profit made in 1991 was $435.2 million which was reduced to $150.1 million in 1992 with a small improvement in 1993 coming up with $231 million.

In the meantime, after selling Spruce Falls Power and Paper in 1991, the corporation decreased its commodity papers operation even more. Smith, the architect of Kimberly-Clark\’s reformation and diversification endeavors, working from 1972, retired as chairman in the same year and Wayne R. Sanders succeeded him. In the development of Huggies Pull-Ups, Wayne R. Sanders, the new chairman, had an enormous role in leading this perilous attempt and before that, he had worked hard in coming up to the top. Huggies Ultra Trim diapers were also introduced in 1992.

It seemed as if the corporation will get rid of its commodity papers roots itself fully from itself under Sanders\’s headship. At the end of 1994, Kimberly-Clark proclaimed that it will be exploring the sales of its North American pulp and newsprint functions. But, in the same year, the corporation made a decision of not selling since pulp and newsprint rates sprang up, consequently, it was not a cost-effective step to take. At the middle of 1995, Kimberly-Clark stripped its cigarette papers trade by putting itself into a corporation named as Schweitzer-Maudit International Inc. following the concerns of stakeholders regarding possible expenses of liability court cases against tobacco, which was then commencing to increase potency , who then began a proxy fight in 1994.

The amalgamation of Kimberly-Clark with the Scott Paper Co in 1995 was an agreement designed by Sanders that was to escort the company into a new age. As Scott had the top most rank in tissue business in Europe, the agreement was the reasonable culmination of Kimberly-Clark\’s global growth. A dismissal of 6,000 employees and selling of numerous plants came out as a consequence of 1995 accusation of $1.4 billion for Kimberly-Clark to join the amalgamation which was a consequence of the $9.4 agreement. The Scotties facial tissue function was to be sold-out by Kimberly-Clark, two of four plants in the United States, and its Baby Fresh, Wash-a-Bye Baby, and Kid Fresh brands (which was bought by Procter & Gamble), in order to clear antitrust muster. The Kimberly-Clark\’s efforts to amalgamate Scott Paper functions in it, made the end of 1990s a duration of changeover. The new-established global clout gave an expectation to the corporation, though; for coming years, it would turn it into a further daunting competitor of the leader in the business, Procter & Gamble.

3. Transactional versus Transformational leadership style

Leadership can either be transactional or transformation. It has been noted that leaders who employ transactional leadership style clearly understand the link between the effort attributed to any task and the rewards gained (House and Ram, 1997). Transformational leaders on the other hand are known to arouse positive emotions in their followers and as a result motivate them to act even better and achieve the best possible results. In contemporary situation of instability around the globe; it has been witnessed that a greater number of managers, executives, and business personnel belonging to different levels of functioning are conscious about values and  and are inclined towards instigating a value creation process by dedicating their efforts and time. Thus, this wider perception of leadership enables these individuals in clarifying and ascertaining their personal values and  (Bass et al, 2003).

Kimberly-Clark leaders  have mainly employed transactional leadership style and this has greatly motivated the employees.  A list has been presented below which offers a structure that has been employed by Kimberly-Clark leaders to enhance transactional leadership.  It has been formulated by observing as well as conversing with professionals and students for twenty-five continuous years along with perusal of business literature. The list has been formulated from the viewpoint of a leader; they provide a thorough comprehension regarding leadership which is very much intricate and transcends the general idea of “good values and character” (Graeff, 1983). Kimberly-Clark leaders have shown the following characteristics which have enabled the company to continue excelling. The following have enabled this company to maintain top leadership skills.

1. Focus on organizational success rather than on personal ego.

Leaders who are ally conscious also have the comprehension of their worth amidst the wider spectrum of stakeholders and related constituents. Thus, the notion does not entirely focuses on the leader alone, it encompasses much more than that by focusing on aims and objectives of the overall organization. These ally responsible leaders also comprehend that in core essence values lies in the success of organization’s personnel (Bass et al, 2003).

In the year 1998, former Chief Executive Officer and Chairman of PepsiCo, Roger Enrico demonstrated his devotedness towards the firm’s personnel by electing to give up all of his income and keeping just $1 for himself. He requested PepsiCo that this benevolent act of his should result in a contribution of $1 million in the scholarship fund by the firm so as to buttress the personnel in bearing the educational expenses of their children (House and Ram, 1997).

In an analogous way, JetBlue’s founders initiated to provide their incomes to funds created for personnel financial assistance. Presently, their whole income goes to JetBlue Crewmember Catastrophic Plan fund, so as to facilitate the personnel in coping up with those crises and catastrophes which are not entailed in the insurance policies.  The purpose of sharing these instances is to delineate that ally conscious leaders comprehend the magnitude of those factors which are liable to influence personnel loyalty and take apposite measures accordingly which will ultimately enhance the firm’s success (Warren et al 1990).

2. Find the best people and develop them.

This particular function has been entailed in diverse models which are associated to the subject matter of leadership. ally conscious leaders are concerned in uncovering and selecting the best employees because they deem it as a crucial necessity which will certainly facilitate the selected employee in not only enhancing his expertise but will also enable him to support other employees as well (Avolio, 1999). Searching the best employees entails the importance of character and  as judgment tools in the selection phase (Graen and William, 1978). It has been told to us by various CEOs that evaluating the honesty and reliability of someone are way more vital than assessing the know-how and abilities they have. Still, in numerous firms, the employees are appointed on the basis of skills with small considerations of integrity issues (Graeff, 1983).

3. Create a living conversation about values and the creation of value for stakeholders.

Possessing a laminated visa card in the pocket is thought to be a full and final solution of “financial problem” by many business administrators (Bass, 1990). Enron and various other companies in trouble already had these solutions in their agenda (Bass et al, 2003). But what they did not possess was  a general dialogue and communications between all the levels of business in which having discussions and arguments about the fundamentals of value construction, opinions of stakeholders and communal expectations was are normal practice (Atkins and Wood, 2000). There is an erroneous belief that morals “squishy and soft” ingredient of management. It couldn’t be any more false than this (Greenberg and Robert, 2000).

In such organizations where principles given importance and where they are discussed , the workers there actually account themselves and others around them about whether they are acting upon values and  or not. And, they anticipate the managers of organization to observe the same practices (Warren et al 580). Actually doing such discussions implies that people should have awareness of options but they should prefer every time to settle with the group only because it inspires them and has an importance for them. If one wants to direct morally, a very strong will is needed to actually make these discussions and communications happen (House and Ram, 1997).

The chronicle of the former CEO of Johnson and Johnson Jim Burke and the Tylenol product (1980s) is well known, in which, regardless of financial costs and loss, all the possibly fiddled products were pulled off the market and thus they kept together the trust of public (Graen and William, 1978). The less famous backdrop of this tale is vital to understand the end result. Johnson & Johnson had conducted a bunch of meetings internationally known as “challenge meetings” some time prior to the Tylenol crisis in which the administrators and managers argued about the “Credo”, a description of their aims and values of what and who they really want to be, as a firm (Fiedler 1967). This chat about morals at Johnson & Johnson made the choices of Jim Burke easier and vivid than they could ever have been about managing the circumstances (House 1971).

4. Create mechanisms of dissent.

Many executives actually don’t comprehend their power merely by high value of the positions they are on. Stanley Milgram a famous psychologists had depicted a long time ago that even when there is no accountability for defiance still people mostly comply with what they think to be as legitimate authorities (Luthans, 2005). To get past the “Authority Trap” what is vital is to create a peculiar and well formed process for the workers to contradict if they think that some market, process or region is not working properly (Bass et al, 2003). This should become a very important part of the customs of organization and not merely a document of compliance agenda. Some corporations have tried to provide the telephone and e-mail process from unknown identification and numbers to know the opinions of workers without the interference of administration which is the real barrier in huge organizations. Many managers have also tried “skip level” conferences in which they talk with the people in various levels of cooperation to have a more practical view (Kirkpatrick and Edwin, 1991).

Famed “workout” procedure of General Electric—it is where the employees meet to come to a decision about how to make it a better company and fix the troubles being faced—was a method for the workers of front line to contradict the authorities and management already present (Podsakoff, 1993). All these developments showed the way to healthier judgments, more focused employees, and augmented probability of evading the mistakes causing damage (Warren et al 1990).

A company which focuses sincerely on their reason of existence and their values , always have some system available for pushing back to keep away from  decaying of the company’s values (Astin, Parrott, Korn, and Sax, 1997). If there would have been some resourceful customs for employees to utter about their disappointments with the procedures and actions of others in a company they would have indeed, prevented from some of the very recent corporate disgrace (Steers, Lyman and Gregory, 1996). This system of dissent are developed according to the leadership style followed in a company or by its culture but this comes under the responsibility of a good leader to craft values in today’s corporate world (Bass et al, 2003).

5. Take a charitable understanding of others’ values.

It can become easy for leaders to recognize that why different alternatives are picked by different people but they still have a strong hold on recognizing what people do and why. Nelson Mandela; after spending twenty-seven years in South African prison, still able to recognize good things in jailers. Nelson also protested against a ferocious and an inhuman jailor who later got transferred from the Robins Island and before he left, the jailor came back to Mandela and stated “I just want to wish you people good luck.”Mandela took this statement as an indication that every person possesses some good in them even after trapped in immoral systems. Mandela took it as his accountability to recognize good among people and try to bring it out. Once a CEO of a company stated that we should not take leadership a mechanism for stopping people from doing wrong instead we should use it to facilitate and appreciate people in doing right (Graeff, 1983).

6. Make tough calls while being imaginative.

It is a duty of leaders to take difficult unavoidable everyday decisions from the reorientation to creating company’s strategies and also creating value schemes which help in making decision for individual employee regarding his working in an organization (Arvey, 1998). leaders always take challenges by making difficult decisions they never get scared in attempting them and never avoid them by making excuses (Stogdill 1948). The leaders always come together to do the right thing for their followers and for the organization (Bass et al, 2003). leaders are just being enjoyable and loving, this idea contradict with reality. Moral mind’s eye is the most significant task done by leaders often (Stogdill, Ralph and Bernard, 1974). The German Bank was originated by this moral mind’s eye by mohammad yunus. He implemented the same systematize banking practice of lending money to people with collateral against it and it laid the industry of micro lending to poor as he turned it on his head (Warren et al 1990).

German bank has a leading loan reimbursement percentage in the banking industry and it initiated lending programs for poor women of Bangladesh to start their own small businesses and their program helped millions of women to stand on their own feet and able to feed themselves and just because of this purpose the slogan of German bank was “poverty belongs to museum” (Kirkpatrick and Edwin, 1991). In organizations leadership exists mainly in the people of higher positions like CEO and board levels. Few years back, a new firm inclusive strict obligation made by the CEO of DuPont in order to lessen factory emanations. Plant engineers insisted CEO that decreasing the emissions of the company cannot be reduced at any cost so the CEO and president of the company decided to shut down that plant which make many people lost their jobs (Graeff, 1983). CEO was notified about the possible solutions regarding the requirements by the plant engineers weeks later. They may be cost saving too. although we are unaware of the hard work that was done by the engineers (whose name are not disclosed), we can definitely view the outcomes with respect to imagination and leadership (Graen and William, 1978).

7. Know the limits of the values and principles they live.

Each and every value has its boundaries and in a given situation it may work sometime and it may not work too. The limitation of a certain value is very much related to the audience and the environment in which these values are practiced (Kinicki and Kreitner, 2006). leaders can provide us with solid evidences and reason about their chosen action and they have an exact sense about the limits of values that they live in. Majority of the problems that a manger faces are due to cultural differences and not understanding the limitations of the values (House 1971).

One of the most common examples is of not understanding the limitation of “putting the shareholders first.” Keeping the prices of the stock high artificially and not provided not only to customer but also to the stakeholders the long lasting value which creates fanaticism instead of providing good and clear judgment.  is something which is not a different thing but is attached to us and is part of an individual’s life. No one can substitute practical sense, judgment, and sound advice which have influence on our actions (House and Ram, 1997).

  1. The important role of leaders on Misons

Leaders motivate, they motivate and they generally lead the way that is to be followed by the employees. If there happens to a shortfall in the type of leadership that is employed by any organization, even the results of that company will also be directly affected. It has therefore been generally accepted that leadership in any organization is bound to greatly influence the success or failure of any organization. (Bass et al, 2003). It is considered that responsibility of providing  moral judgment is on the shoulders of the leaders. But is important to understand here that, it is easy to coat an action in terms of leadership style and consider it to be right (Vroom and Yetton, 32). There are numerous views about transactional leadership and one of them is that, it is inviolable and universally accepted principles that are not to be violated. There is a need for hard work to understand the implementation of these values and principles in today global complex business environment (Graeff, 1983).

The leader must understand and act in terms of corporate strategy rather than taking business leadership separately. It is linking basic raison d’être of a corporation with the methods thought which value is created in a society. It is a fact that a leader will never give an excuse of it’s just a business. Regardless of extreme opposition from various groups, Lee Scott the CEO of Wal-Mart got an approval in the year 2004 to establish a new store in west side Chicago with partnering with the black community leaders (House 1971). The basic reason was to fulfill the need of employment and jobs of the community and that side of the town. It was due to the support of community that helped Wal-Mart in winning the approval form the City Council. Wal-Mart also encourages the subcontractors to make their facility locally and hire majority of the employees for the local residence (Bass et al, 2003).

There is often difference between values, individual, principles and cultures which results in conflicts. It is important for a leader to have a humanistic view rather than going for righteousness (Antonakis, Avolio and Sivasubramaniam, 2003). In addition to this it is also important to have an open mind to understand and learn and to have conversations and discussion with those which belongs to a different culture and have a different view points. It provides us with realization of the importance of improvement there new ideas (Warren et al 1990).

Guiding people to understand their expectations and ideas, building worth for the shareholders, as well as performing these errands with the concentration and significance that “” defines, all of these things are concerned to leadership that is focused on “raising the bar” (House and Ram, 1997). The things lacking in our present leaders is they do not give room for errors, for hilarity, as well as kindness, all that was said (Wren, 1994). By the character in their daily lives, leaders, who are common people, set examples of taking the world to a higher level. The questions like what is our individuality, what are we plus what can we be, how to spend our life better and the way we may make it improved are some of the important questions that leaders should help their employees to find an answer to (Graen and William, 1978).

Conclusion

       Kimberly-Clark is honored to know several decision-makers that they can categorize as transactional leaders. A thoughtful and unfathomable knowledge of standards, principles, and personality at the heart of headship, these all things are commonly present in those decision-makers. Improving others as well as allowing them to chase their own expectations and ideas, these are all considered as work by them. They are capable of achieving tasks in complex cultures and associations. However, their connection with the admirers, the talents and procedures they make use of in directing them, their study of the frameworks, and their own logic of personality, these are all permeated by the core.

The leaders must shoulder responsibility and think about the consequences of their activities on employees, suppliers, customers, societies and others who are concerned. The “responsibility principle” would be pointless in a situation where the business was only looking after the interest of the shareholders.

To improve on leadership at Kimberly-Clark, the following questions have to be asked and answered:

(1) Which principles and values are important to me?

(2) Are these values reflected by the way my time is spent?

(3) What opinion is carried by my peers and subordinates about my values?

(4) What methods and procedures have been instituted by me to ensure that my subordinates are able to challenge my authority?

(5) Under what circumstances would I be prepared to give up my job due to reasons?

(6) What do I intend to achieve with my leadership?

(7) What should be the opinion of people on my leadership qualities when I leave the organization?

(8) Is it possible for me to preach my close relatives about my leadership style and give examples from my daily work practices for them to become leaders?

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