Question: TASK 1 Effective Leadership Mark Constantine and a small group of colleagues founded Lush in 1 9 9 5 , selling natural hair and beauty

TASK 1 Effective Leadership Mark Constantine and a small group of colleagues founded Lush in 1995, selling natural hair and beauty products at a shop in the British seaside town of Poole. Constantine had started out as a hairdresser, then set up a company manufacturing hair care products that became the biggest supplier to the ethical brand The Body Shop. He subsequently sold his business to The Body Shop in order to found a mail order company Cosmetics-To-Go with his wife Mo. This venture failed, but its successor Lush has been a great success. In the year to June 2016, the company made sales of 723m and pretax profits of 43m. The company had 928 stores in 26 countries, as well as extensive online sales. It remains privately owned by the Constantines and close associates. The Constantines have an unconventional approach to leadership and ethics. Their personal values are fundamental to the way they run the company and the values that the brand represents. A section of their website sets out the company's approach to issues ranging from animal testing to tax and air travel. They are not frightened of controversy, and past campaigns have included opposition to fox hunting and fracking, as well as support for refugees and Guantanamo Bay detainees. However, Lush resist being described as an "ethical company". Their website states: All business should be ethical and all trade should be fair. Individual companies should not stand ou simply by not being damaging or unfair. No company should be trading from an unethical position and society has a right to expect as the norm fairness and resource stewardship from the companies that supply them." The Constantines' approach is extreme, but it does illustrate the responsibility that leaders should now see as necessary for setting the right culture and values in an organisation, which are key influences on the way people behave. The process by which organisations are run is known as corporate governance. Good governance aims to support organisational success, as well as ethical leadership, which is ultimately reflected in the culture, values and performance of the organisation. Required: answer the questions in details. 1. What specific ethical dilemma or challenge are the Constantines facing in this case? 2. How did this ethical dilemma arise, and what are the key factors contributing to it?3. What potential consequences, both positive and negative, might result from the leaders actions? 4. With reference to the above case, and the approaches to leadership used by the Constantines, evaluate the importance of leadership in achieving strategic success.

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