Small Private Versus Large Sized Public Business Commerce Essay


The difference between the small and large organization lie in the broader spectrum of products. Small business doesn't hire many people. There is different leadership concepts are used in both organizations. For example in small organizations a leader is more concerned about the production. The focus of the leader is to enhance his business rather than developing people. The leader use despotic leadership style and leader makes all the decisions and the staff is not involved in the process. The business owner and leaders are normally develops a mission statement for the organization. (Vitez, 2012)

Example of small private business

India 2 nite restaurant is a private organization which is run by Iqbal Singh.

West coast Caltex gas station is another example of private organization which is run by Deepak.

However, the large sized public organization is run by the board of directors the leader generally selected by the directors. The leader's responsibility is to lead and inspire others. The success or the failure of the business is based on the leader's skills and his techniques of leading people. The leader initiates policies and put them in practice. In large sized companies the decisions are made benefit both the organization and employees. A leader plans all the activities in advance.

Example of large sized public business

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Telecom is a large size public organization which is run by Simon Moutter.

The other example of LSPB is Mainfreight which is run by Don Braid.

Profit Business versus non-profit business

The leadership style in both businesses is entirely different. The profit business is worked for production and increase the profit. The leadership concepts are used here is focused on one particular goal. The leadership style in the profit based company is about innovation and new ideas and developing people.

Example of Profit Business

Warehouse is a profit organization and is run by Mark Powell.

Apple is a profit organization and it is run by Tim Cook.

On the other hand a non-profit organization is all about humanitarian values and helping others. The leader is focused on changing others life for better and encourage others to help. The organization is not worried about profit. A leader shares the same vision and encourages followers to follow it precisely.

Example of Non-profit Business

Red Cross is a Non-profit organization.

Quitline is also a Non-profit organization.

Social Responsibility

It is a concept to do unto others as you would have them do unto you. It is the responsibility of corporate organizations toward nature and people. It's essential for the organization to become socially responsible as individuals are becoming more social responsible nowadays. A leader is expected be socially responsible and care for others but him. Hubert H. Humphrey said that "The impersonal hand of government can never replace the helping hand of a neighbor. (Theme, 2012)

For Example - Westpac runs a rescue helicopter service as their social responsibility.

Ethics in leadership

Ethics are appropriate values and morals according to an individual or the society. The ethical theories talk about many things such as the behavior and the actions of leaders. It's a leader's responsibility to treat his followers in ethical way. The ethical environment is created by a leader in the organization. (Guide, 2012)

The leader must have ability of serving others and changing their life for better. An ethical leader shouldn't treat his followers as a medium to fulfill his personal goals.

Two leaders who personify ethical leadership are:

Don Braid is one of the best business leaders with high ethical values. He is not just focused on the production or using his employees for his own purpose.

Bill gate is another example of an ethical leader. He does lot of charity work for the kids and trying to change their future. He started his own charity because he wants to help others.

Two leaders who personify unethical leadership are:

Ted Stevens - he was the former senator of Alaska. He took bribe from many contractors and may be sentenced for up to five years. (Watch, 2011)

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Karl-Hermann Baumann - He was the former CEO of Siemens. He get charged by bribery and fined Billion of dollars. (Watch, 2011)


This group has great interest in an entity. The stakeholders have high expectations and demands as to what business should provide to society. The leader should be aware of who the stakeholders in his business and what are his responsibility towards them. (Startup, 2012)

5 Stakeholders a business leader responsible to are:

1. Shareholders

2. Employees

3. Management and owners

4. Government

5. Local Residents

A leader has many responsibilities for each stake holder. A leader is responsible for company's growth and the shareholders have the similar interest they expect the leader to make sure that the company's in profit.

A leader is responsible to make sure that his employees are safe and comfortable working with the organization. Every decision made by the leader should not risk his employee's safety or their work environment.

The Business leader have to make sure that he involves the management in the decision making process. He also has to report to the management and justify his decisions.

As a leader, he is also responsible to make sure that his organization is complying with all the government rules and regulations.

An organization is also responsible for the local resident's safety. He has to make sure that there is no pollution or noise is harming the local residents.

Positive Impacts of Leadership on the society

The impact of a good leader on the society is that the followers achieve their goals and have freedom to speak.

The society has trust in the leader and follows all the decisions of leader and respects them.

For Example:

Barack Obama has a positive impact on the society. He cut down the taxes and the society respect him for that.

Manmohan Singh (Prime Minister of India) changed the entire economy of India and changed everyone's thinking. He showed them what the society is capable of.

Negative Impacts of leadership on the society

Poor leadership can affect a follower's long-term ability to trust.

Poor leadership feels like a betrayal. The society will be filled with resentment and hate.

For Example:

Sadam Hussein made his people suffer because of his attitude. He demanded respect from everyone and killed anyone who didn't agree to him.

Adam Hitler was another example of bad leader. He killed all the Jews because he said they don't deserve to live. He created a fear in the society and nobody felt safe under his leadership.