Your initial response is due in the 2 Main news group by the end of the day 09/26/06.
1. Identify some of the policies that serve as guidelines for actions and decision-making in your
company (see Pearce and Robinson, pp.257-261). Are the policies written and formal or
unwritten and informal?
Pearce and Robinson (2005) dialogue about how creating policies is a way to empower and
communicate guidelines to decisions (p. 297). Stewart Title (Stewart) is action and decision-
making strong in creating and implementing policies, which augments a strong corporate
compliance code of conduct. Furthermore, creating policies designed to control decisions while
defining allowable discretion within which operational personnel can execute business activities
(Pearce, 2005, p. 297).
Stewart has written and formal as well as unwritten and informal policies. Informal, unwritten
policies are usually associated with a strategic need for competitive secrecy. Some policies such
as promoting from within are widely known and/or expected by employees and implicitly
sanctioned by management. Managers and employees often like the latitude granted by unwritten
and informal policies (Pearce, 2005). However, such policies may detract from the long-term
success of a strategy. Pearce et al. (2005) convey that formal, written policies have at least seven
advantages (p. 298):
They require managers to think through the policy’s meaning, content, and intended use.
They reduce misunderstanding.
They make equitable and consistent treatment of problems more likely.
They ensure unalterable transmission of policies.
They communicate the authorization or sanction of policies more clearly.
They supply a convenient and authoritative reference.
They systematically enhance indirect control and organization-wide coordination of the
key purposes of policies.
Stewart’s unwritten, informal policy on hiring from within the corporation is heavily monitored and
potential candidates must “reintroduce” themselves to the corporation by formal interviews and
updating accomplishments and career track information (Stewart, 2006). Furthermore, Stewart’s
code of business conduct and ethics has traditionally embodied such rules regarding individual
and peer responsibilities, as well as responsibilities to its employees, policyholders, shareholders
and the public. Some of these rules include:
Prohibiting conflicts of interest (including protecting Company opportunities);
Protecting Stewart’s confidential and proprietary information and that of our policyholders;
Treating Stewart’s employees, policyholders, shareholders and competitors fairly;
Protection and proper use of company assets;
Compliance with laws, rules and regulations (including insider trading laws); and
Encouraging the reporting of any unlawful or unethical behavior.
Therefore, all written, formal policies at Stewart establish indirect control over independent action