Ethical and Environmental Scan Paper: Enron, Google, Amazon, and Microsoft
Ethics and the environmental responsibilities of companies tie directly into those of social responsibilities and occupy a very important position in both incorporating into strategic plans and the company’s value system. In this paper, the subject to describe is how the role of ethics and social responsibility is developed into a company’s strategic plan; this will enclose an example of how Enron initiated an overstepping of these ethical boundaries. The paper will also describe the internal and external environments of how Google, Amazon, and Microsoft using an environmental scan. Included in the scan will be a determination of the competitive advantages each company has and what the strategies of each company are. The paper will finally point to how each company creates value and sustains completive advantage through their business strategy, and to what measurement guidelines each company is using to verify strategic effectiveness. Keeping an honest code of ethics can ensure that a company achieves their missions, visions, and general objectives in a manner that can provide a solid framework for years to come. Ethics can also assist in ensuring guidelines are being made to bind an organization by a common thread and interests that guide employers and employees to avoid straying from the intended path of the company. Another element of today’s current strategic planning process is corporate social responsibility or CSR. This is when managers confront different situations of increasing demand from stakeholders. The specific demand has been marked by many claims that link themselves to corporate social responsibility of an organization’s projected profits, in the media and many other faucets, such as up-and-coming international CSR organizations. The motivation of this is clear; if a positive CSR is present, and a financial performance relationship is identified; companies will be motivated and pushed to increase corporate spending on various CSR activities in the name of enhancement. As for those companies who include social responsibility as one of the desired employee criteria, many are choosing to leave little to the imagination and contribute to the general improvement. A CSR focuses on two areas, including both internal behaviors (which refers to the way a corporation conducts their daily operations and business functions), and their external behaviors that refer to any organizations involvement outside of the direct business interests (Jones, 2004). The process of internal behavior planning generally starts within the human resources department or HR. HR directly contributes to the recruitment and retention of employees. Although the above listed external behaviors can include certain functions, they do differ from internal CSR both because management and public relations will consider the ending financial. Ethical Boundaries: Enron
Corporate scandals such as Enron have scarred the business industry forever. Enron became a failure because the unethical practices were exposed just as the Justice Department began a criminal investigation after Enron filed for bankruptcy (Corrado, 2008). After the investigation started, it was revealed that top executives had been inflating stock prices via numerous techniques and misleading the statements made by the public. It turns out this was done in an effort to raise the stock prices, so that Enron would earn more money. Five different individuals were exposed to have made a total of $150 million off such schemes (Corrado, 2008). Basically as Enron grew as a company, their poor ethics slowly destroyed them and it caught up to everyone in the end. This ultimately brought high levels of frustration to customers, and the actions and poor decision-making fell on the shoulders and responsibility of management. This resulted in customers leaving with levels of distrust in Enron, and...
Please join StudyMode to read the full document