Reviews the role of ethics and social responsibilities in developing a strategic plan while considering stakeholder needs and agendas. Reviews the four key responsibilities and priorities as stated by Carroll; economic, legal, ethical, and discretionary responsibilities. Discusses the importance of integrating ethical and social responsibilities in a strategic plan. Uses Enron an example of a company overstepping ethical boundaries and discusses measures that could be taken to avoid future unethical behavior by a company. Ethics
According to Lantos (2001) "It is no news that today’s business organizations are expected to exhibit ethical behavior and moral management. However, over the past half century the bar has been steadily raised. Now, not only are firms expected to be virtuous, they are being called to practice “social responsibility” or “corporate citizenship”(Carroll 2000, p. 187), accepting some accountability for societal welfare" (p. 1). Ethical and social responsibilities are a necessity in developing a strategic plan. There are four key responsibilities an organization needs to establish when developing a strategic plan. These four responsibilities integrated together will meet most needs and agendas of the stakeholders.
Role of Ethics and Social Responsibility in Developing a Strategic Plan
"Should strategic decision makers be responsible only to the shareholders, or do they have broader responsibilities?" (Wheelen & Hunger, 2010, p.72).The strategic decision makers are the individuals creating the strategic plan, incorporating both ethical and social responsibilities into the company's plan can be a burden and compromises need to be taken into consideration to meet both ethical and social responsibilities while meeting stakeholders needs and agendas. Stakeholders are referred to as individuals who are "affected or are affected by the achievement of the firm's objectives" Wheelen, T., &...