MGT 498 / Strategic Management
January 26, 2011
The purpose of this paper is to explain and define the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. This paper will include an example of a corporation overstepping ethical boundaries for stakeholder agendas, and what type of preventative measures were used to avoid to the situation. Business Ethics
Business Ethics is a form of ethics, which examines the ethical principles, and moral problems that occur in a business. Ethics plays an extremely vital role in business today due because of policies, procedures, and practices. Policies are in place to administer order and structure in an organization. Employees oftentimes undermine these rules and regulations due to acquiring a little or no respect for his or her supervisors and the management team. Social Responsibility
The concept of social responsibility proposes that a private corporation has responsibilities to the society that extend beyond making a profit. Strategic decisions often influence other entities than just the company. For instance, a decision to cut back by closing some distribution centers and discontinuing manufactured goods, affects not only the company’s personnel but also the surroundings where the plants are located. This also hinders the consumers and vendors with having no other source for the discontinued products. Decisions to subcontract, implementation of software, or customer relations to contractors in other areas are likely to have a major force on more than just company revenue. These decisions can raise questions regarding the suitability of ensured missions, objectives, and strategies. Leaders must be able to handle these differing interests in an ethical approach to devise a practical tactical plan. The role of Business Ethics and Social Responsibility
Both of these roles are beneficial for...