November 6, 2012
Social responsibility and ethics
Strategic management is defined as the set of decisions and actions that will result in the formulation and implementation of plans designed to achieve a company’s objectives (Pearce & Robinson, 2011).. Nine tasks comprise a firm’s strategic plan that will ensure high levels of performance. The keystone in developing a strategic plan is formulation of an organizational mission statement. Finding a balance between managerial philosophy and stakeholder demands is a primary duty of strategic managers. A well developed mission statement will reconcile internal and external stakeholder conflicts. Corporate social responsibility is a standard priority of present-day business. Social responsibility is categorized into four areas: economic, legal, ethical, and discretionary. Each category must appropriately be strategically planned and implemented by management to ensure a company is socially responsible. Economic and legal responsibilities have traditionally been the focus of businesses. Trends in environmental safety, increasing buying power, and globalization of business have propelled further investment of corporate social responsibility programs. Over the past five decades ethical and discretionary responsibilities have become more significant to CEO’s and strategic managers. Business ethics is a set of principles and standards that determine acceptable conduct in business organizations (Pearce & Robinson, 2011). An organization’s ethics are a mixture of personal beliefs and industry standards of conduct. Ethical responsibilities may not be covered by the law. In fact, a company can sell a legal product, but the product may be considered unethical to society. Discretionary responsibilities involve a company’s voluntary contributions to community welfare.