When explaining the role of ethics and social responsibility in developing a strategic plan, the stakeholders need to be considered. So it’s not just customers and employees now you have these people who have invested in your company. “Each of these interest groups has justifiable reasons for expecting (and often for demanding) that the firm satisfy their claims in a responsible manner. In general, stockholders claim appropriate returns on their investment; employees seek broadly defined job satisfactions; customers want what they pay for; suppliers seek dependable buyers; governments want adherence to legislation; unions seek benefits for their members; competitors want fair competition; local communities want the firm to be a responsible citizen; and the general public expects the firm’s existence to improve the quality of life.”
There are two kinds of stakeholders the inside ones and the outside ones, the issues are that they both look at the company mission for a social responsibility towards society and at the same time the financial interests of the stockholders. For example an outside stakeholder may demand that an insider would be subordinated for the well being of the society and vice versa. This starts to get complex by thinking you’re running a company that needs to make a profit to succeed but at the same time must answer to a social responsibility and particular ethics point of view. An example of a company being socially responsible while making a profit is Toyota. They make the top selling Prius which is the hybrid that leads in developing efficient gas-electric vehicles. There are four types of social responsibilities for which strategic planners must plan, which are: economic, legal, ethical and discretionary. In economic is assumed that the company is providing goods and services at a cost that’s reasonable. In legal responsibilities the company must adhere to the laws that regulate it. In ethical responsibilities the company must have a...
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