University of Phoenix
MGT/498, Strategic Management
“Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control. The study of strategic management, therefore, emphasizes the monitoring and evaluating of external opportunities and threats in light of a corporation’s strengths and weaknesses.” (Wheelen &Hunger, 2010) Before selecting a plan by which organization will go by and comply with managers will have to figure out what is it that is valuable to the organization, where are the boundaries, what behavior will be considered unacceptable. All of it will determine the whole and will be in guidance with organization’s moral values or ethics.
Ethics and Social Responsibility Shaping Strategic Management
Each corporation decides which way to go and how to do business. Ethics and social responsibility should play a key role while working on strategic plan for the corporation. Doing business by considering moral values is important for business’s stakeholders. Customers, employees, and investors will evaluate the company on the radar of ethical values. Investors don’t appreciate shady activities that put their money at risk. Customers will not think highly of the company that is cut in doing unethical behavior and most likely will not buy from again. Employees will not think that the company has their back if the company is in wrong doing. It is easy to lose the trust in corporation and it is extremely difficult to restore the trust again. Therefore it is in the best interest of the corporation to do business ethically and be social responsible in the