January 30, 2013
Ethics and Strategic Planning
Ethics and social responsibility play an important role in developing a strategic plan. Standards and principles regarding business ethics within an organization must be determined to properly define its direction to make its decisions to pursue their strategy. To accomplish this, an organization must realize they do have responsibilities. They have responsibilities not only to themselves, but to the public and their stakeholders as well. Unfortunately, there are too many examples of how a company can overstep ethical boundaries. Luckily, there are measures that can be taken to avoid that type of situation, and businesses can learn from mistakes made in the past.
When developing a strategic plan, it is paramount to determine acceptable behavior within the organization. A lot of how the conduct is determined is based on the type of clientele, customers, or guests that the organization is in contact with. The government plays a defined role with specific regulations, but the individual’s within the company and their individual morals, values, and principles play a big part in setting the tone of the company. As a group of individuals come together, there needs to be a positive culture that spreads throughout the organization. This positive culture will assist in developing a positive social responsibility. “Socially responsible businesses win the trust and respect of their employees, customers, and society and, in the long run, increase profits.” (p. 64) This statement, delivered by Mr. Harold McGraw in his book titled Business Ethics, is spot on. Being socially responsible is at the forefront of the consumers mind. If there are rumors of a business being unethical, it results in negative publicity which can cause declining sales. If the rumors are proven to be true, it can lead to legal action, which will have a negative effect on all stakeholders.
References: Carpenter, M. A., & Sanders, W. G. (2009). Strategic management: A dynamic perspective concepts and cases. (2nd ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. http://www.epa.gov/epawaste/hazard/tsd/pcbs/index.htm. Updated January 13, 2013. Taken January 29, 2013. Harold Mcgraw, (2012). Business Ethics. (3rd ed.). New York City, NY: Jackson/Adler Wash.