Dr. Homayoun Jamasbi, Instructor
August 12, 2014
Having strong ethics in business, which comprise integrity honesty, and equality play a significant role in the administration of a flourishing business as this role of a business process allows for a characterization in the differences between incorrect and correct principled conduct. Furthermore, having strong ethical standards help an organization in gaining a competitive advantage (Johnson, 2008), and it ensures that the workforce is following the established rules and code of conduct by the leaders of her or his organization.
To increase the importance of strong ethical significance, this paper will clarify the principle character of ethics, sustainability, and social responsibility in relative to an organizations strategy. Furthermore, consideration will be given to the assortment of shareholders that control a business stratagem. Lastly, classification will be given to a company that practiced unethical behavior, social responsibility, and sustainability in their daily functions. Ethics, Social Responsibility, and Sustainability
Ethics, social responsibility, and sustainability are several factors that traditionally have an effect (either negative or positive) on the strategy of an organization’s. For example, a business’s ethical value can have an extensive influence on many levels an organization: Public Image and credibility: image is how a business is viewed by the entities or people within their environment. A lack of credibility and trust can place distrust in distributors, consumers, and suppliers causing a business to lose possible resources, and profit. Business Policies: This characteristic of a business implements procedures or policies concerning the endorsement of diversity and the deterrence of intolerance among the employees and consumers of a business. Ensuring an unbiased and diverse organization allows businesses to enhance attracting a wider selection of investors, consumers, and workforce to their organization, in spite of gender, race, or religious preference. Additionally, maintaining a diverse place of work can have a constructive effect on a company’s ability and credibility to becoming innovative with their ideas as they will gather a larger, more diverse workforce. Long and short-term Measurements: Today’s businesses use metrics in evaluating their achievements, goals, and objectives of ethical standards. Effects of Social Responsibility on Strategy
Social responsibility is imperative to an organization’s social and economic strategy as this facet of business “is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner” (Hopkins, 2011, para 2). Additionally, social responsibility is fundamental to a business’s accomplishment as it helps in the organization and advancement of dissimilar ideas and policies that advance quality of service and life to an organization’s workforce and the surrounding community. To preserve high levels of accountability, company managers must continually take their consumers, employees, community, and shareholders, opinion and voice into concern when developing and implementing their organizational strategy. Effects of Sustainability on Strategy
Sustainability consists of both economic and social workings as well as economic and social components of an organizations strategy. These concepts can have an persuade the assessment of business services and products as related to their consumer base. Furthermore, sustainability can influence an organization’s strategy by the way a company categorizes their internal issues, gathers their research and implements services and priorities into their stratagem (Bansal, & Laughland, 2011). Some obstacles that organizations must surmount when taking into account the effects of sustainability on their strategy comprise obstacles, such as the relation of...
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Hopkins, M. (2011). Definition of corporate responsibility. Retrieved October 28, 2012 from, http://mhcinternational.com/articles/definition-of-csr
Johnson, A. (2008, March, 2). Practicing good ethics gives competitive advantage. Retrieved October 28, 2012 from, http://www.bizjournals.com/denver/stories/2008/03/03/smallb6.html?page=all
Loidice, B. (2010). 10 companies with social responsibility at the core. Retrieved October 28, 2012 from, http://adage.com/article/cmo-strategy/10-companies-social-responsibility-core/143323/
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