Role of ethics and social responsibility in
developing a strategic plan
Businesses prepare strategic plans to provide them with a
long-term view of where they want to be at the end of that period. It is a
process involving six key stages: formulation of a mission statement,
conducting and environmental analysis, performing a competitive analysis,
analysis of strategic alternatives, outlining goals and strategies as well as setting
up systems of control. An organization assesses the external values for
opportunities and threats. Such an assessment would reveal what the organization
might do. Similarly, an assessment of internal strengths and weaknesses reveal
what the business can do. Besides the relevant legal requirements, the
organization must rely on ethical values to determine an appropriate course of
action. On its part, social responsibility guides the business on how to
respond to those affected by its activities.
One of the most common ways in which businesses inculcate
ethics is having a code of ethics
(Grower, 2005). If properly developed with the input of all stakeholders, the
code of ethics can be a powerful tool for developing an ethical culture in an
organization. The effective of such a code must, however, extend beyond being a
mere document. Everybody in the organization must own it. When combined with
social responsibility, the code can play an important role in guiding relations
with the various stakeholders of the business organization.
Thus, a good compass on ethics and social responsibility
would help the business maximize the wealth of owners as an important group of
stakeholders. This can be done through proper maintenance of accounts. In
addition, employees as a stakeholder group have various needs including safe
working conditions. This can greatly be enhanced through ethical practice. Furthermore,
the business has a responsibility to consumers who expect safe products. An
ethical policy in that area would help in achieving such goals. Other
responsibilities of the business include to the environment and the society at
large.
Evolution of my ethical perspective
throughout the program
To begin with, the program has been an eye opener to me. It
never occurred to me that a module on ethics would add any value to what I
already thought I knew. It turned out that I was totally wrong. In fact, the
reality is that I now have a broader perspective on ethics than when the
program begun.
Ethics had all along appeared to me as an issue best left
to philosophers. Practical business
people, so I thought about myself, should grapple with real problems and leave
unnecessary theorizing to career academics in the realm of philosophy. With
hindsight, I can say that my perspective on ethics is now very liberating.
Besides learning the different approaches to ethical
decision making, I now know that the survival of a giant business may turn on a
single ethical misstep. Engagement with materials concerning scandals such as
Enron was able to attune be with the practical realities of ethical
decision-making at play (Grower, 2005). Here was a company that was reporting
massive profits even when analysts were musing how this could be in a very
tough business environment. It only took the inquisitiveness of a journalist to
reveal that Enron’s profits were just a fraud. Lesson, never allow a bad
ethical culture to take root in an organization.
Reference
Grover, S.L. (2005).The Truth, the Whole
Truth, and Nothing but the Truth: The Causes and Management of Workplace Lying. Academy of Management Executive, 19,148–57.
0 comments:
Post a Comment