Ethical Perspective

Ethical Perspective

Ethics (2010) is defined as the "moral principles that govern a person's behavior or the conducting of an activity" (Para. 1). According to this definition, individuals or a business can use ethics daily. In companies business plans are created and consideration to what parts ethics will play is always discussed. This leads to how social responsibility will need to be considered because a company will want to keep the needs of the employees and the stakeholders at the front of each new business plan. Ethical behavior should change over time with an increased awareness between a company and their employees, just as there should be a change that I have seen through my master's program.

Role of Ethics in Strategic Planning

Organizations must continually re-evaluate their mission statement to insure that the statement can reach the vision of the organization and the most part is upholding the values of the stakeholders. Stakeholders are those individuals that are a part or affected by the organization and they have an interest in what the company is doing such as, employees, stockholders, customers, suppliers, government entities, creditors, and the community (Pearce & Robinson, 2011). An organization will want to ensure that they are trying to meet the expectations of the stakeholders by making sure all claims are treated fairly and are encompassed in the vision and mission statement of the organization.

Ethical Consideration

Today many organizations are under pressure from their stakeholders but also from what other organizations have not gotten away with such as Enron. These ethical considerations affect business organizations and they offer unique responsibilities to the organization. Organizations have the responsibility to their stakeholders with what is morally right and taking action to make sure that these actions are implemented with the best plan possible. However, there will be negative ethical practices and they can cause some serious damage to the advancement of the organization because they fell short of the stakeholders expectations. Many times the negative ethical practices come from the top-level executives and can cause the organization to be unstable and for the stakeholders to lose faith in the organization. To prevent this organizations need employees with similar values and morals to the organization so that there are long-term goals that can be set (Jalil et al, 2010).

Social Responsibility

Corporate Social Responsibility is defined as "the idea that a business has a duty to serve society in general as well as the financial interests of its stakeholders" (Pearce& Robinson, 2011, p.52). Everyday organizations make decisions that can affect people's lives beyond those employees that work for the organization.