Ethics

Ethics

The role of ethics and social responsibility in developing a strategic plan incorporates building ethics, morals, qualities, and standards for the company, and creating moral and socially capable managers. “The managers of business organizations have four responsibilities: economic, legal, ethical, and discretionary (Wheelen & Hunger, p. 73)”. Strategic planning merges a company's central goal with its vision and gives clear guidance on how the company will advance from its present position to a devoted future position. Concentrating on one aspect more than the other will bring about the other one to deteriorate.

Ethical Responsibility

Organizations have an ethical obligation to their representatives, clients and society all in all. A company has an ethical responsibility to earn a profit for their stakeholders because they took the risk and invested within the company. "Ethical responsibilities of an organization's management are to follow the generally held beliefs about behavior in society (Wheelen & Hunger, p. 73)." Ethic’s in business is the process of doing and knowing what is right or wrong in the workplace. "All organizations have ethics programs, but most do not know that they do," wrote business ethics professor Stephen Brenner in the Journal of Business Ethics (1992, V11, pp. 391-399). "A corporate ethics program is made up of values, policies and activities which impact the propriety of organization behaviors."

Social Responsibility

“Social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit (Wheelen & Hunger, p. 72)”. An organization stakeholders have a social responsibility to represent the benefit of the whole organization as a whole, not simply their own self-intrigues. The strategies for which the stakeholders push should not be established simply in light of monetary benefit. Stakeholders of an organization must push for a method that target on long term advantages and development for their organization. The most ideal approach to be socially responsible is by procuring as much benefit as they can, on the grounds that the benefits earned are put back into the company.

Stakeholders

Corporations when confronted with crucial choices need to remember that the choices that they need to make not only influence the company and the associates that work for the organization, yet it additionally influences the community and the corporations' stakeholders. Stakeholders are “a corporation’s task environment includes a large number of groups with interest in a business organization’s activities. These groups are referred to as stakeholders because they affect or are affected by the achievement of the firm’s objectives (Wheelen & Hunger, p. 75)”. The main