A senior management responsibility is determined the strategic plan, direction, and decisions in strategic planning; he has to deal with conflicts and resolved with ethical responsibility for creating an adaptable strategic plan. Business responsibilities are four economic (goods and service), legal (laws), ethical, and discretionary. Ethics and social responsibility within organization are part important of developing strategic plan. Ethical responsibility is follow believes about behaviors society (Wheelen and Hunger, 2010). Also the social responsibility is the way how an organization makes activities that may not be harmful, and it can be good for the community (Abdullah, 2013). In this paper develops the role of ethics and social responsibilities in strategic plan considering the stakeholders needs and agendas. An example of an organization violated ethical principles and prevents ethical violations. The Role of Ethics and Social Responsibility
The role of ethics and social responsibility is as mentioned before is important in strategic plan. The ethical responsibility in strategic plan is following commonly beliefs about behavior in a society. The role of social responsibility is the actions for the organization that act to development social goods, beyond make profit. Social responsibility is both ethical and discretionary, which is focusing the obligations that assume that organization with the society. The difference between them is people expect more than of each responsibilities. The role of Ethical and social responsibility in developing a strategic plan is achieve the society’s demands and obligations that organization assume (Wheelen and Hunger, 2010). If an organization do not considering ethical and social responsibility that other two responsibilities are affected too, and it would be more government regulations that affected the organization. Also ethics and social responsibility have to act with transparency also improves the company’s
honesty with stakeholders (Abdullah, 2013). A stakeholder is anybody who is affected by the activities of a business as customers, suppliers, and society. When a strategic plan is developing, management needs to consider the stakeholders’ needs. An organization is constantly monitoring stakeholders’ needs because it allows to meeting its economic and legal responsibilities. For example, an employee wants fair days and benefits. A customer wants good product and lower prices; suppliers want bill paid. An organization has the obligation to treat a stakeholder equally. As mentioned before ethics and social responsibility have to act with transparency also improves the company’s honesty with stakeholders; ethical and social responsibilities support the implementation of strategies and notify the activities to stakeholders. A positive opinion of the company can increase profits and satisfy the stakeholders’ needs and agendas. Company Overstepping Ethical Behaviors
One the most common reason the companies act unethical is that the values between a company and stakeholders. One example is Target impress the marketing industry when the company could predict with a high degree a woman is pregnant and her expected due date only for the items that she purchases. The more customers information that a company have; the company can offer specific products and services (Gillikin, 2013). Target not broke the law, but the company cross the limit about customer privacy. The preventive measure would take to avoid this type of situation is to ask to the customers if they want to provide personal information. The company has the obligation to explain to the customers the benefits of sharing personal information with the company. The most important is to respects the customer’s privacy. In conclusion as mentioned before a senior management responsibility is determined the strategic plan, direction, and decisions in strategic planning; he has to deal with conflicts and resolve them with ethical responsibility for creating a strategic plan. The role of ethical and socially responsibility in developing a strategic plan considering the stakeholders needs and agenda is achieve the society’s demands and obligations that organization assume (Wheelen and Hunger, 2010). If an organization does not consider its responsibilities as economic, legal, social responsibilities, the organization is affected with more
Abdullah, A. (2013, August). Five important issues of ethics & social responsibility in the strategic planning process read more: http://www.ehow.com/info_8618109_five-responsibility-strategic-planning-process.htm
Gillikin, J. (2013). Ethical boundaries with customer profiling. Retrieved from http://yourbusiness.azcentral.com/ethical-boundaries-customer-profiling-13231.html
Wheelen, T. L., & Hunger, J. D. (2010). Concepts in strategic management and business policy: Achieving sustainability (12th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.