The Role of Ethics in a Strategic Plan

The Role of Ethics and Social Responsibility in Strategic Planning

      Organizations and businesses are expected by people in society to behave and act in a way that reflects a social and ethical responsibility of the business.   Many stakeholders want what they perceive as an appropriate return on their investments.   Companies understand that to be successful, companies have to consider social responsibility and ethics as critical parts, and essential parts of a strategic plan.   Social and ethical responsibility standards have to be put in as a part of the strategic process in before-profit information rather than after-profit results if any company wants to accept the best and highest benefits or profits.   This paper will explain the role of ethics and social responsibility in developing a strategic plan, and considering the stakeholder needs.

      To give an explanation on the role of ethics and social responsibility, it is important to know the meaning of ethics and social responsibility.   Ethics basically reflects moral principles which society depicts about the actions of a person or group that reflects a right or wrong.   What ethics does is ensures that companies and organizations achieve their missions, visions, goals and objectives giving the company an idea of framework and direction.   Ethics help ensure guidelines which can help the organization combine into one common bound, oversee the actions of the company’s employees, and avoid movement away from the strategic path. When looking at social responsibilities on the corporate level, it reflects the idea that organizations or businesses have a duty to provide society and the financial interest of the stakeholders. Companies believe that it is the goal to maintain viability through long-run profitability.   Corporate Social Responsibility gives companies the idea that, “there is a responsibility to serve society in general and the financial interest of stockholders” (Pearce, Robinson 2009).   It...