Ethics and Social Responsibility
Ethic and social responsibility play a crucial role within organisational identity of personal value systems. Clients’ confidence is shaken by how organizations strategically operate. Consequently, organizations must consider ethics and corporate social responsibility in strategic planning. Further, organizations must conform with established ethical standards to avoid having adverse effects to stakeholders. Organizations must also establish ways of balancing agenda of stakeholders with ethical responsibilities through creating precautionary measures.
Ethics refers to well-founded standards on right and wrong behaviors. It involves what people ought to do in terms of virtues, obligations, rights as well as fairness in the society. Further, business ethics involves examining moral beliefs and conducts continually and living up to well-founded standards (Hartman, Desjardins and Macdonald 2014). However, most people consider business ethics as evading breaking criminal laws in work-related activities, actions that lead to civil lawsuit or situations resulting to negative image. It is important to point out that, ethics does not form part of business strategies of achieving certain goals but is part of logical actions.
Social responsibility, on the other hand entails, attaining organizational outcomes on specific issues and problems that have beneficial instead of adverse impacts on corporate stakeholders. Most importantly, social responsibility regards, considering the consequences of clients’ stakeholders, employees and communities to organizational activities. It encompasses bringing corporate behaviors to a level congruent with current expectations, values and social norms. Social responsibility also involves societal expectations within a given time (Giacalone & Thompson, 2006). These are behaviors as well as norms which society expects entities to follow. Organizations have obligations extending beyond maximizing profit to making positive contributions to the society
Role of Ethics in Strategic planning
Ethics assist corporations in attaining their visions, missions and goals strategically through offering framework as well as direction. Ethics ensures also that organizations have guidelines, which bind it to a common thread; guide employees conduct and assist in avoiding deviation from anticipated strategic paths. Further, ethic plays a key role in facilitating preparation of strategic plans according to stakeholder’s interests whether, the society, employees’ suppliers or consumers where an entity operates (Giacalone & Thompson, 2006).
Additionally, other than developing competencies among decision makers, ethics foster trust as well as collaboration among participants of current and forthcoming business results. Further, business ethics assist organizations with compliance, managing risks, enhancing reputation and its values. Creating strategic plans while implementing business ethics assist organizations in establishing the essence of community identity, envisioned future, core value as well as its core purpose. Business ethics also act as a tool of establishing and reflecting enterprise standards, values and procedures.
Role of social responsibility in strategic planning
Managers face varied and growing demands from stakeholders. The demands are marked by claims that link social responsibility to enterprise profitability. However, research evidencing the relationship between social responsibility and organizational profit is inconclusive. Nevertheless, organizations adopt social responsibility in strategic planning to contribute in improving societal well-being and in minimizing adverse effects of their operations to the society.
Moreover, social responsibility entails internal behaviors referring to how corporations conduct its operation and external behaviors involving enterprise engagement outside the business interest. Further, while internal planning begin with the Human Resource in recruiting and retaining employees, external strategic planning involve considering financial impacts of management decisions to stakeholders. Consequently, managers must not engage in business, which causes widespread suffering in order to make profits. Entities should also respect clients and community interests by refraining from jeopardizing their safety and privacy.
Overstepping Ethical Boundaries
Advertising, marketing and promotion companies overstep ethical boundaries with their business strategies. Multimedia environment offer organizations an endless opportunity of hawking their goods and services to clients (Bonn and Fisher 2005). Further, the organizations, create products awareness, establish brand names, offer information regarding consumers and convince clients of the best product to buy. Owing to stiff competition and higher financial stakes, companies devote their resources and time to make a name for their products. With the aim of maximizing profit, these companies cross ethical lines in conducting their business.
Moreover, the media allow beer and tobacco advertisement to be aired. In so doing they aim at maximizing profit through charging the advertisers heavily. In optimizing profit gains, the stakeholder’s interest are also maximized through dividends, they acquire. However, in maximizing the happiness of stakeholders, the happiness of the majority is at stake. Most teenagers and children watch such advertisements and take the habits at their young age. The advertisement is also tailored to lure the youth into the smoking and drinking habits. Other advertisements use children in order to have a wider reach. Consequently, the media overstep ethical boundaries by failing to protect the interest of minorities accessing the media leading to inducing children to drug abuse.
Advertising campaigns must refrain from using children in advertisement. The advertisement must also be frame in manners that do not lure children. According to deontology, actions have moral worth if they are based on goodwill. Consequently, the media has moral obligation of doing the right thing by refraining from luring children in drug advertisement. To this effect, policy barring advertisement of drugs must be complied with (Giacalone & Thompson, 2006).
Furthermore, in maximizing stakeholders’ interests, the media companies must aim at promoting the well-being of the society. Consequently, the right action that leads to great pleasure to the society is through adhering to established laws that govern tobacco and drugs advertisement. Restricting such, advertisement will lead to great happiness of the society.