Ethics Paper
Ethics are the moral concerns about what is right and wrong. The decisions made within an organization can be made by a conglomerate of individuals who will influence the culture of the company. Ethically the decision to behave negatively or positively is a moral one; it is up to the employees to take the right course of action in regards to ethical behavior.
Social responsibility and ethical behavior can bring upon significant benefits to a business; however a lack of corporate social responsibility and unethical behavior can damage a firm's success and reputation making it less appealing to potential stakeholders. It is the duty and responsibility of management to ensure that strategic decisions are reached after deliberating as to what internal and external factors of ethics and social responsibility impact the stakeholders.
In the strategic planning process there are five important issues concerning ethics and social responsibility; Social responsibility to the stakeholders, transparency, independence, respect, and fairness and truthfulness. Stakeholders are considered to be anyone who is affected by the activities and decisions of the business. In regards to socially responsible, a company must treat its stakeholders with equality. The influence of a company’s shareholders is essential to the overall growth and progress of a company. According to Joseph Heath 2006, “the stakeholder’s paradigm has served as the basis for one of the most powerful currents of thinking in the field of business ethics.”
In terms of transparency, management team of the company should always provide information honestly and transparently to support all parties involved in better decision making. Transparency enables management teams to identify and monitor potential risks which may arise in the company providing them the option to find alternative solutions.