Ethical Issues in Strategic Management by Audra Bianca - Updated September 26, Strategic management focuses on how an organization uses a strategic planning process to make decisions. All managerial actions must theoretically match an organization's central goals and department-level operational goals. Ethical issues in strategically managed organizations surface when managers make decisions to advance goals that have negative consequences. Self-Gain One of the biggest problems a company could face in terms of corruption occurs when a manager or another powerful person uses a position of power to make deals that benefit himself while not benefiting the company or its stakeholders, including shareholders and workers.
This is because, business ethics an important topic to the success of a business and gaining competitive advantage. You can relate very well to this because of the continuous news release of businesses engaging in several non — ethical behavior as well as the impacts of this on the businesses.
So what is Business ethics?
Business ethics corporate ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment.
It applies to all aspects of business conduct and is relevant to conduct of individuals and entire organizations. Rules are a collective idea of what is right and wrong for the good of a group of people the breach of which results into punishment.
Ethics are a set of moral principles to guide human behavior. Sources of Rules The law: This is the highest source of rule from which all other rules must originate or conform. Any rule that is not conform to the law, which is the constitution of a country, then it, means such rules are illegal and cannot be enforced on any individual.
Non- legal rules and regulation: These are rules issued by some specific bodies to regulate the behavior of its members. These may not necessarily be conforming to the laws of a certain jurisdiction due to how complex and global some of them are.
Ethical behavior is seen as the highest level of behavior that society expects. This means directors must have systems and values that take into account everyone who has a legitimate interest in the company, and respecting their rights and views. This means open and clear disclosure of relevant information to all stakeholders and not concealing information when it may affect decisions.
To ensure this, there has to be independent non-executive directors. This means telling the truth and not misleading shareholders and other stakeholders. Management must be honest with preparing and preparation of financial statement and other operations of the organization.
This means management accepting the credit or blame for governance decisions. The South Africa King Report stressed that; there must be a system that allows for corrective action and prevailing mismanagement to ensure to ensure responsibility. This refers to whether organizations and its directors are answerable in some way for the consequences of their actions.
The UK Cudbury report stressed that making the accountability work is the responsibility of both parties directors and stakeholders.
This means how an organization fulfills other principles of corporate governance. It is often a very valuable asset of the organization. This means that the board making decisions that enhances the prosperity of the organization. This is ensured by directors having multiple conceptual skills to management that aim to maximize long-term returns.
This means management being straightforward in dealing and completeness. It means, adhering to principles of professionalism and probity. The Cudbury report stressed on the need for personal honesty and integrity of preparers of accounts.
This means managers have a duty of faithful service in respect of stakeholders and their behavior must always reflect it. The boundaries of management Discretion: The stakeholder view of company objectives:This book is suitable for academicians, professional students, tutors and practitioners of strategic management, governance and business ethics who are aspiring to become board members, chief executive officers, chartered certified directors, company .
4 The Five Stages of the Strategic Management Process Incorporating ethical considerations means using society’s standards of what constitutes right or wrong behavior as the basis for your. Ethics and Strategic Management Paper Yelena Kruzhkova University of Phoenix MGT/, Strategic Management Sheilahmarie Buendia 05/18/ Strategic Management “Strategic management is a set of managerial decisions and actions that determines the long-run performance of a corporation.
It includes environmental scanning (both external and. 4 The Five Stages of the Strategic Management Process; Ethics are a consideration from the very early stages of a company’s development, when the business owner crafts a mission statement in.
This essay attempts to provide a useful research agenda for researchers in both strategic management and business ethics. We motivate this agenda by suggesting that the two fields started with similar interests, diverged, and are beginning to converge again. The role of ethics and social responsibility can be further enhanced during the strategic planning by instituting a code of ethics in the organization.
It helps to establish a business behavior that recognizes sincerity, candor, honesty and transparency to promote the organization’s credibility and influence.