Kế hoạch kinh doanh - Linking strategy to ethics and social responsibility

Strategy, Ethics, and Social ResponsibilityScreen graphics created by:Jana F. Kuzmicki, Ph.D.Troy University-Florida Region Linking Strategy to Ethicsand Social ResponsibilityShould there be a link between a company’s efforts to craft and execute a winning strategy and its duties toConduct activities in an ethical manner?Demonstrate socially responsible behavior byBeing a committed corporate citizen?Attending to needs of non-owner stakeholders? Key IssuesWhat Is Business Ethics?Business ethics involves applying general ethical principles and standards to business behaviorEthical principles in business are not different from ethical principles in generalBusiness actions are judgedBy general ethical standards of societyNot by a set of rules businesspeopleapply to their own conduct Are Ethical Standards Universal or Dependent on Local Norms?Three schools of thought regarding extentto which ethical standards can be applied . . . Ethical UniversalismEthical RelativismIntegrative Social Contracts TheoryConcept of Ethical UniversalismAccording to the school of ethical universalism . . . Same standards of what is ethical and what is unethical resonate with peoples of most societies regardless ofLocal traditions andCultural normsThus, common ethical standards can be used to judge conduct of personnel at companies operating in a variety ofCountry markets andCultural circumstancesConcept of Ethical RelativismAccording to the school of ethical relativism . . . Different societies/cultures/countriesPut more/less emphasis on some values than others Have different standards of right and wrongHave different social mores and behavioral normsWhat is ethical or unethicalMust be judged in light of localcustoms and social mores andCan vary from one country to another Concept of IntegrativeSocial Contracts TheoryAccording to the integrative social contractstheory, the ethical standards a company should try to uphold are governed by bothA limited number of universal ethical principles thatare widely recognized as putting legitimate ethicalboundaries on actions and behavior in all situationsandThe circumstances of local cultures, traditions, andshared values that further prescribe what constitutesEthically permissible behavior andWhat does notMoral managerAmoral manager Immoral managerThree Categories of Management MoralityManagerial ethical and moral principlesDedicated to high standards of ethical behavior inOwn actionsHow the company’s business is to be conductedConsiders it important toBe a steward of ethical behaviorDemonstrate ethical leadershipPursues business successWithin confines of both letter and spirit of lawsWith a habit of operating well above what laws requireCharacteristics of a Moral ManagerCharacteristics of an Immoral ManagerActively opposes ethical behavior in businessWillfully ignores ethical principles in making decisionsViews legal standards as barriers to overcomePursues own self-interestsIs an example of capitalistic greedIgnores interests of othersFocuses only on bottom line –making one’s numbersWill trample on others to avoid being trampled uponBelieves business and ethics should notbe mixed since different rules apply toBusiness activitiesOther realms of lifeDoes not factor ethical considerations intoown actions since business activity liesoutside sphere of moral judgmentViews ethics as inappropriate for tough, competitive business worldConcept of right and wrong is lawyer-driven (what can we get by with without running afoul of the law)Characteristics of anIntentionally Amoral ManagerIs blind to or casual about ethics ofdecision-making and business actionsDisplays lack of concern regardingwhether ethics applies to company actionsSees self as well-intentioned or personally ethicalTypical beliefsDo what is necessary to comply with laws and regulationsGovernment provides legal framework stating what society will put up with—if it is not illegal, it is allowedCharacteristics of an Unintentionally Amoral ManagerDo Company StrategiesNeed to Be Ethical?Approaches of most company managersEnsure a company’s strategy is legalMay or may not ensure all elements of strategies are ethicalApproach of senior executives with strong ethical convictionsInsist all aspects of strategy fall within ethical boundariesApproach of immoral or amoral senior executivesUse shady strategies if they think they can get by with itUse unethical or borderline business practicesHide ethically questionable actionsLarge numbers of immoraland amoral business peopleOverzealous pursuit of personal gain, wealth, and other selfish interestsHeavy pressures on company managersto meet or beat earnings targetsCompany cultures that place profits andgood performance ahead of ethical behaviorWhat Are the Drivers of Unethical Strategies and Business Behavior?Approaches to Managing a Company’s Ethical ConductUnconcerned or non-issue approachDamage control approachCompliance approachEthical culture approachWhy Should Company Strategies Be Ethical?An unethical strategyIs morally wrongReflects badly on the character of company personnelAn ethical strategy isGood businessIn the best interest of shareholdersFig. 10.1: The Business Costs of Ethical FailuresLinking Strategy to Ethics and ValuesIf ethical standards are to have more than a cosmetic role, boards of directors and top executives must work diligently to see they are scrupulously observed in Crafting a company’s strategy andConducting every facet of a company’s businessTwo sets of questions must be considered by senior executives when reviewing a new strategic initiative Is what we are proposing to do fully compliant with our code of ethical conduct? Is there anything here that could be considered ethically objectionable?Is it apparent this proposed action is in harmony with our core values? Are any conflicts or concerns evident?What Is Corporate Social Responsibility?The notion that corporate executives should balance interests of all stakeholders began to blossom in the 1960sSocial responsibility as it applies to businesses concerns a company’s duty toOperate in an honorable mannerProvide good working conditions for employeesBe a good steward of the environmentActively work to better quality of life inLocal communities where it operates andSociety at largeWhat Is Socially ResponsibleBusiness Behavior?A company should strive to balance strategic actions To benefit shareholders against any possible adverse impacts on other stakeholdersTo be a good corporate citizenSocially responsible behaviors includeCorporate philanthropyActions to earn trust and respect of stakeholders fora firm’s efforts to improve the general well-being ofCustomersEmployeesLocal communitiesSocietyEnvironmentFig. 10.2: Categories of Socially Responsible Business BehaviorLinking Strategy and Social ResponsibilityThe combination of socially responsible endeavors a company elects to pursue defines its social responsibility strategyManagement should match a company’ssocial responsibility strategy to itsCore valuesBusiness missionOverall strategySome companies are integrating socialresponsibility objectives into theirMissionsPerformance targetsStrategies