Ethics and social responsibility is a vital part of a business’s uniqueness and niche. It is necessary for decision makers and planners to create an inclusive plan, which takes into consideration what the firm’s stakeholders require and what their needs are. Businesses are responsible for conducting their activities in an ethical manner in the common market. This is a responsibility that should always be taken into consideration. Compliance with ethical standards and taking into consideration of the stakeholders should be priorities in establishing a balance between the two. This can be achieved by putting in place different defensive measures.
Roles of Ethics and Social Responsibility in Developing a Strategic Plan While Considering Stakeholder Needs
Ethics prevail more in an organization setup than by just being measure or points to note in order not to break the law or alter it. It is prudent to understand that they are used to govern actions in that specific unit. They are used to define how to act and what to do in such situations. This goes a long way in helping the business with managing risks and complying with the law. Social responsibility is the conduct in a working environment on how to deal with peers, shareholders, superiors, and even minors in the organization. Ethics and social responsibility plays a very vital common ground in coming up with strategies that can be used to incorporate all specific parties in the organization.
They have specific roles in establishing a common plan that incorporates stakeholders and what they might need or want to contribute. Stakeholders are a vital key in the growth and development of a firm as they are the source of major resources used in numerous manners to enable projects and developments in the organization. They have voting power that can influence the financial and social impact of the firm. It is thus important, while creating a strategy plan, to include this group of people. The management should ensure that these strategic decisions are met after considering how they might affect the shareholders. It is important to understand that they drive the company in terms of supply, customer-base and generally all activities that contribute to the business thus while making a decision, it is in good intent to be able to consider the specific effects those strategies might have on them. Strategies should be transparent to all to involve everyone in the processes of decision-making and debate in order to feed in everyone’s opinion. This is important in creating an environment of co-relation and improved co-existence and tolerance in the firm. Meetings provide a leveled field for all members to participate evenly in decisions and ideas raised. Raising matters independently from all involved parties helps to improve quality of discussions and decisions reached. Respect as well should be given to not only shareholders but also all concerned in the policy-making and decisions. Comments in discussions should remain respectful while considering how the other people may be affected by those comments. Truthfulness and fairness should be maintained even among the stakeholders in order to offer proper mechanisms and plans that can be able to tackle the possible risks and the impacts they might have on the organization. Members should also be honest in their ideas and comments.
Example of Overstepping Ethical Boundaries and Preventative Measure
Some institutions during the past and even the present have been on the eye of the public for overstepping ethical boundaries and have paid dearly for the act. An example of ethical violation was experienced in the GlaxoSmithKline company is the People’s Republic of China that was caught in a bribery scandal. According to different sources, a couple of employees were given orders to offer bribes summing up to over $400million to Chinese officials. The main objective of this endeavor was for the Chinese government to raise prices on certain pharmaceutical products sold in the country. This was likely as a result of greed since the company is a high profitable institution already. Also, the company itself is a publicly traded company conducting secret deals with the government. This is an illegal move that could affect its stakeholders adversely. This thus does not come as a surprise when their sales drop by 60% since the scandal went public.
Prevention of ethical violations begins with a solid code of ethics being adopted in the business field. It is important for employees to feel the rewards that accompany following ethics. Sometimes employees are pressured to do that which might not be right and it sure may lead to violating different ethic codes. A consistent disciplinary code should be in place to deal with ethical violations when they occur. This should be a swift strategy to be taken in such cases. It also portrays the message that ethical violation equals punishment, which will lead many among the organization from crossing the ethical boarders.