Ethics_Reflection_Paper

Ethics Reflection Paper Amr Hani Habes University of Phoenix STR/581 – Week One Leon Baudot May 16, 2010 Role of ethics and social responsibility in developing a strategic plan The major concern of any shareholder is to maximize the profit, consequently, organizations that seek maximizing their profit tend periodically to redefine the companies missions and strategies. Those successful strategic managers realize the importance of social responsibilities, precisely, recognizing the legitimate rights of the firm’s claimants (Pearce & Robinson, 2009). Strategic managers must recognize the internal stakeholders including stockholders and employees, on the other hand, strategic managers must also consider the outsiders such as suppliers, government, local communities, and public (Pearce & Robinson, 2009). Because incorporating social responsibilities into companies missions is not an easy task, thus, any organization that tends to incorporate the interests of the internal and external stakeholders into its mission statement must consider the following steps: 1- Identifying all internal and external stakeholders, 2- Understanding stakeholders’ needs and expectations, 3- Prioritizing all stakeholders’ needs and expectations as wells as the reconciliation of stakeholders’ claims, finally, 4- Coordinating the claims, needs, and expectations with the company mission (Pearce & Robinson, 2009). As mentioned previously, shareholders’ main concern is to maximize their annual income and net profit, thus, the question of how being a social responsible company can help in maximizing the profit. Companies need to understand that incorporating social responsibilities into their companies’ missions will result in an indirect impact of the companies’ success. Apparently, winning the loyalty of the growing legions of consumers will require new strategies and new alliances in this century (Pearce & Robinson, 2009). Additionally, since companies are required to be fully complying with the general civil and criminal laws, strategic managers are forced by law to consider all legal responsibilities to prevent their companies from any social scandals in addition to their economic responsibilities. Additionally, ethics and social responsibilities can benefit or hinder companies’ bottom line. Nowadays, there are hundreds if not thousands of competitors in each market, thus, customers do not only look for the best quality, instead, customers also look for intangible features that companies offer. For example, presuming that a certain company may hinder its bottom line if it harmed the society by direct or indirect way. This company may expect a reduction of customers number, thus, the company may lose its customers to other competitors who might not technically perform as good as it does. As a counter action, the company has to reduce its prices to redeem its customers again, since some customers may intend to punish the company by turnover to other competitors and once the company reduced its prices, those customers may consider them selves as winners and the company as a loser. On the other hand, companies may gain a better financial performance due to the ethical concepts they follow. Increasing buyer power is a considered fact that every company has to implement, since the rise of the consumer movement has meant that buyers-consumers and investors are increasingly flexing their economic muscle (Pearce & Robinson, 2009). Customers are becoming more interested in buying products from social responsible companies, and Bank of America is a good example, since the bank offers the world's greatest skyscraper by implementing the best and greenest skyscraper in 2008. Finally, since organizations have internal and external stakeholders, external stakeholders usually don’t have financial interests, but strategic managers must realize that corporate social responsibilities are offset in the long run by an improved company image and increased community goodwill (Pearce & Robinson, 2009). Considering the CSR as intangible assets that can prove valuable solutions in crises will force companies to incorporate social responsibilities and ethical concepts into their missions. For example: public had accepted Johnson & Johnson assurance for the public safety when the company discovered with Tylenol cyanide scare in 1982, consequently, the financial damage was minimized. Thus, social responsibilities have significant role in developing strategic plan when incorporating them into mission statements, since mission statement not only identifying the nature of the product or service that the company can produce, it can embodies what the company believes, as a result, the mission statement recognizes the legitimate claims and expectations of its external stakeholders (Pearce & Robinson, 2009). How my ethical perspective has evolved throughout the program After running both Ethics Awareness Inventory and Ethical Choices in the Workplace, I found the followings: Considering ethical perspective, I tend to base my ethical perspective o what is good to be, rather than what it is good to do. I believe that ethics should focus on ways to help people achieve moral excellence (UOP, 2010). When asked to judge whether an individual’s actions are ethical, I look beyond the actions to examine the individual’s character. Moreover, my ethical style that I rely on the ability of individuals to make sound moral judgments. I do not believe that is enough to comply with some present standards or principles of right and wrong to find the solutions to a complex ethical dilemma. I value such qualities as honesty, wisdom, and intergrity. Apparently, I face some frustrations in addressing ethical dilemmas. Because social inequalities exist in our societies, not everyone has an equal opportunity to develop the virtues I value so highly. In ethical discussions, I may be frustrated as I begin to realize that not all people have similar values (Ethical Choices, 2010). Moreover, I believe that development of character within individuals is a slow and deliberate process that has been neglected in recent years. The ideal goal is not compatible with tendency for some people to look for quick fixes for problems. Finally, the Ethical Awareness Inventory closely had identified my ethical values. I believe the program can give more accurate results by providing more questions. References Pearce, J. A. & Robinson, R. B. (2009). Strategic Management: Formulation Implementation, and Control (11th ed). University of Phoenix Custom Edition e-Text. Retrieved May 15, 2010. University of Phoenix (UOP). (2010). Williams Institute: Ethics Awareness Inventory. Retrieved May 15, 2010 from University of Phoenix rEsources. https://ecampus.phoenix.edu/classroom/ic/classroom.aspx University of Phoenix (Ethical Choices). (2010). Williams Institute: Ethical Choices in the Workplace. Retrieved May 15, 2010 from University of Phoenix rEsources. https://ecampus.phoenix.edu/classroom/ic/classroom.aspx