Running head: ETHICS REFLECTION PAPER

Ethics Reflection Paper

ETHICS REFLECTION PAPER

Abstract The role of ethics and social responsibility in developing a strategic plan considering stakeholder needs is a vital part of doing business in our current economy. Ethics is the right and proper way of handling day-to-day activities. The social responsibilities of an organization include legal, economic, and discretionary. A strategic plan must encompass many variables that consumers, customers, employees, investors, and stakeholders have a clear perspective of the goals and objectives of a firm or organization. This paper analyzes the role of ethics and social responsibility and how it has affected my journey through the masters program.

ETHICS REFLECTION PAPER

Ethics Reflection Paper The Role of Ethics and Social Responsibility Ethics are instructions and guidelines used to assist management and staff on how to conduct themselves on the job and at various affairs such as off site meetings and seminars. To ensure a companys policy is adhered, employees must understand the plans implemented by the owners, stakeholders, and staff. The plans are the mission statement, vision statement, and the companys philosophy. They define and clearly state the basic beliefs, values, priorities, and goals for the economy, environment, and the stakeholders. The strategic plan implemented should build a posture that is so strong and flexible that the organization can achieve its goals despite unforeseeable forces. (Mintzberg, Lampel, Quinn, & Ghoshal, (2003), p. 10) The Role of Ethics The role of ethics in developing a strategic plan considering stakeholders needs to encompass a plan, a ploy, a pattern, a position, and a perspective. According to Mintzberg et al, (2003), Each definition adds important elements to our understanding of strategy and encourages us to address fundamental questions about organizations in general (p. 6). Ethical reasoning has factors such as rationality, efficiency, diligence, loyalty, trustworthiness, cooperation, integrity, equality, justice, environmental concerns, and morals. Stakeholders are stockholders, creditors, employees, customers, suppliers, governments, unions, competitors, local communities, and the general public. Per Pearce & Robinson (2004), Ethical standards, therefore, reflect not a universally accepted code, but rather the end product of a process of defining and clarifying the nature and content of human interaction (p. 60). Organizations that follow the protocol of ethics usually remain in business. They have stakeholders that are interested in the day-to-day operations and customers who are repeat purchasers. The Sarbanes-

ETHICS REFLECTION PAPER

Oxley Act of 2002 holds organizations and firms accountable for misleading the government and inappropriate financial records. The Role of Social Responsibility The role of social responsibility in developing a strategic plan considering stakeholders needs is the idea that business has a duty to serve society as well as the financial interest of stockholders. (Pearce & Robinson, 2004, p. 53) Social responsibility has managers concerned with three principal reasons which are: responsiveness to the environment, second, federal, state, and local government regulations, third, responsive corporate social policy may enhance longterm viability. (Pearce & Robinson, 2004, p. 53) Stakeholders know that an organizations main goal is profit or the bottom line. Without profit, stakeholders needs are not met. Managers must recognize the rights of the firms claimants which are the customers, suppliers, investors, and employees. Mission statements must recognize external stakeholders because it embodies what the company believes. Globalization of business has a significant impact on the social responsibility of companies. Organizations incorporate social responsibility because of different cultures and international affairs. My Ethical Perspective My ethical perspective has expanded during my course curriculum while pursing an MBA degree. Ethics and integrity is vital for a company to remain in business. Just about each course of study has included a review of ethics whether in accounting, management, economics, business law, and finance. The University of Phoenix has challenged students to work in teams to accomplish a goal. Managers as well as owners must be aware of the legal ramifications of socially irresponsible behavior. Stakeholders are the lifeline to a business and being honest and promoting ethical standards justifies growth and profitability.

ETHICS REFLECTION PAPER

Conclusion Businesses and organizations must adhere to a set of rules and policies to be successful. The ethical decisions as well as the social decisions must support the organization and society. Companies should tackle negative public images and behavior immediately and adjust guidelines where needed. When companies develop strategic plans, they must consider the importance of ethics and how social responsibility may affect the stakeholders.

ETHICS REFLECTION PAPER

References Mintzberg, H., Ghoshal, S., Lampel, J., & Quinn, J. (2003). The strategy process: Concepts, contexts, cases (4th ed.). Upper Saddle River, NJ: Prentice Hall. Pearce, J. & Robinson, R. (2005). Strategic management: Formulation, implementation, and control (9th ed.). Boston, MA: McGraw-Hill/Irwin.