When explaining the role of ethics and social responsibility in developing a strategic plan, the stakeholders need to be considered. So it’s not just customers and employees now you have these people who have invested in your company. “Each of these interest groups has justifiable reasons for expecting (and often for demanding) that the firm satisfy their claims in a responsible manner.
In general, stockholders claim appropriate returns on their investment; employees seek broadly defined job satisfactions; customers want what they pay for; suppliers seek dependable buyers; governments want adherence to legislation; unions seek benefits for their members; competitors want fair competition; local communities want the firm to be a responsible citizen; and the general public expects the firm’s existence to improve the quality of life. ”
There are two kinds of stakeholders the inside ones and the outside ones, the issues are that they both look at the company mission for a social responsibility towards society and at the same time the financial interests of the stockholders. For example an outside stakeholder may demand that an insider would be subordinated for the well being of the society and vice versa. This starts to get complex by thinking you’re running a company that needs to make a profit to succeed but at the same time must answer to a social responsibility and particular ethics point of view.
An example of a company being socially responsible while making a profit is Toyota. They make the top selling Prius which is the hybrid that leads in developing efficient gas-electric vehicles. There are four types of social responsibilities for which strategic planners must plan, which are: economic, legal, ethical and discretionary. In economic is assumed that the company is providing goods and services at a cost that’s reasonable. In legal responsibilities the company must adhere to the laws that regulate it. In ethical responsibilities the company must have a notion of right and wrong that’s well defined and most of all ethical.
In discretionary responsibilities are those that voluntary and throughout those sometimes the company tries to enhance their image. Ethics “refers to the moral principles that reflect society’s beliefs about the actions of an individual or a group that are right and wrong. ” The perception of ethics in business has currently hit a all time low, this could be due to the never ending recession and others. Throughout the program my view of ethics in the workplace has evolved and is no longer so black and white anymore.
I have learned that the ethical perspective of a individual not necessarily is the same view of a organization. The company has to think about the whole company and also the impact on society. While the individual’s perspective come from him alone, and how he vies society. References: Casio, W. (2005). Managing Human Resources: Productivity, Quality of Work Life, Profits 7th Edition New York Mac Graw-Hill. University of Phoenix. (2010). InterClean Scenario [Computer Software]. Retrieved from University of Phoenix, Simulation, HRM/531 Mondy, R. (2008). Human Resource Management 10th Edition Prentice Hall.