This relies heavily on how the various stakeholders interact financially with a company. “The organization may have a slightly different reputation with each stakeholder according to their experiences in dealing with the organization or in what they have heard about it from others” (Harrison, 2013). Reputation can directly affect corporate worth and dictate how the competitive landscape is defined. In this day and age, social responsibility is playing more and more into how a company is regarded and what its reputation will be. Some of the things that help stakeholders assess corporate reputation could be: * Are they an honest, trustworthy, and respectful company?
The two companies appear to share values related to corporate social responsibility, but employees question whether Ben & Jerry’s previous commitments on issues like product purity and providing a public voice on social issues fit into the new business strategy. The uncertainty is resulting in declines in both morale and employee commitment. Yola Carlough’s strategy as head of Social Mission should be two pronged. First, she must begin a process of realigning aspects of the culture that are in conflict with the current business strategy. This must include addressing core values that are in conflict with the new strategy as well as building a new vision that embraces core values essential to the strategy, like operational efficiency.
Ethics and Responsibility in Strategic Planning Charles Walker MGT/498 Strategic Management December 10, 2012 John Hawes Ethics and Responsibility in Strategic Planning A strategic plan is the direction the organization desires for the future. Strategic planning decides the general course and objective of the business. Many factors are to be considered when making a strategic plan including the ethics and social responsibility of the organization. An organization can actually enhance the financial position of the organization by being socially and ethically responsible. An organization can deter costly government regulations by being socially ethical and responsible “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.”(Wheelen, T. L., & Hunger, J. D. (2010).
Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns.
• Hazardous, but popular products. Added to these, there may arise other ethical challenges when corporations cross boundaries and become multinational companies. Failure of Personal Character A major source of ethical problems is failure of personal character. Companies, though no fault of their own, may recruit workers whose personal values are not desirable, without knowing the worker’s back ground. When they recruit their employees, they look for people with educational qualifications and experience that will match their work profile.
Explain. According to the text information, what are the disadvantages associated with using a group for decision-making? Discuss how the leaders of Wallingford could most effectively combat these disadvantages. 4. The case discusses various methods the owners have applied in attempting to resolve the company’s problems.
Impact of Unethical Behavior Analysis Impact of Unethical Behavior Analysis With a rich history in financial scandals, organizations need to protect themselves against bad publicity. The scandals highlighted the need for legislation. “Congress passed the Sarbanes-Oxley Act (SOX) to provide greater protection against corporate and securities fraud for public companies, mandating stronger internal controls, independent audit committees, the creation of anonymous hotlines, and, importantly, the implementation of safeguards against retaliation.” (Bannon, Ford, & Meltzer, 2010). While the effectiveness of the legislation has been heavily debated, there are still opportunities for unethical behavior. Top executives of companies are hired to improve performance and the pressure to do so can lead them to take unethical action to ensure their success.
Codes of conduct and their qualities Driven by perceptions of accountability and corporate social responsibility (CSR), organisations now see codes of conduct as an integral part of effective ethics programs Ferrell, Fraedrich and Ferrell, Business Ethics: Ethical Decision Making and Cases.. To this end, effective codes of conduct are considered by academics and practitioners to promote six core principles, being according to Arvidsson, "Communication of Corporate Social Responsibility: A Study of the Views of Management Teams in Large Companies." Ferrell, Fraedrich and Ferrell, Business Ethics: Ethical Decision Making and Cases. : 1. Trustworthiness, 2. Respect, 3.
On the contrary, opponents argue that corporations should promote social objective due to its dependence on society. Schwartz and Salla (2012) claim that shareholders may have conscience toward society that goes beyond pure profits. The most likely conclusion reveals that institutions can exercising CSR but only if it
[pic] Principles for Responsible Business INTRODUCTION The Caux Round Table (CRT) Principles for Responsible Business set forth ethical norms for acceptable businesses behaviour. Trust and confidence sustain free markets and ethical business practices provide the basis for such trust and confidence. But lapses in business integrity, whether among the few or the many, compromise such trust and hence the ability of business to serve humanity’s needs. Events like the 2009 global financial crisis have highlighted the necessity of sound ethical practices across the business world. Such failures of governance and ethics cannot be tolerated as they seriously tarnish the positive contributions of responsible business to higher standards of living and the empowerment of individuals around the world.