Mgt 498 Week 2 Individual Assignment

524 Words3 Pages
Explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Ethics and social responsibility of a business effects wide groups of stakeholders. Stakeholders that include employees, investors, shareholders, suppliers and customers will be influenced by the formulation of strategic plan. The ethical responsibility of the business reaches beyond the responsibilities to stakeholders, it also impact the community and many downstream industries that may be affected by the plan. Ethical considerations must be given by managers as to how the strategic plan will influence the stakeholders. The business organization’s management follows the mainstream behaviors of the society to justify their decisions on choosing their role as being ethically and socially responsible business. Many businesses in a depressed economy have to lay off their employees and close plants, these decisions are difficult to carry out because socially, it will cause hardships for employees or the community. A good example of being ethical and socially responsible business when encountering this situation is when Cisco Systems decided to lay off 6,000 full-time employees, that it acted ethically in providing a unique severance package where these employees it who agreed to work for a local nonprofit organization for a year would receive one-third of their salaries plus benefits and stock options and be the first to be rehired (Wheelen & Hunger, 2010). When investors or shareholders are demanding the business to produce profit, managers must consider how to devise steps for transparency in their strategic plans to report factual business dealings. This consideration is parallel in up keeping high ethical and social responsibilities standards in their strategic planning process. Rules of disclosure and frequency of

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