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Lecture Crafting and executing strategy (15/e): Chapter 10 - Arthur A. Thompson, A. J. Strickland III, John E. Gamble

Chapter 10 - Strategy, ethics, and social responsibility. This chapter includes contents: What do we mean by business ethics? Where do ethical standards come from – are they universal or dependent on local norms and situational circumstances? the three categories of management morality drivers of unethical strategies and business behavior why ethical strategies matter approaches to managing a company’s ethical conduct social responsibility and corporate citizenship strategies. | Strategy, Ethics, and Social Responsibility Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University-Florida Region Linking Strategy to Ethics and Social Responsibility Should there be a link between a company’s efforts to craft and execute a winning strategy and its duties to Conduct activities in an ethical manner? Demonstrate socially responsible behavior by Being a committed corporate citizen? Attending to needs of non-owner stakeholders? Key Issues What Is Business Ethics? Business ethics involves applying general ethical principles and standards to business behavior Ethical principles in business are not different from ethical principles in general Business actions are judged By general ethical standards of society Not by a set of rules businesspeople apply to their own conduct Are Ethical Standards Universal or Dependent on Local Norms? Three schools of thought regarding extent to which ethical standards can be applied . . . Ethical Universalism Ethical Relativism Integrative Social Contracts Theory Concept of Ethical Universalism According to the school of ethical universalism . . . Same standards of what is ethical and what is unethical resonate with peoples of most societies regardless of Local traditions and Cultural norms Thus, common ethical standards can be used to judge conduct of personnel at companies operating in a variety of Country markets and Cultural circumstances Concept of Ethical Relativism According to the school of ethical relativism . . . Different societies/cultures/countries Put more/less emphasis on some values than others Have different standards of right and wrong Have different social mores and behavioral norms What is ethical or unethical Must be judged in light of local customs and social mores and Can vary from one country to another Concept of Integrative Social Contracts Theory According to the integrative social contracts theory, the ethical standards a company should try to uphold are governed by both A limited . | Strategy, Ethics, and Social Responsibility Screen graphics created by: Jana F. Kuzmicki, Ph.D. Troy University-Florida Region Linking Strategy to Ethics and Social Responsibility Should there be a link between a company’s efforts to craft and execute a winning strategy and its duties to Conduct activities in an ethical manner? Demonstrate socially responsible behavior by Being a committed corporate citizen? Attending to needs of non-owner stakeholders? Key Issues What Is Business Ethics? Business ethics involves applying general ethical principles and standards to business behavior Ethical principles in business are not different from ethical principles in general Business actions are judged By general ethical standards of society Not by a set of rules businesspeople apply to their own conduct Are Ethical Standards Universal or Dependent on Local Norms? Three schools of thought regarding extent to which ethical standards can be applied . . . Ethical Universalism Ethical Relativism .