Ethics and Social Responsibility
Strategic Plan, Ethics, and Social Responsibility
Ethical values and social responsibility serve an important role in the strategic planning process. According to Milton Freidman, “[t]here is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Wheelen & Hunger, 2010, p. 72).
With social media and the internet, it is difficult for companies only to focus on profits. Today, companies need to follow Archie Carroll ...view middle of the document...
These tasks will not always be easy but it will be easy to separate the good company’s being socially responsible from the ones that could care less about the rules.
One company that has overstepped their ethical boundaries is Enron and the trouble that they got themselves in for insider trading and putting the stakeholder’s agenda at risk. Enron should not have allowed for individuals to do things outside of their authority and do things that would only benefit themselves and not the entire company. Doing so put the company at risk of violating rules that could cause the company to lose a lot of money and put themselves at risk of breaking a lot of rules that could cost the company their license to practice. Enron should have taken preventative measures to ensure that these violations were not being broken and individuals were not allowed to do whatever they please. The type of measures that they could have taken include, watching over each account that every representative looked at, also not allowing one individual to have the power and control to access any account that they wish.
In conclusion being socially responsible is a matter of not...