Running head: ETHICS AND SOCIAL RESPONSIBILITY
Ethics and Social Responsibility
March 5, 2018
The Role of Ethics and Social Responsibility in Strategic Planning
Ethics refers to the fundamental moral principles of an individual or organization that
guides that particular organization or individual’s conduct in business. On the other hand, social
responsibility refers to the manner an organization performs its activities with the aim of meeting
its broader obligations toward the society and environment (Dyer et al, 2016). Ethics and social
responsibility guides the undertakings of an organization and informs its decision of not
performing unethical or socially wrong practices. Additionally, strategic planning directs an
organization’s management to set its priorities in tune with the organization’s objectives.
Strategic planning leads to strengthened and focused business operations aimed towards
achieving similar objectives and goals.
In strategic planning, an organization must factor in the probable impact of a particular
decision on various stakeholders. Strategic decision-making should be cognizance of the social
responsibility of the organization to its stakeholders. An organization’s stakeholders include any
person who is affected by the operations of the organization. An organization that is socially
responsible should treat its stakeholders equitably by applying the business principles of equity.
Equity seeks to remedy the challenges that equality consideration may bring on board (Montiel,
A socially responsible business must also be considerate to the environmental and social
impact of its activities. An organization that does not highly regard environmental pollution risks
being a potential danger to the society (Werther et al, 2010). For example, in 2010 BP was held
liable by a court in Louisiana as being grossly negligent in the events that led to a massive oil
spillage in the Gulf of Mexico. The court was of the considered view that British Petroleum Plc
was grossly negligent and its willful misconduct was the primary cause of the discharge of oil
from BP's offshore drilling activities. The oil spill, one of the largest in United States of
America’s history, led to massive environmental degradation and loss of sea life such as fish and
planktons. Therefore, BP’s strategic planning did not include critical aspects of social
responsibility such as environmental awareness hence BP extremely deviated from the standard
of care and consciously disregarded known risks leading to the massive oil spill.
Ethics greatly impact the development of an effective strategic plan. An organization's
strategic planning should encompass the principle of transparency, which is a primary element of
ethics. An organization should promote honesty and transparency in the organization's dealings
leading to better decision-making and sharing of information. Honesty allows the business to
assess potential risks and find practical solutions to the organization's weaknesses and
challenges. With regards to social responsibility, transparency in an organization’s dealings
enhances that organizations credibility towards its external stakeholders. This enhanced
credibility gives an organization a good reputation in its particular industry (Montiel, 2008).
Ethics and social responsibility ensure that a business engages in its profit-making
activities but with due regard to legal and ethical standards. In developing a strategic plan, a
business should seek to promote the ethical standards of respect and fairness to all. An
organization ought to foster an environment that encourages respect of divergent opinions
because it is through constructive comments that intellectual discussions thrive. Divergent
opinions make it possible for a business to have different enriched points of view on a particular
issue. Besides, respect strengthens strategic planning process by improving the relationship
among employees hence better decision-making (Werther et al, 2010). Additionally, the ethical
attribute of fairness is crucial especially when strategically planning on the remuneration and
terms of service of employees.
Preventing ethical violations and encouraging social responsibility can be achieved by
having a strong code of ethics that is firmly embraced by the organization’s corporate culture.
The code of ethics should not only aim at meeting ethical obligations but also should foster
social responsibility and improve relationships with the neighboring communities. When ethical
violations occur within an organization, the management should move with haste in taking the
appropriate disciplinary action. It is important for an organization to apply a consistent
disciplinary code across the organization and eliminate any preferential treatment to employees.
This will set the tone for all employees to abide by the organization’s code of ethics. Besides, an
organization should develop proactive social responsibility strategies such as being involved in
various community-based projects for the benefit if the society (Dyer et al, 2016).
Dyer, Jeffrey H., Godfrey, Paul, Bryce, David (2016). Strategic Management: Concepts and
Cases (1st Ed.). Hoboken, NJ: John Wiley & Sons.
Montiel, I. (2008). Corporate social responsibility and corporate sustainability: Separate pasts,
common futures. Organization & Environment, 21(3), 245-269.
Werther Jr, W. B., & Chandler, D. (2010). Strategic corporate social responsibility:
Stakeholders in a global environment. Sage publications.
November 10, 2015
Recycling and Cost-Saving Initiatives
Board of Directors
In response to the rising cost of traditional energy sources, as well as our nation’s effort to find
more renewable energy, our company will be implementing a number of cost-saving initiatives.
These practices will be in effect immediately at all divisions within the organization.
The first change you will experience concerns your current method of compensation. Paper
checks will no longer be issued through the payroll department. Instead, your paycheck will be
deposited directly into your checking account. This initiative is expected to save the company up
to $14,500 per year in costs related to payroll processing hours, envelopes, postage, office
supplies, printer cartridges, toner, and printer paper. It will also reduce our waste output and
decrease our energy footprint while allowing you to access your pay more quickly.
Another energy-saving procedure that will go into effect immediately concerns after-hours
computer use. The energy.gov website suggests that using the hibernation function can save as
much as $30 per year per computer in energy costs (2015). As a result, all desktop computer
terminals in every office will be set to enter hibernation mode overnight. IT technicians will be
stopping by each workstation during the next 2 weeks to implement these settings on your
In addition to these energy- and cost-saving strategies, recycling initiatives will be implemented.
Containers for several types of renewable materials will be placed throughout the building.
Containers for the following items will be placed in the break rooms, kitchens, and other central
gathering areas on each floor.
Metals: Metal products include items constructed primarily out of aluminum and tin. Examples
include tin cans, aluminum foil, soda cans, and other similar products. Please empty any metal
containers before placing them into the appropriate bin.
Paper: Paper products include cardboard, newspapers, magazines, appropriate packaging
material, junk mail, cartons, envelopes, and small boxes. Larger boxes and/or other over-sized
recyclable containers, e.g., computer/printer boxes, should be placed next to the appropriate bin
in one of the recycling areas.
Plastics: Plastic items include fast-food cartons, some commercial packaging, used notebook
sleeves, pop bottles, and other plastic products. Please empty any plastic containers before
placing them into the appropriate bin.
Recycling and Cost-saving Initiatives
November 10, 2015
At the end of each day, the cleaning crew will remove these materials and deliver them to a local
Thank you very much for your cooperation in helping our company reduce costs and create a
more eco-friendly environment.
Energy.gov. (2015) Energy efficient computer use. Retrieved from
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