Ethics thus while making a decision, it

Ethics
and social responsibility is a vital part of a business’s uniqueness and niche.

It is necessary for decision makers and planners to create an inclusive plan,
which takes into consideration what the firm’s stakeholders require and what
their needs are. Businesses are responsible for conducting their activities in
an ethical manner in the common market. This is a responsibility that should
always be taken into consideration. Compliance with ethical standards and
taking into consideration of the stakeholders should be priorities in
establishing a balance between the two. This can be achieved by putting in
place different defensive measures.

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Roles
of Ethics and Social Responsibility in Developing a Strategic Plan While
Considering Stakeholder Needs

            Ethics prevail more in an
organization setup than by just being measure or points to note in order not to
break the law or alter it. It is prudent to understand that they are used to
govern actions in that specific unit. They are used to define how to act and
what to do in such situations. This goes a long way in helping the business
with managing risks and complying with the law. Social responsibility is the
conduct in a working environment on how to deal with peers, shareholders,
superiors, and even minors in the organization. Ethics and social
responsibility plays a very vital common ground in coming up with strategies
that can be used to incorporate all specific parties in the organization.

            They have specific roles in
establishing a common plan that incorporates stakeholders and what they might
need or want to contribute. Stakeholders are a vital key in the growth and
development of a firm as they are the source of major resources used in
numerous manners to enable projects and developments in the organization. They
have voting power that can influence the financial and social impact of the
firm. It is thus important, while creating a strategy plan, to include this
group of people. The management should ensure that these strategic decisions
are met after considering how they might affect the shareholders. It is
important to understand that they drive the company in terms of supply, customer-base
and generally all activities that contribute to the business thus while making
a decision, it is in good intent to be able to consider the specific effects
those strategies might have on them. Strategies should be transparent to all to
involve everyone in the processes of decision-making and debate in order to
feed in everyone’s opinion. This is important in creating an environment of
co-relation and improved co-existence and tolerance in the firm. Meetings
provide a leveled field for all members to participate evenly in decisions and
ideas raised. Raising matters independently from all involved parties helps to
improve quality of discussions and decisions reached. Respect as well should be
given to not only shareholders but also all concerned in the policy-making and
decisions. Comments in discussions should remain respectful while considering
how the other people may be affected by those comments. Truthfulness and
fairness should be maintained even among the stakeholders in order to offer
proper mechanisms and plans that can be able to tackle the possible risks and
the impacts they might have on the organization. Members should also be honest
in their ideas and comments.

Example
of Overstepping Ethical Boundaries and Preventative Measure

            Some institutions during the past
and even the present have been on the eye of the public for overstepping
ethical boundaries and have paid dearly for the act. An example of ethical
violation was experienced in the GlaxoSmithKline company is the People’s Republic
of China that was caught in a bribery scandal. According to different sources,
a couple of employees were given orders to offer bribes summing up to over
$400million to Chinese officials. The main objective of this endeavor was for
the Chinese government to raise prices on certain pharmaceutical products sold
in the country. This was likely as a result of greed since the company is a
high profitable institution already. Also, the company itself is a publicly
traded company conducting secret deals with the government. This is an illegal
move that could affect its stakeholders adversely. This thus does not come as a
surprise when their sales drop by 60% since the scandal went public.

            Prevention of ethical violations
begins with a solid code of ethics being adopted in the business field. It is
important for employees to feel the rewards that accompany following ethics. Sometimes
employees are pressured to do that which might not be right and it sure may
lead to violating different ethic codes. A consistent disciplinary code should
be in place to deal with ethical violations when they occur. This should be a
swift strategy to be taken in such cases. It also portrays the message that
ethical violation equals punishment, which will lead many among the organization
from crossing the ethical boarders.