Ethics in Strategic Management Essay Example | Topics and Well Written Essays - 1500 words

Ethics in Strategic Management - Essay Example Contemporary development in services dealing with finance has prompted stakeholders to question corporations’ moral obligation. These obligations together with business ethics provide important and integral part in the process of strategic management. Early management proponents showed the needs of CEOs to be morally responsible (Barnand, 1938). Executives should be ethical to their customers. Organizations endure the ethical breadth via which their governing is based. Moral responsibility is attached to executives to the people they serve. Likewise, they are responsible for the inspiration via leadership and creation of trust through understanding and common purpose. Those who pioneered strategic thinking advocated for ethics in decision making. Corporate strategy is defined as an organizational process that cannot be separated from behavior, culture and structure of a firm. This provides enterprise strategy basis by definition of context in which those firms operate in both economic and human terms. In the last ten years, there has been the development of ethics and strategic management. Strategic management originated recently and has been accepted in planning and business policy fields. Nevertheless, ethics is a different field that is still evolving, and up to date it has not troubled strategic management academics. Stakeholder's interests have internal worth despite it advancing shareholders interest. From this point of view, an organization’s success should not be viewed as an end but also as a means for advancing stakeholders interest. Ethical analysis is the only way for resolving conflicts in goals and values; it is important in strategic management.... In the 1970s, the technique of strategizing thrived in business schools. Corporate strategy if defined as decisions pattern of a company that reveals and determine its goals, objective or purposes, produces policies and make plans on achievement of the objectives, and defines type of business a company is likely to pursue. While there are similarities between ethics and strategy, there are misunderstandings between the two. Recent thinking in management developments have converged the two. The notion on ethics and strategy are distinct, and separate fields do not hold of recent. Unless it acknowledged that the two should be closely integrated, more problems might be experienced and failures in business. Ethical issues Moral and Morality Problems Morality deals with beliefs, values and norms embedded in a process which define wrong and right for a particular society. The manager is characterized as a moral individual in accordance to the traits. With the moral values, a manager should convey ethical messages, which others can notice. Problems related to morality are associated to harm caused by others. Harming others do not bring any good but prevention of it promotes good. It can be debated that moral issues related to strategic management are complicated because harms caused to other individuals are predictably related to benefits of others. For instance, transformation of an economy to an economy of low wage harms workers who have been displaced but benefits the newly recruited employees and existing stakeholders. Ethical Analysis The policy behind the analysis of ethics can be linked to point of view which claims that principles of ethics are not measures of subjection which vary with economic and cultural conditions. In the real sense, they are first