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Ethics in Strategic Planning

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Ethics in Strategic Planning
Roger Fair
MGT/498
November 23, 2015
Eligah King

Ethics in Strategic Planning
Ethics and social responsibility is essential to any company, no matter how size. Ethics dictate the actions and decisions of every individual in a company or firm. Ethical standards are set by the owner or CEO and filter down through the rest of the company. The owner’s, or CEO’s, behavior toward employees, customers, the community, investors, and vendors affect the behavior of his employees. The employees look to the CEO to set the standard. “Observing high ethical standards is sound business strategy -- resulting in customer loyalty, higher employee retention and a positive image in the industry and within the community” (Hill, 2015). One of the most well known companies that did not live up ethical standards was Enron.
Ethics come into play on many fronts. When developing a strategic plan ethics must be considered from the earliest stages. If it is the first or the last plan that a company develops does not matter. Long term plans and visions must take into consideration what the ethical base of the mission statement will be. A company that does not take ethics into consideration during the earliest stages of planning opens itself up for failure. It is also important to create a code of conduct to provide direction about how employees should act in situations they may encounter. Ethical choices can sometimes be personally challenging because adhering to a high ethical standard may mean not achieving goals set for them.
Another front where ethical standards are important is customer relations. During the planning process it is important to develop strategies to increase customer satisfaction. This will then lead to repeat business and customer loyalty. Once a customer feels that they have been cheated or treated poorly they will tell others. If...

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