Analysis of Ethics and Social Responsibility in Business Strategy

This report provides an executive summary, introduction, analysis of a case study, and conclusion regarding the importance of ethics and social responsibility in business. The report highlights how ethics and social duties are crucial for developing strategic plans, considering stakeholder needs, and making effective decisions. It discusses the ethical responsibilities of organizations and the consequences of overstepping ethical boundaries, using a case study of dividend payments during a company's weak financial position. The report concludes with the importance of ethical responsibilities in establishing strategic plans and offers a solution to avoid similar ethical dilemmas. The report emphasizes the need for ethical behavior to achieve organizational goals, maintain integrity, and fulfill the requirements of stakeholders. The report also includes a bibliography of cited sources.

Running Head: ETHICS AND SOCIAL RESPONSIBILITY
ETHICS AND SOCIAL RESPONSIBILITY

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ETHICS AND SOCIAL RESPONSIBILITY
Executive summary
This report has been made in order to understand people about the importance of ethical and
social responsibilities in an organization. It also helps in establishing an effective strategy.
This report will illustrate the social responsibility and role of business ethics by identifying
the morale issues and principles of ethics. The company should not take any unlawful or
unethical decision that decrease the overall profit or reduce the reputation of the organization.
The company should obtain social behaviour by operating the social and ethical duties which
will fulfil the requirements and agenda of its shareholders. This report also includes the
measures that need to be taken in order to avoid such situation within an organization.

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ETHICS AND SOCIAL RESPONSIBILITY
Table of content
Introduction................................................................................................................................3
Analysis of case study................................................................................................................3
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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ETHICS AND SOCIAL RESPONSIBILITY
Introduction
Ethics and social duties play a very major role in advancing and establishing the strategic
plan of an organization. The objectives and aims of the organization can be achieved with the
help of such strategic plan which state that the organization is obtaining its ethics. This report
will illustrate the social responsibility and role of business ethics by identifying the morale
issues and principles of ethics that can arise in the business. This report discusses the social
roles and responsibilities have on strategic planning process.
Analysis of case study
The role of ethics and social responsibility in developing a strategic plan while
considering stakeholder needs and agendas
An organization needs to advance the strategic plan that combines the culture of an
organization with the social duties and ethics. The main aim of such duties and role is to cross
the boundary of social advantages. In order to develop the strategic plan of an organization,
it is very important for an organization to maintain ethics and social duties. Ethics are
essential for an organization to establish the key plan. Ethics is very essential in order to take
effective decision in relation to the organizational activities (Doh, Husted, & Yang, 2016).
For example, decision has been made in relation to the reduction in distribution centre, affects
the environment which also affects the buyers and sellers. Thus, social duties and ethics in an
organization help the company to achieve the strategic plans with morale, integrity and
principles of the society (Kolk, 2016). In relation to the stakeholders and their desire and
agenda, the organization has many duties and responsibilities in order to make proper and
effective decision. The company should take an effective decision which will increase the

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ETHICS AND SOCIAL RESPONSIBILITY
sales and goodwill of the company. The company should not take any unlawful or unethical
decision that decrease the overall profit or reduce the reputation of the organization. The
company should obtain social behaviour by operating the social and ethical duties which will
fulfil the requirements and agenda of its shareholders (stakeholders) (Quarshie, Salmi, &
Leuschner, 2016). Ethical responsibilities of an organization advertise the social values by
briefing the shareholders about new changes and techniques. The requirements of the society
are totally co-related with strategic plans cost. This demand should be fulfil in order to
resolve the issues of social representatives (vitell, 2015).
Company overstepping ethical boundaries for stakeholder agendas
Making an ethical decision is a keystone of a good organization. If an organization does not
follow the ethical behaviour or obtaining an unethical behaviour then it will affect the
decisions of the company (Spence, 2016).
A large privately held organization has developed a board of directors in order to provide
proper instruction and guidance to the company. The CEO and Chairman of the organization
was the shareholders, the outside members of the board was not the shareholders. It is very
easy to take a decision related to dividend, when the financial position of the company is
strong. When the financial position of the company is weak, then it is very difficult to take
effective decision, because it can affect the company negatively. The outside board of
directors has many financial responsibilities towards the organization. The main duties of
directors are to act on behalf of all the shareholders (Chell, spence, perrini, & Harris, 2016).
The board of director has crossed the ethical lines when they allowed dividend payments at
the time of the weak financial position of the organization in order to gain the director fees.
Solution to avoid such situation

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ETHICS AND SOCIAL RESPONSIBILITY
The solution to avoid such situation is to make the director’s fees fixed on the basis of
financial performance of the organization and on the basis of contribution. If the
organizations fail to meet the financial act aim then the fees of the directors should not be
paid.
Conclusion
Ethical responsibilities play a very important role in establishing the strategic plan within an
organization. Ethics is very essential in order to take effective decision in relation to the
organizational activities. It has been concluded in the above report that the company should
obtain social behaviour by operating the social and ethical duties which will fulfil the
requirements and agenda of its shareholders. The main duties of directors are to act on behalf
of all the shareholders. The board of director has crossed the ethical lines when they allowed
dividend payments at the time of the weak financial position of the organization in order to
gain the director.

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ETHICS AND SOCIAL RESPONSIBILITY
Bibliography
Chell, E., spence, L., perrini, F., & Harris, J. (2016). social enterpreneur and business ethics.
journal of business ethics, 619-625.
Doh, J., Husted, B., & Yang, X. (2016). Ethics and corporate social responsibility. Business
Ethics Quarterly, 301-315.
Kolk, A. (2016). The social responsibility of international business. Journal of world
business, 23-34.
Quarshie, A., Salmi, A., & Leuschner, R. (2016). Sustainability and Corporate Social
Responsibility. Journal of Purchasing and Supply Management, 82-97.
Spence, L. (2016). Small Business and Social Responsibility. Journal of Business and
Society, 23-55.
vitell, S. (2015). a case of social responsibility . Jounal of business ethics, 767-774.