Ethics And Legal Considerations : Strategic Management

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Ethics and Legal Considerations in Strategic Management Ethics is the process of doing right or wrong. It assists a person in the deciding if something is moral or immoral or if it is socially desirable (Dess, McNamara, & Eisner, 2016, p. 368). A person can get his or her ethics from religious beliefs, heritage, family, the community, education and friends. Organizational ethics is the values, attitudes and behavioral patterns defined by the organizations culture. Organizational ethics determine what is acceptable behavior. Ethics of Strategic Management Strategic management is how an organization uses strategic planning to make decision. Ethical issues can arise in strategic management when a decision is made to advance goals that have…show more content…
“Analytically, a corporation’s code of ethics is the documented, formal, and legal manifestation of that organization’s expectations of ethical behaviors by its employees” (Adelstein & Clegg, 2016, p. 55). The corporate credos and code of conducts provide employees with an understanding of the policies of the organization and the organizational ethical position. For these codes to be effective, all employees of the organization must be aware of them. The visibility of the code of conduct that enables the organization to be judged as ethical. A control that some companies use to ensure employees are being ethical is reward and elevation systems. It is important that the reward system does not encouraging unethical behavior. A reward system could inadvertently cause unethical behavior if rewards are seen as being distrusted on the basis of outcomes. The rewards should be based on goals and objectives are achieved. Examples of items that encourage ethical results are maintain commitment to honesty, truth and ethics in every aspect of behavior, corm with the intent company policy, or is trusted and inspires others to be trusted (Dess, McNamara, & Eisner, 2016, p. 372-373). Another control an organization can implement to ensure uniformity to each occurrence is polies and procedures. Well written policy and procedures, will guide the behavior of employees to act in an ethical manner.
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