Ethics and Social Responsibility
Quality Management

Corporate executives are faced with the challenge of balancing the stakeholder profits with a strong ethical code, but focusing too much on one area will cause the other one to suffer. Technology has made it easier for information about companies to flow freely and ethical failures are quick to be identified by the public. Failure to operate an ethical business could lead to brand failure through negative public exposure. The Strategic plan of a corporation has the potential to impact many people across the world. If a corporation fails to realize its impact of its decisions, it could result in negative effects for stakeholders, surrounding community, and the environment. Ethics refer to the principles of an individual or a group. Social responsibility is how a business performs its activities to meet its goals toward the society and environment, such as by avoiding activities which may be harmful. Strategic planning is an essential step in the corporate world in which senior management defines the organization's strategy, direction and decision making. Ethical values and social responsibility serve an important role in the strategic planning process. Ethics is simply what is right or wrong in the workplace and doing what is right. This is in regard to effects of products or services and in relationships with stakeholders. “Wallace and Pekel explain that paying attention to business ethics is critical during times of fundamental change, times much like those faced now by businesses, both nonprofit or for-profit. In times of fundamental change, values that were previously taken for granted are now strongly questioned. Many of these values are no longer followed” (Chron.com). As a result, there is no clear moral compass to guide leaders through complex situations about what is right or wrong. Paying attention to ethics in the workplace sensitizes leaders and staff to how they should act. Most importantly, paying attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. Another major part of strategic planning is corporate social responsibility, where managers face a varied and increasing demand from stakeholders. “Social responsibility and business ethics are often regarding as the same concepts. However, the social responsibility movement is but one aspect of the overall discipline of business ethics. The social responsibility movement arose particularly during the 1960s with increased public consciousness about the role of business in helping to cultivate and maintain highly ethical practices in society and particularly in the natural environment” (Managementhelp.org). Social responsibility mainly focuses on two areas; internal behaviors, which refers to the way a corporation conducts the day-to-day operations of its core business functions, and external behaviors, which refers to a corporation’s engagement outside of its direct business interest. “Internal behavior planning generally starts in the Human Resource Department. It can be an aid to recruitment and retention. Examples are ‘going green,’ matching employee charitable contributions; creating ‘help the community’ programs, and sponsoring community events. While external behaviors can include the latter three internal behaviors, they differ from internal social responsibility because management and public relations will consider the financial impact of their decisions because of their stakeholders, such as owners and shareholders” (Ehow.com). The situation that happened with Enron is probably one of the biggest