Strong business ethics, which include honesty, integrity, and fairness to all, play a critical role in running a successful organization as this function of a business operation allows today’s businesses to characterize the differences between correct and incorrect ethical behavior. Additionally, strong ethical values also help businesses gain a competitive advantage (Johnson, 2008), and it allows them to ensure that every employee is following the ethical standards that have been established by the leaders of his or her organization.
To gain a better understanding of the importance of strong ethical value, this paper will a) explain the ...view middle of the document...
Ensuring a diverse and unbiased organization will allow businesses to increase the odds of attracting a wider variety of future consumers, investors, and employees to their organization, regardless of his or her race, gender, or religion preference. Additionally, maintain a diverse workplace can also have a positive effect on a company’s credibility and ability to become more creative and innovative with their ideas as they will have a larger foundation of people to pick-and-choose from.
* Short-term and Long-term Strategy Measurements: Today’s businesses use measuring tools, such as metrics to evaluate if they are achieving ethical standards, and other business goals or objectives.
Effects of Social Responsibility on Strategy
Corporate social responsibility is a very important to an organization’s economic and social strategy as this aspect of business “is concerned with treating the stakeholders of a company or institution ethically or in a responsible manner” (Hopkins, 2011, para 2). Additionally, social responsibility is also is also important to a company’s success as it helps businesses develop different ideas and policies that will improve the quality of life and service to an organization’s workforce (and their families) and the community in general. To maintain high levels of social responsibility, business managers must continue to take their employees, shareholders, consumers, and business community voice and opinion into consideration when developing and implementing their business strategy.
Effects of Sustainability on Strategy
Sustainability is a concept that consists of both social and economic components and those social and economic components of this concept can have an influence on the value of organization’s products and services to their consumers. Additionally, the concept of sustainability can also have effect an organization’s strategy by influencing things, such as a) the way a company identify their internal issues. B) The way a company gathers their research and classifies them into individual categories. C) The way an organization ranks and implements its priorities and policies into their business strategy (Bansal, & Laughland, 2011).
Some of the main obstacles that businesses must overcome when considering the effects of sustainability on their business strategy include obstacles, such as 1) far too many sustainability metrics that measure (some effective, some ineffective) sustainability and its effect on strategy. 2) Government policies and its effect on short-term and long-term sustainability efforts. 3) Categorizing and prioritizing the more immediate short-term and long-term threats or opportunities that could have the most affect (positive or negative) on the organization.
Types of Shareholders and their Influence
As today’s corporations continue to expand and globalize their business operations into overseas markets, the more influence that shareholders have in the daily business...