Ethics
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- Date Submitted: 03/19/2011 09:58 AM
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Ethics and Social Responsibility in Strategic Planning
Although neither corporate governance nor business ethics is new, the two fields have only recently converged. Managers and directors are realizing that they are not only obligated to represent shareholders and other stakeholders but also responsible for maintaining the company's ethical culture. Understanding the respective responsibilities of corporate governance, including establishing the ethical culture of the company—is vital for both the board and management to perform effectively. Shareholders, investors, regulators, and the public understand that how directors fulfill their responsibilities is critical in determining an organization's success. Therefore, it is in our best interest to have solid background knowledge of corporate ethics issues.
Now more than ever before, governance and ethics are seriously impacting the financial health of business. Governance contributes legitimacy to a company, and ethics contributes legitimacy to business planning. One without the other simply is not enough. Consider how quickly the investment community loses interest in a business involved in an ethical scandal. Even without a guilty verdict, the publicity is enough to sink the value of a company's stock, send its customers to competitors, and, in some cases, drive it to bankruptcy. Ignoring governance or ethics can quickly result in layoffs, clamoring creditors, and impacted employees.
Ethics and Social Responsibility in Strategic Planning
No company program of ethics and compliance can alone ensure that all directors, officers, and employees will always do the right thing. However, the important "tone at the top" that determines an organization's ethical culture is set at the board and senior management
level. To be their most successful, companies must consider ethics and social responsibility as critical parts, inherent components of strategic plan. Ethical and social...
Although neither corporate governance nor business ethics is new, the two fields have only recently converged. Managers and directors are realizing that they are not only obligated to represent shareholders and other stakeholders but also responsible for maintaining the company's ethical culture. Understanding the respective responsibilities of corporate governance, including establishing the ethical culture of the company—is vital for both the board and management to perform effectively. Shareholders, investors, regulators, and the public understand that how directors fulfill their responsibilities is critical in determining an organization's success. Therefore, it is in our best interest to have solid background knowledge of corporate ethics issues.
Now more than ever before, governance and ethics are seriously impacting the financial health of business. Governance contributes legitimacy to a company, and ethics contributes legitimacy to business planning. One without the other simply is not enough. Consider how quickly the investment community loses interest in a business involved in an ethical scandal. Even without a guilty verdict, the publicity is enough to sink the value of a company's stock, send its customers to competitors, and, in some cases, drive it to bankruptcy. Ignoring governance or ethics can quickly result in layoffs, clamoring creditors, and impacted employees.
Ethics and Social Responsibility in Strategic Planning
No company program of ethics and compliance can alone ensure that all directors, officers, and employees will always do the right thing. However, the important "tone at the top" that determines an organization's ethical culture is set at the board and senior management
level. To be their most successful, companies must consider ethics and social responsibility as critical parts, inherent components of strategic plan. Ethical and social...