Strategic Intent & Strategy

Formulation: Vson, msson and

purpose
Busness denton, ob|ectves and
goas Stakehoders n busness and
ther
roes n strategc management -
Corporate Soca Responsbty,
Ethca and
Soca Consderatons n Strategy
Deveopment.
PRESENTED BY V A UPADHYE
Busness Denton
Busness Denton

Derek Abe dened busness aong 3

dmensons

Customer Groups Who s beng

satsed?

Customer Functon What s beng

satsed?

Aternatve Technooges How the

need s beng satsed?
4

Business Perspective
Business Perspective

Stakeholders
Stakeholders

Business
Business
Environment
Environment
5
Busness perspectve
Busness perspectve

Traditional view
Traditional view

Business as economic institution

Business as economic institution

Business as socio-political
Business as socio-political
institution
institution

System view
System view

Business as multipurpose
Business as multipurpose
institution
institution
Grade 10, Week 1 and 2, Unt 1 6
Busness Stakehoders And
Ther Ams

Owners - Will take a share of the profits.
- Risk takers.
Workers - Employees.
- Need a regular payment.
Managers - Employees.
- High salaries.
Customers - Buy the goods and seri!es.
- Relia"le produ!ts and seri!es.
#oernment - Responsi"le for the e!onomy of the
!ountry.
- $ass the laws.
%he whole !ommunity - Raise the liing standards.
7
Tradtona perspectve

Business as economic institution

Business as economic institution
Business as economic entity that interacts Business as economic entity that interacts
with society only through transaction in with society only through transaction in
the marketplace the marketplace

Business as socio-political institution

Business as socio-political institution
Business as sociopolitical entity that Business as sociopolitical entity that
interacts with society through comple interacts with society through comple
interaction !or increasing wealth and interaction !or increasing wealth and
prosperity o! society prosperity o! society
8
Business as sociopolitical
institution
Business Firm
International
Environment
Changes in
Ideologies &
Values
Increased Govt.
Intervention:

Statutory Law

Admnistrative Law
Upgrading of
Ethical Standard
Increased Influence
of external or public
Interest Group
Changing Att.of
Society toward
usiness
Increased Importance
of Internal
Stakeolder Group
Improved
!ommunication&
Increased Impt of
!edia
9
Business as "ultipurpose
Institution
"arket:
!ompetition
Stakeolder:
#xpectation
Business:

#conomic

Social

$olitical
Government:

$olitical Action

Le%islative Act

&udicial Action

'e%ulatory Act
#(uity
#fficiency
"arket
$rocess
$ublic $olicy
$rocess
#conomic 'esponse
Sociopolitical 'esponse
The Business #ision & "ission
Strategic Vision
Vision is a picture of what the firm Vision is a picture of what the firm
wants to be and, in wants to be and, in
broad terms, what it wants to broad terms, what it wants to
ultimately achieve. ultimately achieve.
Strategic #ision
Together, strategic
Together, strategic
vision & strategic
vision & strategic
mission yield the
mission yield the
insights required to
insights required to
formulate and
formulate and
implement
implement
strategies.
strategies.
The The mission mission specifies specifies the the business business
or businesses in which the firm or businesses in which the firm
intends intends to to compete and the compete and the
customers it intends to serve. customers it intends to serve.
Strategic
ntent ! "ission
(c) Macman & Tampoe 2001 12
What s Strategc Intent?

Vson + Intent
"here we want
to get to
#ow we intend
to get there
Shared #ision --

Creates commonaty of nterests

Reduce day monotony

Provdes opportunty & chaenge

&ision ' Mission
To $e the %rst choice in the printed
communications $usiness& The %rst choice is the
$est choice' and being the best is what (tlanta
)e$ pledges to work hard at beingevery day*
T"+ #ISI,-&doc
vision&ppt
&ision (tatement E)amples
-- *tlanta We" $rinters+ ,n!.
.)hat is our $usiness/0
Mission (tatement
Mission (tatements

#nduring statement of purpose

$istinguishes one firm from another

$eclares the firm%s reason for being

&ision ' Mission
&rofit & vision are necessary to effectively
motivate a wor'force
The Bellevue 1ospital' with respect'
compassion' integrity' and courage' honors
the individuality and con%dentiality o! our
patients' employees' and community' and
is progressive in anticipating and providing
!uture health care services&
Mission (tatement E)ample
-- %he Belleue Hospital
,mportan!e of Mission
Mission
Resour!e *llo!ation
-nanimity of $urpose
Organi.ational Climate
/o!al point for work
stru!ture
Benefits from a strong mission
(o!ial $oli!y ' Mission
Social policy should be integrated in all
strategic(management activities.
"ission should convey the social
responsibility of the firm
Mission
Elements
Customers
Markets
Employees
$u"li!
,mage
(elf-Con!ept
$hilosophy
(urial
#rowth
$rofit
$rodu!ts
(eri!es
%e!hnology
Msson Statement Evauaton
Matrx
COM$ONEN%(
Organization Customers
Products
Services Markets
Concern for
Survival,
Growth,
Profitability Technology

$epsiCo 0es No No 0es No
Ben ' 1erry2s No 0es 0es 0es No

Tim 1ortons
Tim 1ortons
Strategic
Strategic
#ision
#ision )
)
*ur vision is to be
*ur vision is to be
the quality leader in
the quality leader in
everything we
everything we
do.+
do.+
Tim ,ortons
Tim ,ortons
Strategic "ission
Strategic "ission
)
)
*ur guiding mission is to deliver
*ur guiding mission is to deliver
superior quality products and
superior quality products and
services for our customers and
services for our customers and
communities through leadership,
communities through leadership,
innovation and partnerships.+
innovation and partnerships.+
(c) Macman & Tampoe 2001 24
%he $yramid of $urpose
%he language of (trategi! ,ntent
3e!ision Criteria
(trategi! ,ntent
&ision
Mission
$riorities
O"4e!ties *ims
(trategi! ,nitiaties (trategies
(c) Macman & Tampoe 2001 25
Strategc Intent n Practce

Acceptabe to stakehoders

Consstent wth the hstory and

cuture of the enterprse

Must stretch beyond ts present

aspratons and practces

W tend to be based on nspred

guess of the future

Incudes both vson and goas

(c) Macman & Tampoe 2001 26
,nspired guesses
of the future
%he (trategy /ormulation $ro!ess
(trategi! *ssessment
(trategi! Choi!e
(takeholder #roups
(trategi! ,ntent
(urial
$rofit
#rowth
(hareholder &alue
-ni5ue for this
enterprise
Conte)t
History ' Culture
Ownership (tru!ture
Corporate &alues
6eadership
#oals
&ision
/igure 7.8 ,nfluen!es on (trategi! ,ntent
(c) Macman & Tampoe 2001 27
Form & Impact of Strategc
Intent

Be expressed n few words

Pthy and credbe

Pubcsed

Shoud not be a surprse rather

shoud state what s aready known

Inspre empoyees, customers,

suppers and pubc

Gude decson makng

(c) Macman & Tampoe 2001 28
Stakehoders nuence on Strategc
Intent

Any group wth an nterest n the actvtes and

resuts of the enterprse .e., Sharehoders (domnant
stakehoders n commerca enterprses), Customers, Managers, Stah

Inuence tends to vary wth the evers of

power they hod sharehoders tend to be the
most powerfu

Future drecton and current actons often

strongy determned by the drectors vew of the
response of powerfu stakehoders
WHAT IS STRATEGY?
Strategy: 2e%nitions and
"eaning
The concept of strategy has been
borrowed from the mtary and adapted
for use n busness.
In busness, as n the mtary, strategy
brdges the gap between pocy and
tactcs. Together, strategy and tactcs
brdge the gap between ends and
means.
What does strategy do?
Dentons

Strategy refers to the means by

whch pocy s ehected.

3eorge Steiner-456578( "3"T

9E#IE):

Strategy s that whch top management does that s

of great mportance to the organzaton.

Strategy refers to basc drectona decsons, that s,

to purposes and mssons.

Strategy conssts of the mportant actons necessary

to reaze these drectons.

Strategy answers the queston: What shoud the

organzaton be dong?

Strategy answers the queston: What are the ends

we seek and how shoud we acheve them?
Strategy s a term that comes from the Greek stratega,
meanng "generashp."
Strategy (ccording to 1enry "int;$erg-
455<

Strategy s a pan, a "how," a means of

gettng from here to there.

Strategy s a pattern n actons over

tme; for exampe, a company that
reguary markets very expensve
products s usng a "hgh end" strategy.

Strategy s poston; that s, t reects

decsons to oher partcuar products or
servces n partcuar markets.

Strategy s perspectve, that s, vson

and drecton.
Strategy (ccording to =enneth
(ndrews-1arvard Business 9eview

"Corporate strategy s the pattern |tacs

added| of decsons n a company that
determnes and reveas ts ob|ectves,
purposes, or goas, produces the prncpa
poces and pans for achevng those goas,
and denes the range of busness the
company s to pursue, the knd of economc
and human organzaton t s or ntends to
be, and the nature of the economc and
non-economc contrbuton t ntends to
make to ts sharehoders, empoyees,
customers, and communtes
DEFINITIONS

1.A method or pan chosen to brng

about a desred future, such as
achevement of a goa or souton to
a probem.

2. The art and scence of pannng

and marshang resources for ther
most emcent and ehectve use.
)hat is Strategy/
)hat is Strategy/

(n integrated and coordinated set

(n integrated and coordinated set
o! commitments & actions
o! commitments & actions
designed to eploit core
designed to eploit core
competencies and gains and gain a
competencies and gains and gain a
competitive advantage&
competitive advantage&

)hat is
)hat is
Strategy/
Strategy/
)A unified, comprehensive, and integrated plan
designed to ensure that the basic objectives of the
enterprise are achieved. (Glueck, 198!9"
#$he pattern or plan that integrates an organi%ation&s major
goals, policies, and action se'uences into a cohesive (hole.
()uinn, 198"
#A good strateg*+ neutrali%es threats , e-ploits opportunities (hile
capitali%ing on strengths and avoiding or fi-ing (eaknesses.
(.arne*, 199/!1/"
#A pattern of resource allocation that enables firms to maintain or
improve their performance.
Intended, Emergent & Realized Strategies
Intended, Emergent & Realized Strategies
ntended
Strategies -eali.ed -eali.ed
Strategies Strategies
$eliberate $eliberate
Strategies Strategies
#mergent #mergent
Strategies Strategies
/nreali.ed /nreali.ed
Strategies Strategies
Intended, Emergent & Realized Strategies
Intended, Emergent & Realized Strategies
Example # 1: ___________________
Example # 1: ___________________
0rea' into
the "ar'et 1ew 2ds & 1ew 2ds &
channels channels
3ot into the 3ot into the
"ar'et "ar'et
1ew 1ew
4ustomers 4ustomers
Sell to current Sell to current
types of types of
customers customers
Intended, Emergent & Realized Strategies
Intended, Emergent & Realized Strategies
Example # 2: ___________________
Example # 2: ___________________
0rea' into
the "ar'et 0uild "fg. & 0uild "fg. &
$ist. *p.s $ist. *p.s
3ot into the 3ot into the
"ar'et "ar'et
1ew 1ew
4hannels 4hannels
Sell to through Sell to through
current current
channels channels
Thus, strategy can emerge from
)a &attern in the stream of decisions or actions+
>4
>4
st st
8entury Business #alues
8entury Business #alues

Flei$ility
Flei$ility

Speed to market
Speed to market

Innovation
Innovation

Integration
Integration

1andling challenges !rom

1andling challenges !rom
constantly changing
constantly changing
conditions
conditions

1ypercompetiti
1ypercompetiti
on
on

STRATEGY EXAMPLE M&M

Busness Strategy
Corporate Cuture

The beefs and vaues shared by peope

who work n an organsaton

How peope behave wth each other

How peope behave wth customers/cents

How peope vew ther reatonshp wth

stakehoders

Peopes responses to energy use, communty

nvovement, absence, work ethc, etc.

How the organsaton behaves to ts

empoyees tranng, professona
deveopment, etc.
Corporate Cuture

May be drven by:

#ision where the organsaton

wants to go n the future

"ission Statement summary

of the beefs of the organsaton and
where t s now
Corporate Cuture

"ay $e re?ected in:

Atttude and behavour of the eadershp

Atttude to the roe of ndvduas n the

workpace open pan omces, team based
workng, etc.

Logo of the organsaton

The mage t presents to the outsde word

Its atttude to change

Corporate Cuture
What corporate
cuture do you thnk
the foowng
busnesses have
managed to
deveop?
Virgin Group
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The Body Shop
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http://www.sxc.hu
McDonalds
Copyright: alexallied
http://www.sxc.hu
Nike
Copyright: alexbol
http://www/sxc.hu
Strategc Pannng
Strategc Pannng
Frst Stage of Strategc
Pannng may nvove:
Futures Thnkng
Thnkng about what the
busness mght need to
do 1020 years ahead
Strategc Intents
Thnkng about key
strategc themes
that w nform
decson makng
"The thcker the pannng
document, the more useess
t w be"
(Brent Daves: 1999)
a!i"g ti#e to thi"! a"d reflect
#ay be #ore i#porta"t tha" #a"y
busi"esses allow ti#e for$
Copyright: %"tuiti&es, http://www.sxc.hu
Strategc Pannng

The #ision

Communcatng to a stah where the

organsaton s gong and where
t ntends to be n the future

Aows the rm to set goas

(ims and ,$@ectives:

(ims ong term target

,$@ectives the way n whch you

are gong to acheve the am
Strategc Pannng

Exampe:

(im may be for a chocoate

manufacturer to break nto
a new overseas market

,$@ectives:

Deveop reatonshps wth overseas suppers

Identfy network of reta outets

Conduct market research to dentfy

consumer needs

Fnd ocaton for overseas saes team HO

Strategc Pannng

Once the drecton s dented:

Anayse poston

Deveop and ntroduce strategy

Evauate:

Evauaton s constant and the resuts of

the evauaton feed back
nto the vson
Anayss
SWOT

Strengths dentfyng exstng

organsatona strengths

)eaknesses dentfyng exstng

organsatona weaknesses

,pportunities what market

opportuntes mght there be
for the organsaton to expot?

Threats where mght the threats

to the future success come from?
Types of Strategy
Types of Strategy

8ompetitive (dvantage somethng

whch gves the organsaton some
advantage over ts rvas

8ost advantage A strategy to seek out

and secure a cost advantage
of some knd - ower average costs, ower
abour costs, etc.
Types of Strategy

"arket 2ominance:

Acheved through:
Interna growth
Acqustons mergers and takeovers

-ew product development: to

keep ahead of rvas and set the pace

8ontractionAEpansion focus on
what you are good at (core competences) or
seek to expand nto a range of markets?
Types of Strategy

Price +eadership through domnatng

the ndustry others foow your prce ead

3lo$al seekng to expand

goba operatons

9eengineering thnkng outsde the box

ookng at news ways of dong thngs to
everage the organsatons performance
Types of Strategy

Interna busness eve strateges

2ownsi;ing seng oh unwanted parts

of the busness smar
to contracton

2elayering attenng the management

structure, removng bureaucracy, speed up
decson makng

9estructuring compete re-thnk

of the way the busness s organsed
Innovaton
Were gong to create a product
that s brand-new n the
marketpace-a product that no
one ese has. We be the
obvous eader n ths area,
because we have the ony one
of ts knd.
Attack Weak Pont
Were gong to sze up our prmary
compettor, and nd the weak
pont n ther strategy. Then we
can cash n by deveopng the
product that s strong where they
are weak.
Shotgun Approach
Were gong to create a arge number
of new products, and market them
a. After sumcent tme has passed,
we see whch ones are dong we
and whch ones are dong poory.
Then we drop the nehectve ones
and emphasze the ones dong we.
Copy wth a Twst
Were gong to copy the
compettors product, but do t
cheaper. Peope w buy our
product because ts essentay
the same product, |ust ess
expensve.
Budozer
Were gong to open up our product
wth huge fanfare. Were gong to
bow everyone out of the water
wth our marketng btz, our
dstrbuton network, and our
customer support. The competton
w be chokng on our dust.
Meetng the Needs
of Stakehoders
Types of Stakehoder

Owners (I)

Sharehoders (I)

Managers (I)

Stah or empoyees (I)

Customers (E)

Suppers (E)

Communty (E)

Government (E)

I = Interna

E = Externa
Interna and Externa
Stakehoders
Interna stakehoders are those who are
members of the busness organsaton

Owners and sharehoders

Managers

Stah and empoyees

Externa stakehoders are not part

of the rm
But...!

Some groups can be both nterna

and externa stakehoders

Such as stah or sharehoders

who are aso oca resdents

Can you thnk of any others?

Characterstcs of
Stakehoders
1. Owners and Sharehoders

The number of owners and the roes they carry

out dher accordng to the sze of the rm

In sma busnesses there may be ony one

owner (soe trader) or perhaps a sma number
of partners (partnershp)

In arge rms there are often thousands

of sharehoders, who each own a sma part
of the busness
2. Managers:

organse

make decsons

pan

contro

are accountabe to the owner(s)

Characterstcs of
Stakehoders
Characterstcs of
Stakehoders 3. Empoyees or Stah:

A busness needs stah or empoyees

to carry out ts actvtes

Empoyees agree to work a certan number

of hours n return for a wage or saary

Pay eves vary wth sks, quacatons, age,

ocaton, types of work and ndustry
and other factors
Characterstcs of
Stakehoders 4. Customers:

Customers buy the goods or servces produced by

rms

They may be ndvduas or other busnesses

Frms must understand and meet the needs

of ther customers, otherwse they w fa
to make a prot or, ndeed, survve
5. Suppers:

Frms get the resources they need to produce

goods and servces from suppers

Busnesses shoud have ehectve reatonshps

wth ther suppers n order to get quaty
resources at reasonabe prces

Ths s a two-way process, as suppers depend on

the rms they suppy
Characterstcs of
Stakehoders
6. Communty:

Frms and the communtes they exst n

are aso n a two-way reatonshp

The oca communty may often provde many of

the rms stah and customers

The busness often suppes goods

and servces vta to the oca area

But at tmes the communty can fee aggreved by

some aspects of what a rm does
Characteristics of
'ta!eholders
7. Government:

Economc poces ahect rms costs (through

taxaton and nterest rates)

Legsaton reguates what busness can do

n areas such as the envronment
and occupatona safety and heath

Successfu rms are good for governments

as they create weath and empoyment
Characteristics of
'ta!eholders
1
Corporate Citizenship,
Corporate Citizenship,
Social Responsibility,
Social Responsibility,
Responsiveness,
Responsiveness,
and Performance
and Performance
Corporate Soca
Responsbty (CSR)
Preliminary de%nitions o! 8S9

The mpact of a companys actons

on socety

Requres a manager to consder hs

acts n terms of a whoe soca
system, and hods hm responsbe
for the ehects of hs acts anywhere n
that system
Corporate Soca
Responsbty (CSR)
8orporate 8iti;enship 8oncepts

Corporate soca responsibility

emphaszes obgaton and
accountabty to socety

Corporate soca responsiveness

emphaszes acton, actvty

Corporate soca performance

emphaszes outcomes, resuts
Corporate Soca Responsbty
(CSR)
usiness Criticism! Social "es#onse Cycle
Factors in the Societal Environment
Criticism of
Business
Increased concern
for the Social
Environment
A Changed
Social Contract
Business Assumption of Corporate Social
Responsibility
Social Responsiveness, Social Performance,
Corporate Citienship
A !ore Satis"ed
Society
Fe#er Factors
$eading
to Business
Criticism
Increased E%pectations $eading
to !ore Criticism
2-
7
Corporate Soca
Responsbty (CSR)
1istorical Perspective

Economic model the nvsbe hand

of the marketpace protected soceta
nterest

Legal model aws protected soceta

nterests
Corporate Soca
Responsbty (CSR)
1istorical Perspective

Moded the economc mode

Phanthropy

Communty obgatons

Paternasm
Search the Web
!ilton &ershey #as a leading e%ample
of an individual #ho employed
philanthropy, community obligation and
paternalism 'o learn more about
!ilton &ershey and the company,
school and to#n he built, log on to(
http())###*miltonhershey*com)

Corporate Soca
Responsbty (CSR)
1istorical Perspective

What was the man motvaton?

To keep government at arms ength

Search the Web
Businesses are interested in CSR and one
leading business organiation that companies
can +oin is Business for Social Responsibility*
'o learn more about BSR, visit their #eb site
at(( http())###*bsr*org)
Corporate Soca
Responsbty (CSR)
1istorical Perspective
From the 1950s to the present the
concept of CSR has ganed
consderabe acceptance and the
meanng has been broadened to
ncude addtona components
Corporate Soca
Responsbty (CSR)
Evolving #iewpoints

CSR consders the mpact of the

companys actons on socety (Bauer)

CSR requres decson makers to take

actons that protect and mprove the
wefare of socety as a whoe aong
wth ther own nterests (Davs and
Bomstrom)
Corporate Soca
Responsbty (CSR)
Evolving #iewpoints

CSR mandates that the corporaton

has not ony economc and ega
obgatons, but aso certan
responsbtes to socety that extend
beyond these obgatons (McGure)
Corporate Soca
Responsbty (CSR)
Evolving #iewpoints

CSR reates prmary to achevng

outcomes from organzatona decsons
concernng specc ssues or probems,
whch by some normatve standard have
beneca rather than adverse ehects upon
pertnent corporate stakehoders. The
normatve correctness of the products of
corporate acton have been the man focus
of CSR (Epsten)
Corporate Soca
Responsbty (CSR)
8arrollBs Four Part 2e%nition

CSR encompasses the economc,

ega, ethca and dscretonary
(phanthropc) expectatons that
socety has of organzatons at a
gven pont n tme
Corporate Soca Responsbty
(CSR)
8arrollBs Four Part 2e%nition
Understanding the Four Components
Responsibil
ity
Societal
Expectati
on
Examples
Economic Re,uired Be pro"table* !a%imie
sales, minimie costs,
etc*
Legal Re,uired -bey la#s and
regulations*
Ethical E%pected .o #hat is right, fair and
+ust*
Discretiona
ry
(Philanthro
pic)
.esired)
E%pected
Be a good corporate
citien*
Business and (o!iety9 Ethi!s and (takeholder Management+ :E ; Carroll ' Bu!hholt.
Copyright <8==> "y (outh-Western+ a diision of %homson 6earning. *ll rights resered
2-16
Pyramd of CSR
&hilanthropic -esponsibilities &hilanthropic -esponsibilities
Be a good corporate citizen.
#thical -esponsibilities #thical -esponsibilities
Be ethical.
5egal -esponsibilities 5egal -esponsibilities
Obey the law.
#conomic -esponsibilities #conomic -esponsibilities
Be profitable.
Corporate Soca Responsbty
(CSR)
Arguments Against

Restrcts the free

market goa of
prot maxmzaton

Busness s not
equpped to hande
soca actvtes

Dutes the prmary

am of busness

Increase
busness power

Lmts the abty

to compete n a
goba
marketpace
Corporate Soca Responsbty
(CSR)
Arguments For

Addresses soca
ssues busness
caused and aows
busness to be part
of the souton

Protects busness
sef-nterest

Lmts future
government
nterventon

Addresses ssues by
usng busness
resources and
expertse

Addresses ssues by
beng proactve
Corporate Soca Responsbty (CSR)
Busness Responsibilities in the !
st

Century

Demonstrate a commtment to socetys

vaues and contrbute to socetys soca,
envronmenta, and economc goas through
acton.

Insuate socety from the negatve mpacts of

company operatons, products and servces.

Share benets of company actvtes wth key

stakehoders as we as wth sharehoders.

Demonstrate that the company can make

more money by dong the rght thng.
Business Ethics
and Social
9esponsi$ility
C
o
n
c
e
r
n
fo
r
E
th
ic
a
l
a
n
d
S
o
c
ie
ta
l Is
s
u
e
s
Business Ethics
The standards of conduct and mora vaues governng actons
and decsons n the work envronment.
Soca responsbty.
Baance between whats rght and whats protabe.
Often no cear-cut choces.
Often shaped by the organzatons ethca cmate.
Sar$anes-,ley (ct
2002 aw that added oversght for the natons ma|or companes
and a speca oversght board to reguate pubc accountng
rms that audt the nanca records of these corporatons.

,igh profile investigations

and arrests in headlines.

Vast ma6ority of businesses

ethical.

1ew corporate officers

charged with deterring
wrongdoing and ensuring
ethical standards.
T
h
e
C
o
n
te
m
p
o
r
a
r
y
E
th
ic
a
l E
n
v
ir
o
n
m
e
n
t
1ohnson ' 1ohnson We"site
1ohnson ' 1ohnson We"site
ndividuals can ma'e the difference in
ethical e7pectations and behavior
&utting own interest ahead of the
organi.ation
5ying to employee
"isrepresenting hours
Safety violations
nternet 2buse

Technology is e7panding unethical behavior

In
d
iv
id
u
a
ls
M
a
k
e
A
D
iffe
r
e
n
c
e
D
e
v
e
lo
p
m
e
n
t o
f
In
d
iv
id
u
a
l E
th
ic
s
Situation in which a business
decision may be influenced
for personal gain.
Telling the truth and
adhering to deeply felt
ethical principles in
business decisions.
Businesspeople expect
employees to be loyal
and truthful, but ethical
conflicts may arise.
Employees disclosure
of illegal, immoral, or
unethical practices in
the organization.
O
n
-th
e
-Jo

E
th
ic
a
l
D
ile
m
m
a
s
!
o
"
O
r
#
a
n
i$
a
tio
n
s

S
h
a
p
e
E
th
ic
a
l C
o
n
d
u
c
t
,elping employees
recogni.e and reason
through ethical
problems and turning
them into ethical
actions.
E
th
ic
a
l A
c
tio
n
#7ecutives must
demonstrate ethical
behavior in their
actions.
E
th
ic
a
l %
e
a
d
e
r
s
h
ip
(o!ial Responsi"ility
"anagement%s consideration of #rofit, consumer
satisfaction, and societal well$being of equal value
in evaluating the firm%s performance.
4ontributions to the overall economy, %ob
o##ortunities, and charitable contributions and
service.
*rgani.ations measure through social audits.
A
c
tin
#
&
e
s
p
o
n
s
i
ly
to

S
a
tis
fy
S
o
c
ie
ty
A
r
e
a
s
o
f &
e
s
p
o
n
s
i
ility
Public &ealth 'ssues( 8hat to do about inherently dangerous
products such as alcohol, tobacco, vaccines, and steroids.
Protecting the )nvironment( /sing resources efficiently,
minimi.ing pollution.
"ecycling. -eprocessing used materials for reuse.
*evelo#ing the +uality of the ,orkforce( #nhancing quality of
the overall wor'force through education and diversity initiatives.
Cor#orate Philanthro#y( 4ash contributions, donations of
equipment and products, and supporting the volunteer efforts of
company employees.
&
e
s
p
o
n
s
i
ilitie
s
to

th
e
'
e
n
e
r
a
l (
u

lic
The "ight to e Safe( Safe operation of products, avoiding product liability.
The "ight to e 'nformed( 2voiding false or misleading advertising and
providing effective customer service.
The "ight to Choose( 2bility of consumers to choose the products and
services they want.
The "ight to e &eard( 2bility of consumers to
e7press legitimate complaints to the appropriate parties.
&
e
s
p
o
n
s
i
ilitie
s
to

C
u
s
to
m
e
r
s
,ork#lace Safety( "onitored by *ccupational Safety and ,ealth
2dministration.
+uality$of$-ife 'ssues( 0alancing wor' and family through
fle7ible wor' schedules, subsidi.ed child care, and regulation
such as the 9amily and "edical 5eave 2ct of :;;<.
)nsuring ).ual O##ortunity on the /ob( &roviding equal
opportunities to all employees without discrimination= many
aspects regulated by law.
0ge *iscrimination( 2ge $iscrimination in #mployment 2ct of
:;>? protects wor'ers age @A or older.
Se1ual &arassment and Se1ism( 2voiding unwelcome actions
of a se7ual nature= equal pay for equal wor' without regard to
gender.
&
e
s
p
o
n
s
i
ilitie
s
to

E
m
p
lo
y
e
e
s

*bligation to ma'e profits for shareholders.

#7pectation of ethical and moral behavior.

nvestors protected by regulation by the

Securities and #7change 4ommission
and state regulations.
&
e
s
p
o
n
s
i
ilitie
s
to

In
v
e
s
to
r
s