Question

Explain the role of stakeholders in infusing ethics in business.

12 Jun 2017
Answer :
Word Count : 589

Stakeholders increasingly expect organizations to behave ethically and act socially responsible because of the scale and reach organizations possess to address social concerns in innovative and productive ways (Pershing, 2006). The role of ethics and social responsibility in strategic planning include establishing ethics, values, and principles for the organization, addressing globalization, understanding technology, improving environmental processes, improving workplace conditions, sharing ethical business practices and knowledge, acknowledge transcendent values, and develop ethical and socially responsible leaders. By and large, including ethics and corporate social responsibility to the planning process will help the organization consider the social impact the organization’s business and financial decisions have on the public. This helps ensure

that the organization complies with stakeholders’ expectations

and protects them from criticism and unnecessary risks (Hilton & Gibbons, 2005).The role of ethics and social responsibility can be further enhanced during the strategic planning by instituting a code of ethics in the organization. It helps to establish a business behavior that recognizes sincerity, candor, honesty and transparency to promote theo

rganization’s credibility and influence.

In addition, ethics and social responsibility putsmechanisms in place to ensure that state and federal laws are adhered to, and recognize that

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