Ethical strategic management process and decision making
OBJECTIVES: To understand the concept of ethical management. To understand the need for ethical management in business and profession. To compare and contrast between ethical management and strategic management. To understand the need and importance for ethical incorporation in strategic management process and decision making. To suggest the model for Ethical Strategic Management Process. To suggest the model for Ethical Strategic Management Decision Making.
What is Ethical Management? “Ethical management means, with a positive, subjective attitude: observation of corporate ethics; carrying on all economical, legal responsibilities of the corporation; recognizing personal responsibilities as corporation obligations; and first taking ethical aspect into consideration when pursuit of personal gains corporate ethics.”*1 -Korea National Oil Corporation
Need for ethical management in Business: Minimizing business risks. Long-term survival and success. Achieving sustainable development. Strengthening of organizational structure. Increases public value and market share.
ETHICAL MANAGEMENT vs. STRATEGIC MANAGEMENT Strategy can be framed by due intelligence of a person, whereas ethics can be framed by fixing moral values and standards. Strategic management will not help in fixing the standards rather it helps in achieving the standards. But ethical management helps in fixing the standards. And while fixing the standards it considers the achievability, so it fixes the achievable standards. Strategies differ from organization to organization, but ethical practices are universal, it considers the universally accepted code of ethics.
ETHICAL MANAGEMENT vs. STRATEGIC MANAGEMENT Strategic practices are not questionable, whereas the ethical practices are questionable when they are not followed. Strategic management is short term –oriented and achieves short term objective. Whereas ethical management is long term oriented seeking long term success. Strategists find answers to questions like how I can win. What I can do to win? It always finds winning mantra to be success. And on other hand ethicists find answers to questions whether the chosen path is right or not, what is its impact on society and environment, how it affects corporate image and reputation etc.
ETHICAL MANAGEMENT vs. STRATEGIC MANAGEMENT Strategic management is a winning strategy, and ethical management is healthy winning strategy.
NEED AND IMPORTANCE FOR ETHICAL INCORPORATION IN STRATEGIC MANAGEMENT PROCESS AND DECISION MAKING Ethical practices are followed by ethical practices. As we say good follows well. Good ethics is good business. The modern business organization thinks in framing and implementing new strategies to win. But in the process of winning the strategists may forget the ethical issues. After knowing the need and importance of ethical management, there is the serious need to incorporate ethics in strategic management process and decision making.
Ethical management will be a tool for corporate success.And ethical management will be ever chanting mantrafor healthy corporate success No Management?- No Organization. No Strategic management?-No Management success . No Ethical management?- No Long term success and survival. Therefore there is a need to incorporate ethics and strategy with management to enhance the business life cycle. It’s an integrative approach for long term success of business.