This document discusses business ethics, social responsibility, and environmental sustainability as it relates to strategic management. It provides examples of unethical business practices like misleading advertising and environmental harm. It emphasizes the importance of establishing a clear code of business ethics and developing an ethics culture within an organization. It also addresses issues like bribery, social responsibility, social policy, and policies around retirement as they relate to strategic management.

1. BUSINESS ETHICS/SOCIAL
RESPONSIBILITY/ENVIRONME
NTAL SUSTAINABILITY
STRATEGIC MANAGEMENT CH # 10

2. GROUP
MEMBERS
IRFAN UR REHMAN FA17 – BBA – 069
FAHAD MASOOD FA17 – BBA – 003
WASIF EHSAN FA17 – BBA – 177
TAUQEER AHMAD FA17 – BBA – 167
SAAD IBRAHIM SP17 – BBA – 091
HAFIZ HAMZA ALI ASAD SP17 – BBA – 146

3. INTRODUCTION
After covering the aspects of strategy formulation,
implementation and evaluation, now the firm should focus
on establishing corporate social responsibility strategies.
These strategies refers to actions an organization takes
beyond what is legally required to protect or enhance the
well-being of living things.
Another factor of CSR is sustainability that refers to the extent
that an organization’s operations and actions protect and preserve
rather than harm or destroy the natural environment.

5. EXAMPLE
• For example if a firm is involved in polluting the environment, it is
unethical, irresponsibility and also an illegal action. That firm should
adopt strategies focusing on corporate social responsibility practices.
• Business ethics, social responsibility, and sustainability issues
therefore are interrelated and impact all areas of the comprehensive
strategic management model.

6. BUSINESS ETHICS
Business ethics are defined as principles of conduct within organizations that
guide decision making and behavior.
Adopting proper business ethics by firms is an essential tool for an effective
strategic management practices.
Some of the business ethics that are unethical includes misleading
advertising, causing environmental harm, dumping banned or flawed products
in market, etc.

7. CODE OF BUSINESS ETHICS
• If a firm is involved in unethical business actions, then there arise a
serious need for strategists to develop a clear code of business ethics.
• A code of business ethics is a document that provides behavioral
guidelines that cover daily activities and decisions within an
organization.
• To ensure that the code is properly understood, believed, and
remembered, periodic ethics workshops are needed to inform people to
workplace circumstances in which ethics issues may arise.

8. ETHICS CULTURE
• For having an efficient code of business ethics, a firm should
involve in creating an ethics culture in their organizational
environment.
• Strategists are responsible for developing, communicating, and
enforcing the code of business ethics for their organizations that
helps in creating that ethics culture.

9. ETHICS CULTURE (TRAINING)
So, in order to incorporate strong ethics culture in organization, it is
responsibility of the firm to conduct different training programs.
These training programs should include: -
• Messages from the CEO or owner of the business emphasizing ethical
business practices.
• The development and discussion of codes of ethics.
• Procedures for discussing and reporting unethical behavior.

10. ETHICS CULTURE
Moreover with ethics culture, firms can align ethical and strategic decisions
by following actions: -
• Incorporating ethical considerations into long-term planning
• By integrating ethical decision making into the performance appraisal
process
• By encouraging whistle-blowing or the reporting of unethical practices
• By monitoring departmental and corporate performance regarding ethical
issues.

11. BRIBES
• It is defined as the offering, giving, receiving, or soliciting of any item of
value to influence the actions of an official or other person in discharge of
a public or legal duty.
• A bribe is also referred as gift bestowed to influence a recipient’s conduct.
• That particular gift can be in form of money, property, privilege, object of
value, or influence of a person in an official capacity.

12. BRIBES
• Bribery is considered as one of major crimes in most countries of the
world.
• But in some countries, paying bribes and kickbacks is not considered as
a crime rather it is acceptable when paid for any cause. (such as in
Cambodia, South Sudan, Nigeria, Tajikistan etc.)

13. CAUSES OF BRIBERY IN ORGANIZATIONS
• A major reason for bribery is that most of the workers in the public and
in administration division are paid fairly low wages.
• Because of absence of openings for work freely, there are numerous
individuals who relish to go towards corruption to land the position
offer.
• Decline of personal ethical sensitivity due to lack of education, and
negative learning experiences.

14. EFFECT OF BRIBERY
• One of the most important effects of bribery is that it promotes corruption
and illegal practices.
• It tends to reduces the effectiveness of public investments and the
infrastructure of an organization.
• Bribery is not only detrimental to the economic activities of a business- it
also affects employee morale and performance.

15. CONTINUED…
• When corruption and bribery take place, resources are diverted from their
appropriate and planned for destination.
• When a business finds itself exposed to corruption, it probably experiences
a serious blow to its name and reputation.

16. SOCIAL RESPONSIBILITY

17. SOCIAL RESPONSIBILITY
• Social responsibility is an ethical theory in which organizations are accountable for
fulfilling their civic duty, and their actions must benefit the whole of society.
• It includes different actions a firm takes beyond what is legally required to protect or
enhance the well-being of living things.
• For example Ford plans to reduce their greenhouse gas emissions using their EcoBoost
engine to increase fuel efficiency that benefits the well being of society.

18. CONTINUED…
• Social responsibility of any business must be to make enough profit to
cover the costs of the future because if this is not achieved, no other social
responsibility can be met.
• Strategists should examine social problems in terms of potential costs and
benefits to the firm, and focus on social issues that could benefit the firm
most

19. IMPORTANCE OF SOCIAL RESPONSIBILITY
• It is in the long-term interest of the business to discharge its social obligations
by serving different interest groups such as employees, consumers,
government and citizens.
• A business devoted towards fulfilling its social responsibilities gathers a good
rapport with employees, suppliers, customers etc.
• Efficient social responsibility practices shows a sign of accountability to
investors.

20. CONTINUED…
• If a business organization fails to acknowledge and perform its
social duties, it is bound to lose its freedom and flexibility in the
long-run.

21. SOCIAL POLICY
• For implementing social responsibility practices, firms and businesses develops
a social policy framework that helps them to act upon.
• Social policy embraces managerial philosophy and thinking at the highest level
of the firm.
• Social policy concerns what responsibilities the firm has to employees,
consumers, environmentalists, minorities, communities, shareholders, and
other groups.

22. SOCIAL POLICY & STRATEGIC MANAGEMENT
• Corporate social policy should be designed and articulated during strategy
formulation, set and administered during strategy implementation, and
reaffirmed or changed during strategy evaluation.
• Some admired companies that adopted an appropriate social policy structure are
Starbucks, Walt-Disney, Marriot International, Edison and fortune brands etc.
• These firms strive to engage in social activities that have economic benefits.

23. CONTINUED…
• With Social policy, the organizations should ensure that all matters
of Corporate Social Responsibility must be supported in operations
and administrative matters and are consistent with the company
Stakeholders best interests.
• The social policies of firms also includes Engaging, learning from,
respecting and supporting the communities and cultures with which
they work.

24. SOCIAL POLICIES ON RETIREMENT
• Another aspect of developing social policies that firms consider are social
policies on retirement.
• Some countries around the world are facing severe workforce shortages
associated with their aging populations.
• For example, The percentage of persons age 65 or older exceeds 20 percent in
Japan, Italy, and Germany.

25. SOCIAL POLICIES ON RETIREMENT
• Worker shortages in countries around the world are leading to changes
in retirement and immigration policies.
• Work to retirement has played an important role in shaping the
experience of aging, serving as the boundary point for entry into old
age.

26. THANK YOU