Strategic planning is relevant when corporate ethics are discussed because corporate ethics serve a crucial role in the strategic planning process. Ethics must be incorporated in the strategic planning process so as to build trust on the part of all stakeholders of an organization (Hosmer, 2007). Hence, strategic planning is significant in corporate ethics discussion since there must be a consideration on the role of ethics in maintaining the strategic planning.
From a firm perspective, how would you rank in order of the desirability of the different type of leaders presented in the moral person?
I would rank the different types of leaders as ethical leaders and unethical leaders. Ethical leaders have to fulfill a number of responsibilities to different parties. They have to differing responsibilities to the shareholders, consumers, employees and the society.
Why is culture so important in the study of business ethics?
In one way or another, culture influences ethical decision making of a person. Culture is important in the study of business ethics because different cultures have varying perceptions and interpretations of what is viewed as right or appropriate and what is viewed as wrong or inappropriate (Rashid & Ibrahim, 2008). That is, culture affects the perception of what is ethical. To harmonize business ethics within an organization, it is advisable to understand cultural values of everyone.
Why are codes of ethics so important to stakeholders?
A written promise of an organization’s behavior is provided to the stakeholders through a code of ethics. Despite the fact that code of ethics is not a legally binding document, it outlines to anyone who has a vested concern in the organization what is the organization’s ethical philosophy in regard to what is unacceptable and what is acceptable behavior. Code of conduct helps stakeholders understand exactly what a firm stands for and how it conducts its business. An effective code of ethics should show stakeholders that violators will be punished (Pfarrer, 2005). An organization with a good code of conduct improves the level of trust among important stakeholders.
Why should a firm use the global code of ethics?
A firm should use the global code of ethics to ensure that it complies with all the applicable laws, rules, and regulations everywhere it does its businesses. Global code of ethics ensures that all the employees in a firm are aware of the laws that apply to the firm. Global code of ethics also ensures that firms do not gain competitive advantage through unethical or illegal business practices such as unfair competition law violation and antitrust (Payne, Raiborn, & Askvik, 1997).
Why does not every firm have an ethical officer?
Not every firm have an ethical officer because CEOs, head of Human Resources, and Counsel/Chief Legal advisor or the Company Secretary in some firms acts like the chief ethics officers. In some firms, the CEO is entitled to the overall responsibility for the firm’s ethics strategy. In others, they view the issue of ethics as a legal issue and thus it is the responsibility of Counsel/Chief Legal advisor or the Company Secretary. Other firms see ethics issues as Human Resource issues; hence, the head of HR is given the responsibility (Clark, 2006).