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Social Responsibility and Ethics in Marketing
Including Ethics in Strategic Planning
Marketing Textbooks Boundless Marketing Social Responsibility and Ethics in Marketing Including Ethics in Strategic Planning
Marketing Textbooks Boundless Marketing Social Responsibility and Ethics in Marketing
Marketing Textbooks Boundless Marketing
Marketing Textbooks
Marketing
Concept Version 7
Created by Boundless

Promoting Ethical Behavior through the Planning Process

Building ethics into strategic planning is an important consideration of upper management when setting organizational processes and objectives.

Learning Objective

  • Recognize and describe the process for building ethics into strategic planning processes


Key Points

    • Building consistent values and ethics into an organizational culture starts with effective strategic planning.
    • Stakeholder theory is a strong starting point for ethical considerations, as stakeholders like customers, suppliers, governments, communities and shareholders are all impacted by organizational processes.
    • A code of ethics and ethics officers are a great structural addition to strategic planning to ensure organizational alignment with values.
    • Providing all employees and managers with training, and a confidential system of ethical reporting, are strong employee benefits to build a strong ethical culture.

Term

  • Code of Ethics

    An ethical code generally implies documents at three levels: codes of business ethics, codes of conduct for employees, and codes of professional practice.


Full Text

Strategy and Ethics

Setting an organizational strategy, vision and set of values is the starting point of any new venture. Building in a strong sense of ethics, and an alignment with the well-being of all existing stakeholders (and society at large) is an integral aspect of the strategic planning process. The concept of aligning with the needs, ethics and well-being of all stakeholders is referred to as Stakeholder Theory.

Stakeholder Theory

All organizations have a wide variety of stakeholders. Basically, any group, individual or organization impacted by operations is considered a stakeholder. This includes governmental bodies, customers, suppliers, employees, shareholders, financiers, communities, economies and the general ecosystem. A board of directors is often elected to oversee the strategy to ensure alignment with values and ethics.

Stakeholders

This chart underlines a few key stakeholder groups.

This chart underlines a few key stakeholder groups.

Ethical Integration

Building ethical considerations into a business strategy via the planning process is an important element of ethics management. Strategy lays the foundation for how an organization carries out it's operations. Building ethics into strategic planning is important to ensure that every facet of the organization is aligned with the ethos and values of the broader organization.

There are four elements strategic planners should develop when considering ethical alignment:

  1. Developing a Code of Ethics: This serves as a central point of reference for everyone in the organization. This code of ethics should take stakeholders concerns into consideration, and evolve organically over time as the organization grows.
  2. Ethical Training: Investing in training employees and managers in how integrate ethics into their process is a critical aspect of developing a strong ethical culture. Training equips employees and managers with the tools necessary to address ethically complex issues in the workplace.
  3. Situational Advice (Ethics Officers): Having ethics officers available for consultation is a great way to handle ethical issues as they arise internally. Employees and managers may encounter ethical dilemmas that the Code of Ethics and ethics training doesn't address. In these situations, going to an ethics officer to determine best practices is a great strategic resource. The ethics officer can also use these situations to improve the organizations ethical strategy.
  4. Confidential Reporting System: Not all ethical situations are easy to bring up in a professional setting. As a result, organizations should create an infrastructure for anonymous reporting to allow the organization to address problems as they arise without putting anyone on the spot.
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