Reasons why implementation strategies should be viewed from an environmental perspective

BBA 4951, Business Policy and Strategy 1

Course Learning Outcomes for Unit VII Upon completion of this unit, students should be able to:

4. Evaluate policy creation strategies. 4.1 Explain the role of the code of conduct within an organization. 4.2 Identify the differences between whistle blowing and “tattle-tailing.” 4.3 Explain the relationship between personal ethics and business ethics. 4.4 Identify business practices that could be considered bribery. 4.5 Describe the reasons why implementation strategies should be viewed from an

environmental perspective.

Reading Assignment Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability In order to access the resource below, you must first log into the myCSU Student Portal and access the Academic Search Complete database within the CSU Online Library. Christian, L. (2011). A richer shade of green. Nation, 292(26), 22-23. Evers-Manly, S. (2015). An ethical culture: Own it, live it, lead it. National Defense, 99(739), 9. Podgers, J. (Ed.). (2015). Corporations have a role (and a gain) in promoting the rule of law. ABA Journal,

101(8), 67.

Unit Lesson Chapter 10 describes the importance of business ethics, environmental sustainability, and social responsibility in strategic management, including such topics as workplace romance, bribery, pollution abatement, whistle blowing, and philanthropy. Issues related to these topics can significantly bolster or derail the best strategic plan, so Chapter 10 explains how these topics can best be managed. This unit will focus on an organization’s ethics, social responsibilities, and environmental sustainability. Social responsibility is what an organization does (to be preventive rather than reactive) to protect living things. Living things are considered as people, animals, and plants. Sustainability is what the organization does to preserve and protect rather than destroy or harm the environment. Examples of damage include pollution and contamination of a local area where the organization produces goods. Organizations can make efforts to prevent damages and maintain a safe and efficient work environment for their employees, community, and customers. Business Ethics Good business ethics should be one of the main pillars within any organization. Ethics can impact an organization’s image, reputation, reliability, and overall business. The textbook describes good ethics as “good business” (David & David, 2015, p. 305). Thus, bad ethics can cause an organization to fail, even with an effectively planned strategy. Business ethics is defined as the conduct within an organization that guides decision making and procedures. There are seven ethical principles listed at the bottom of page 305, Table 10-1 in your textbook. Think about how these principles are utilized day-to-day within your favorite product or service.


Ethics and Social Responsibility

BBA 4951, Business Policy and Strategy 2



Examples of each is listed below:

Principle Description

Trustworthy Ensure you have a positive image that reflects honesty and is welcoming.

Open-minded Ensure you consider ethical implications both internally and externally.

Honor commitments Ensure all commitments, warranties, and advice is honored.

Do not mislead Avoid false advertisements, exaggeration, and lying to stakeholders.

Responsible Show your community that you care about them.

Eliminate questionable activity

Be transparent and upfront internally and externally to your stakeholders.

Treat others as you would want to be treated.

Simply put, treat others with dignity and respect.

When you have a moment, search the Internet for large corporations that have faced large class action law suits due to legal and moral conduct. Some of these corporations have paid billions of dollars in settlements, some of which are no longer existent. Companies such as Enron and World Com (parent company of MCI) are no longer operating due to their legal breaches and misconduct. These organizations failed due to corporate greed, poor management, and lack of industry oversight. These failed entities were enormous and created secondary and tertiary effects that affected the U.S. and global economy for many years. Other products or services that often mislead consumers are anti-aging and weight loss products. Ethical issues in this area include false credentials, such as educational attainments or experiences. Transparency is critical, especially with a social media driven society that can receive instant news and updates. Social media is extremely effective because it is relatively inexpensive, readily available, and easy to use. Social media can be used to promote a product in a positive or negative manner. Whistle blowing and Bribes Whistle blowing is the legal requirement that states every employee has the legal obligation to report unethical behavior. Sometimes, a whistle blower can receive up to 25% of litigation fines if the organization is found guilty and penalized. One such example was a whistle blower who alerted the IRS regarding offshore accounts that were not being taxed appropriately. The IRS awarded over $100 million to this individual. Other cases included 10s of millions of dollars to whistle blowers. Bribery is offering, giving (including kickbacks), receiving, or influencing an individual or organization with services or products in exchange for influence related to a person’s action. Bribes are considered illegal in the United States, while in some countries, this is normal business and perfectly legal. An example would be a defense corporation bribing a government-contracting officer to ensure they receive direct source funding. This would mean that because the oversight leader is being bribed, he or she is influenced to not allow competing entities the ability to also compete for specific government contracts. Kelly and Williams (2015) point out

“while bribery and corruption are technically illegal in virtually every major country, they are often accepted as a standard way of doing business. Regardless, U.S. corporations and American citizens are subject to prosecution by U.S. authorities for offering bribes in any nation” (p.44).

Within the United States, corruption does exist; however, it is not tolerated. Social and Environmental Responsibly Social and environmental responsibility is an organization’s ability to promote a positive impact to their community. This can be accomplished through charitable support and protective measures that protect the environment. Each year, Fortune magazine publishes a list of companies that are admired or un admired globally. When you have a moment, conduct a simple Internet search, and locate the most recent list. Do you recognize any of the companies? Are you surprised by how they are rated? An example of a corporation that

BBA 4951, Business Policy and Strategy 3



has been socially responsible is the Wal-Mart Corporation. During most major disasters, they have leveraged their mass transportation network to quickly transport needed goods to affected areas. An example of this can be seen in the way that Wal-Mart responded during the aftermath of Hurricane Katrina; Wal-Mart was able to transport food and water to areas that the local and state governments had trouble supporting due to exhausting all support services. Corporations are also adapting to more environmentally-friendly products and services. This can include lower emission vehicles, green products becoming commercially available, and supporting wildlife. The company Life is Good is a perfect example of how organizations can help with some of the social concerns in the world. Watch the video below, and consider how Life is Good betters the world and uses it as a part of their business strategy. NKP Media. (2013). Life is Good: Marketing ethics and social responsibility full [Video file]. Retrieved from Life is Good noticed that media focuses on what is wrong with the world. They did not want to play into the negativity and wanted to be a symbol of optimism. Through their charity, Playmakers, they are able to use their products to “accomplish something that is deeper and more meaning to [their] lives” (NKP Media, 2013, 2:18). Through Play makers, Life is Good is able to help children in need. Life is Good knows that the positive media surrounding their organization will not be enough to keep the company profitable, but they feel that with the right clothing options and their charity, they can find success. Life is Good has even integrated the charity in with their clothing by writing details about the children they help under the visors of hats or on the inside of shirts. This adds a very unique detail to the clothing and makes customers feel good about their purchases.

References David, F. R., & David, F. R. (2015). Strategic management concepts and cases: A competitive advantage

approach [VitalSource Bookshelf version] (15th ed.). Retrieved from

Kelly, M., & Williams, C. (2015). BUSN 7: Introduction to business. Stamford, CT: Cengage Learning. NKP Media. (2013). Life is Good: Marketing ethics and social responsibility full [Video file].Retrieved

Suggested Reading The chapter presentation below will provide you with additional information on this unit’s concepts: Click here to access the PowerPoint version of the Chapter 10 presentation. Click here to access the PDF version of the Chapter 10 presentation.

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