Managing Ethics

Résumé du document

Consumers growing societal and ethical concern has lead them to primarily focus on a company's social performance, when deciding which one to favour with their spending. Managers, of a growing number of western large scale organizations are aware of this consumer position towards their businesses and brands, and seem determined to consider it in their decisions. According to Hosmer (1994), ethics must be integrated to a planning process because it brings trust to internal and external firms stakeholders. By generating commitment, managers ensure co-operative, innovative and 'strategically directed efforts' and then enhance long term success. Thus, the reason why social capital should be described as a pillar of a company's success might be its social network aspect, its need for reciprocity and credibility in society. Working on a corporate image could bring economic benefits by offering a new competitive advantage valued by consumers. But, one point of view in this discussion will be to prove that such a social orientated strategic tool will only be successful if applied in the long term. This essay will argue why businesses have to consider ethical values as a major factor for long-term success and work on social capital aspects. How managers can apply Corporate Social Responsibility in any decision they undertake? Whether or not ethical and social responsibilities are the ways for designing future strategies for success?

Extraits

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[...] Considering legal duties. Being ethical through respecting customers, employees, and being fair towards society. Finally, being philanthropic i.e. not just through managing a brand image but rather by “giving back” money and time. For instance, getting into action through charitable services to improve society's well being as Patagonia does (Frankental (2001); Katsioloudes et al (2005) ; Lantos (2002) ; Odekerken-Schröder et al (2006)). As seen above, CSR can be applied through different stages but Husted (2003) points out the three most common means of such applications: The charitable contributions which are the transfer of financial and/or other resources to a non-profit organization. [...]

[...] A proper use of CRM sells products, enhances image and motivates employees. However, it can be dangerous if used for short term purposes (Brønn 2001). Duncan and Moriarty (1997), as cited in Simcic and Brønn (2001, p.7) believe that tying the cause to the organisation's mission is “very long term” and that identifying short term effects are not always easy to evaluate, if there are any. Then, long term CRM programs associated with low product involvement leads to greater potential impact on brand loyalty (Oderkerken-Shröder et al 2006). [...]

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