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Discussion: Impact of Ethics, CSR, and Positive Social Change on Strategy

When a company goes through a controversy involving an ethical or legal violation, negative consequences are bound to follow. Customers may choose different brands because they do not want their purchases to go toward supporting a company that is involved in bad practices. Similarly, employees of the company may leave for a more upstanding company for a number of reasons. They might not want to work for an organization that allowed those violations to occur, or they may feel their employment is in jeopardy because the violations could lead to the company’s undoing. By taking a proactive approach and incorporating ethical values into strategy, companies can better ensure that unethical or illegal actions are less likely to happen and will be in a better position to regain people’s trust if violations do occur.

In this Discussion, you will consider legal precedents and ethical matters, and you will examine their impact on a business’s strategy.

To prepare for this Discussion:

  • Review this week’s Learning Resources on ethics, CSR, and business strategy.
  • Consider the role of legal precedents such as the Foreign Corrupt Practices Act (FCPA) in limiting unethical and illegal business practices. Consider also other ethical matters about which a company might develop policies and practices.
  • Consider global legislative or regulative input on ethical matters about which a company might develop policies and practices (e.g., SOX, King IV, etc.).
  • Review the Academic Writing Expectations: Capstone Courses document, provided in this week’s Learning Resources.

Post a 225- to 300-word (3- to 4-paragraph) analysis of the impact of ethics, social responsibility, and positive social change on a business’s strategy. In your analysis, respond to the following:

  • Is it enough for a business simply to follow the law? What is the role that ethics should play in a business strategy? What are the benefits of incorporating ethics into a business’s strategy?
  • How are practices and policies related to corporate social responsibility and positive social change a reflection of a business’s ethics? What are the potential benefits and risks of having CSR and/or positive social change as part of a business strategy?
  • To support your response, be sure to reference at least one properly cited scholarly source.

Refer to the Week 5 Discussion Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.

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