Chapter Three Social Responsibilities, Ethics, and Strategic Planning.

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Presentation transcript:

Chapter Three Social Responsibilities, Ethics, and Strategic Planning

Chapter Focus Recognize the relationship between social responsibility, ethics, and strategic planning. Identify the levels of social responsibility. Discuss how to establish codes of ethics for your business. Suggest ways of influencing the organizational culture of your new business. Recognize the differences between strategic planning and business planning. List the steps in the strategic planning process.

The Pyramid of Social Responsibility ECONOMIC Responsibility Be profitable The foundation upon which all other levels rest. LEGAL Obligations Obey the law. Law is society’s codification of right and wrong. Play by the rules of the game. ETHICAL Responsibility Be ethical. Obligation to do what is right, just, and fair. Avoid harm. PHILANTHROPIC Goodwill Be a good corporate citizen. Contribute resources to the community: improve quality of life. Fig. 3-1

AMA Sexual Harassment Recommendations Have a clear written policy prohibiting sexual harassment. Hold mandatory supervisory training programs on policies and prevention of harassment. Ensure that the workplace is free of offensive materials. Implement a program for steps to take when a complaint of harassment is received. Keep informed of all complaints and steps taken. Make sure the commitment against harassment exists at every level. page 67

Groups Perceived to Have Unethical Standards Fig. 3-2

What Is Acceptable Conduct? Paying suppliers in 60 days but expecting 30 days accounts receivable Inflating your sales to clients and suppliers Stealing clients after being fired Pirating software Asking questions which invade the privacy of job interviewees Writing bad checks Using products on trial basis without intending to purchase Overselling dealers Fig. 3-3

Employee Handbooks Employment Policies. Benefits. Employee Conduct. Glossary. Organization Chart. page 70

The Strategic Planning Process Mission Statement Mission Statement Internal Analysis Strengths and Weaknesses Internal Analysis Strengths and Weaknesses External Analysis Opportunity and Threats External Analysis Opportunity and Threats Competitive Analysis Competitive Analysis Goal Setting Strategies Goal Setting Strategies 4. Strategic Alternatives Strategic Alternatives Control Systems Control Systems 5.6. Fig. 3-4

Competitive Analysis: How to Beat the Competition Image. Location. Layout. Atmosphere. Products. Services. Pricing. Advertising. Sales methods. page 83

3-D-5 Levels of Goals Mission Statement Mission Statement Business Goal Business Goal Business Goal Business Goal Business Goal Business Goal Marketing Goals Marketing Goals Finance Goals Finance Goals Human Resource Goals Human Resource Goals Production Goal Production Goal Marketing Strategies Marketing Strategies Finance Strategies Finance Strategies HRM Strategies HRM Strategies Production Strategies Production Strategies Fig. 3-5