Ethics within the management and planning of strategies
One of George Washington’s most celebrated phrases is “works to keep alive that little spark of celestial fire, consciousness.”In the business world it is important not only general strategies, but general strategies that impact society through social and ethical responsibility. It is the ethics that allows companies to potential their social image. There are some questions that we must answer: what is business management? What is strategy planning? What is corporate governance? What is corporate responsibility? And what is ethical and social responsibility in the management of the strategy?
According to Maldonado (2008), “the business strategy, sometimes also called the strategic management of companies, is the deliberate search for an action plan that develops the competitive advantage of a company and accentuates it, so that it manages to grow and expand itsmarket reducing competition ". Strategic management is composed of four parts: determine what the company is, to carry out an analysis of the company, create the strategy, put it to work and monitor and review it and control it. In determining which and who is the company, you have to ask the following question, what is its vision, mission, its purpose and objectives? A company must be very clear about its reason for being and where it is directed, to be able to elaborate a strategic plan consonical to what it represents. As for the company’s analysis, the SWOT analysis is always necessary. SWOT analysis seeks to establish which are weaknesses, threats, strengths and opportunities of the company. Where you can see the internal and external factors that impact the company (environment and potential of the company). When a company knows what their opportunities are to take advantage of them, and when you know their strengths, you can maintain them and improve them in order to stay competitive in the market. As threats and weaknesses, it allows us to improve as a company and also protect ourselves from possible external factors that can undermine the continuity of the company. In creating the strategy, put it to work and monitor it, once the analysis of a company has been carried out, the strategies leading to achieve the objectives of this, to guarantee the existence of it in the long term and in the phase review it and control itIt seeks to maintain control of the strategies so that their effectiveness is validated and have a feedback to see the achievements or advances of the strategy and if you have to amend them. For Maldonado (2018), “Strategic management must be done in the resources and environment of the company, this management is related to businesses which are similar to marketing, accounting, advertising, etc.”The company must maximize its resources available to achieve good business management, which allows it to develop and implement a successful strategy.
The strategic planning aims to adapt the company to the changes in the environment (Maldonado, 2018). Strategic planning is a process in which the objectives of a company are defined, the potential of this and its environment is analyzed, it is determined what its current situation is and what is the expected situation for the future is projected, to planWhat efforts must be done to stay competitive throughout the company’s life. For Maldonado (2018), "Strategic planning is elaborated by senior management, and requires planning, adopting a continuous decision -making process, deciding in advance what to do, how to do it, when to do it and who will do it".
Corporate governance refers to all those policies established by a company or relevant agencies, whose purpose is to direct, monitor and control the actions carried out by management and other management bodies. According to Vanti, Solana-González, & Seibert. (2018), in its article Corporate governance and corporate governance of IT using Analytic Hierarchy Process in the creation of value, citing Bebchuk & Weisbach (2010) tells us: “The importance of corporate governance (GC) or also called corporate governanceIt is established through interdisciplinary investigations, including management, economic aspects, related to finance, law and accounting, in the fields of public and private organizations ”. A healthy corporate governance maintains the corruption -free business environment and a transparent administration in the eyes of all stakeholders in the company.
Corporate social responsibility refers to that commitment that a company has with the improvement of its environment, its economy and in relation to the social aspect. Companies are increasingly committing to the problems that concern society and contribute to the improvement of the quality of life through their management as a company. They include, as part of their business purpose, commitments that also attribute certain competitive advantages. Consumers usually consolidate, sponsor and sympathize more with those companies that, as part of their goals, have to preserve natural resources, since without a world there would be no life or business. The problem of social responsibility arises when a company establishes its mission. The impact that society exerts on the company and vice versa is greater year after year. According to David (2003), “Social policies directly affect customers, products and services, markets, technology, profitability, its own concept and the public image of a company. The social policy of a company must be integrated into all strategic management activities, including the elaboration of a mission statement. Corporate social policy must be designed and articulated during the formulation of the strategy, establish and administer during the implementation of the strategy and reaffirm or change during the strategy evaluation. The point of view that arises in relation to social responsibility argues that social problems should be treated both directly and indirectly when determining strategies ”. For that reason, companies identify more with social problems and establish social policies based on impacting society. With this, they not only pay for social problems, but establish a "standing" for their brand.
Every day, companies adopt codes of ethics aimed at being more respectful and considered with society and harmonizing their business strategies in such a way that they promote the continuous improvement of society. According to David (2003), “Business ethics is defined as the principles of behavior within companies that guide decision making and behavior. A good business ethic is a prerequisite for an effective strategic direction;adequate ethic is simply a good business!”This social commitment positions companies in an advantageous way, since their corporate image is observed as one that promotes the well -being of citizens and improves their local and internationally business relationships. It is a competitive advantage strategy. David (2003) adds, “Strategies are individuals who have the greatest responsibility to ensure that high ethical principles are promoted and practiced in the company. All decisions of formulation, implementation and evaluation of the strategy have ethical repercussions for force ”. The ethical commitment allows the company to make better decisions in favor of the corporate image and maintain the “standing” before society. Ethics allows us to develop an awareness, what is the best behavior we should have and this applies to companies. Companies through ethics transmit the best values and principles, their customers and future clients. That is why the importance, that the strategies are previously consistent with ethical principles, allowing a better impact on society.
"In acting for sympathy, by compassion, for charity, there is absolutely no moral" (Immanuel Kant, German philosopher and scientist). Undoubtedly, the success of a company is to reach sympathy in future clients, including a strategy that allows you to have an advantage over its competitors. Within the creation of the Action Plan, it is understood strategic management, the ethical principles that allow the company to develop its image at the corporate level must be included.
As one, of the company’s strengths possesses. The objective of strategic planning is to make changes, analyzing the objectives and potential of the company. Corporate governance is to create a corruption -free business environment and a transparent and healthy administration.
Corporate social responsibility allows to maintain the commitment to improve the environment, its economy and in relation to society. Ethical and social responsibility in strategic management is a point that allows companies to potential their image before their social environment. It is this ethical and social responsibility allows companies to have a competitive advantage over their competitors.
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