Integration of ethics into strategic management process

Using ethical considerations in strategic decision making will result in the development of the most effective long term and short term strategies. Specifically, ethical criteria must be included as part of the strategic process in before-profit decisions rather than after-profit decisions in order to maximize corporate profits and improve strategy development and implementation. This paper presents a system of decision making to achieve this integration which uses an interest assessment that involves the analysis of the ethical, social and legal obligations of an organization. Attempts are made from a long time to fuse ethics like senior management and social values into strategic management process. Firms are trying to introduce ethical values into strategic management but still integration of ethics is not that much satisfactory. History of Strategic management Period 1960s 1970s 1980s 1990s 2000 Label Definition Conceptualizing Industrial Recourse New of Strategy Strategic Organization Based View Paradigm Management Economics of Strategy for Strategic View of Management Strategy Dominan Corporate Strategic Competitive Resources Learning, t themes Strategy, management Advantage and Knowledge planning content and development capabilities and and process development Innovation growth Rationale Strategy as Evaluation and Five forces Valuable, Dynamic a rule for implementation analysis of rare and strategic making of critical the industry costly to model by decisions aspects of attractiveness imitate which firms formulated to develop resources obtain strategy competitive without valuable advantage close information, through substitutes create generic can be knowledge strategies sources of and sustained accumulate competitive intangible advantage capabilities in a process of learning Strategic SWOT, Value Chain 5 force model Core New concepts, Experience strategic competence integrated tools and curve; choice value information technique Growth system; technology share VRIO; systems Matrix Game

Theory What is strategy? Strategy consists of deciding on the basic long term goals of an enterprise and the adaptation of the courses of action and allocation of resources necessary for carrying out those goals. Strategic decisions are seen to lead to a restructuring of the firm that should yield superior competitive performance. Kenneth Andrews of Harvard business school underlined the importance of business definitions as part of strategy, and the need to determine the companys mission. He developed the SWOT analysis tool to understand how an uncertain environment presents opportunities and threats to which a firm had to adapt its strength and weakness.