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Introduction

Ethics refers to a set of beliefs and morals that exist among individuals. Ethics varies among groups of individuals and communities because it is established by belief. Therefore, ethics entails proper behavior in the society. Social responsibility on the other hand entails giving back to the various individuals who support the existence of the business especially the community.

This paper explicates the role of ethics and social responsibility in the establishment of sound plans putting into consideration the needs of stakeholders.

Proper codes of conduct and social responsibility play a vital role in developing a strategic plan in the business. They make it easier for the organization to gather essential information relating to the requirements of internal and external stakeholders. With ethics, all stakeholders from both the internal and external environments would respect the business. Thus, they would closely associate with the business eagerly contribute to the development of a strategic plan by articulating their diverse requirements. According to Mintzberg, Lampel, Quinn, & Ghoshal (2003, P 155), social responsibility would enable the organization to determine the various requirements that need to be addressed to both the external and internal stakeholders. The identification of the requirements would lead to the development of a strategic plan because the business would identify the various areas of concern and focus on them. This also boost certainty in the development of these plans as the business engages in activities it is assured of success.

The organization is able to carry out a SWOT analysis from its stakeholders through ethics and social responsibility. Proper conduct and dealings would ensure that the business is informed of its strengths, weaknesses, opportunities, and threats. Through social responsibility and ethics, various stakeholders would help the business in identifying its weaknesses and threats hence enabling it develop a viable strategic plan.  Barney (2007, P 103) points out that it would be able to identify on the areas that need to be improved in order to ensure that there is satisfaction among various individuals. An organization would be able to develop a competitive advantage through social responsibility to stakeholders. It would develop an effective strategic plan because it would have identified the gaps that exist in its operation environment. This is vital because it promotes the success of the business and ensures that lasting plans that would increase profitability are developed.  Pearce & Robinson (2011, P 153) point out that proper codes of conduct and the ability to honor various obligations are the spices for the success of an organization through the development of effective plans through identification of existing gaps in stakeholder satisfaction.

The ethical perspective has evolved gradually throughout the MBA program. The ethical perspective has evolved from catering for the needs of the organization and internal stakeholders alone to the wider community. Earlier in the MBA program, the perspective focused on ensuring that ethics is only upheld when dealing with internal stakeholders because they get involved in the most critical areas of the business. The perspective then gradually evolved by incorporating external stakeholders who are in fact, significant to the success of the business. Therefore, the perspective evolved throughout the MBA program pointing out the need to ensure that ethics is observed as a key success strategy. In order to ensure success in the plan, ethics should be considered in all circumstances.

In conclusion, social responsibility and proper codes of conduct are critical mechanisms in the development of a sound plan while putting into consideration the demands of various stakeholders. Ethical issues refer to the established beliefs and morals that should be observed by the community. Organizations are bound to adhere to these beliefs and morals in all environments they operate. Social responsibility is an obligation that a business organization is required to address to the various stakeholders it deals with. Social responsibility is the process by which an organization gives back to the various groups that promote its operations in the business environment hence ensuring success.

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