Social roles and responsibilities of an organization
Strategy ought to be ethical it should be also involving rightful actions to the society. It is an ethical framework and suggests that an entity, be it an organization or individual, has a compulsion to be active for the assistance of society at large. However, every business has an ethical duty to each of the five constituencies.
- Duty to the owner or shareholders: Strategy should ensure sufficient return on owners or shareholders investments.
- Duty to the employees: Strategy should not be disadvantageous to employees. It should consider employee interests such as – compensation, career opportunities, job security, and overall working conditions.
- Duty to the customers: Strategy should try to provide better customer service as well as quality product relatively at a lower price.
- Duty to the suppliers: Suppliers are both partners and adversaries. A company should purchase only goods from suppliers who maintain ethics and performs social responsibility properly.
- Duty to the community: A company should pay taxes the government tries to remove wastages properly, take care of their activities which may violate the environment.