Strategy & principles:- Passing the Test of Moral scrutiny
1. In choosing among strategic alternatives, companies' managers are well advice to embrace actions that are genuine & can pass the test of moral scrutiny.
2. Crafting an ethical strategy means more than staying a company's strategic actions within the confines of what is legal.
3. A strategy is ethical only if it meets two criterions:-
(a). It do not entail actions & behaviors that traverse the line from "can do" to "should not do".
(b). It allows management to complete ethical responsibility to all stakeholders.
4. It is not always easy to classify a particular strategic behavior as absolute ethical or absolute unethical. Whether they are deeming ethical or unethical hinge on how high the bar is set.
5. Senior executives with powerful character & ethical convictions are normally proactive in connecting strategic action & ethics; they forbid the search of ethically questionable business opportunities & maintain all aspects of company strategy reflect high ethical standards.
6. Recent instances of corporate malfeasance, ethical lapses & confusing or fraudulent accounting practices at Enron, WorldCom, Tyco, Adelphia, Dynegy, HealthSouth & other companies depart no room to distrust the harm to a company's status & business that can result from ethical misconduct, corporate misdeeds & even criminal behavior on the part of company personnel.
7. There is modest permanent advantage to unethical strategies & performance & the downside risks can be substantial.