Ethical dimensions of management decision-making : a stakeholder values approach to performance and strategy

Abstract

The research shows how organisations can improve their strategic management decision-making, in the competitive global arena, through taking into account not only economic criteria but also ethical and environmental responsibilities. This can be achieved by embracing a shared vision and common values as well as be involved with, and accountable to, stakeholders. More and more, this seems to be the way forward as it is vital for both business and society to co-exist. The ethical dimensions of corporate strategy and business performance are determined and approaches to effectively treat the consequent dilemmas are posited. Good business ethics should become a fundamental purpose rather than just an 'add-on'; this is because they contribute to an organisation achieving a reputation which can be trusted and sustained. This thinking and its implications clearly thread through the articles presented. Various frameworks and models, with guidelines and criteria, are developed to relate corporate social responsibility to performance management to create inclusive value. They are also shown to aid business decision-making in such diverse areas as empowerment, technology, competition, corporate communications, productivity and quality, environmental management and strategic organisational change. This research reveals that there is a definite synergy between business excellence and good ethical practice, when taking into consideration stakeholder expectations. This is because a purely financial model of performance is not appropriate for the 21st century. Thus, a performance-focused management system is the best vehicle for institutionalising targeted changes in the business process and galvanising action founded on high ethical standards.