Ethical considerations
in strategic decision
making
MARIANA BARBARA A56638
VICTORIA SERRA A56642
AIRES GABRIEL RIBEIRO A55071
APRIL 2024
Introduction
Ethical Decision-Making
Frameworks
TABLE OF Leadership Values and
Organizational Culture
CONTENTS Roles of Leadership
Reputation and Brand Image
Conclusion
References
INTRODUCTION
In today's diverse marketing world, the
compatibility of ethical standards across cultures is
a significant concern.
Developing a theory of ethical behavior in
corporate settings based on mission, vision, and
values can improve moral commitments and
interactions.
Marketing managers increasingly prioritize ethical
conduct, responding to public and client
expectations.
Companies must uphold social and ethical
responsibilities to stay competitive and enhance
their brand image in the modern socioeconomic
landscape
Ethical Decision-Making Frameworks
The importance of strategic decision making
The SWOT analysis is a widely used strategic management
tool, assessing a company's strengths, weaknesses,
opportunities, and threats.
It considers both internal factors like strengths and
weaknesses, and external factors like opportunities and
threats.
Managers gather data from various stakeholders to inform
strategic decisions.
In highly competitive environments, effective decision-making
involves considering client demands, market opportunities,
operational practices, competition, and resources
Types of frameworks
Utilitarianism: Deontological Ethics: Principalism:
This school of thought, which is This school of thought, which is
This method is a ethical approach
linked to thinkers like John Stuart frequently connected to Immanuel
commonly used in fields like
Mill and Jeremy Bentham, is Kant, this point of view focuses more
bioethics. It involves identifying and
concerned with maximizing utility, on whether actions are inherently
applying basic ethical principles
or general happiness. When making right or wrong, rather than on the
such as autonomy, beneficence, and
ethical decisions, the course of results they produce. Decisions are
justice when making decisions.
action that results in the greatest made in accordance with this
good for the greatest number of framework on the basis of moral
people is the one that is chosen. obligations or values, such as justice,
autonomy, and honesty.
Leadership Values and
Organizational Culture
Culture, as studied in sociology, psychology, and
anthropology, is a complex concept shaped by the
cherished beliefs and ideals of a community.
It's divided into four levels:
The 'Supra Level' influenced by political and economic
factors;
The 'Macro Level' related to national identity;
The 'Meso Level' involving professional and industry
norms;
The 'Micro Level' encompassing organizational or family
values.
Meso and Microcultures are closer to individuals, while
Supra and Macrocultures are broader aspects of culture
Establishing Accountability
Leaders uphold ethical standards by holding themselves
and others accountable. They cultivate a culture of
accountability where everyone takes personal responsibility
for their actions, admits mistakes, makes amends, and
ensures fairness in decision-making
Promoting Ethical Decision-Making
Supervisors help employees facing moral dilemmas by
promoting open discussions, offering tools for ethical
decision-making, and empowering them to report unethical
behavior. Ethical leaders serve as role models, encouraging
their team to follow suit
Encouraging Transparency
Transparent leaders communicate openly, consider
feedback, and honestly present facts and reasons for
decisions. This fosters honesty, integrity, and trust among
employees, creating a positive work environment
Reputation and
Brand Image
Ethical behavior directly influences a company's
reputation and brand image by shaping how it is
perceived by customers, employees, investors,
and the public.
When a company consistently demonstrates
honesty, integrity, and accountability in its
actions, it builds trust and credibility among
stakeholders. This trust leads to increased
customer loyalty, employee satisfaction, and
investor confidence.
Factors affecting
business reputation
PUBLIC CONSUMER
BRAND IMAGE BRAND LOYALTY
PERCEPTION TRUST
Customers prefer brands
Businesses prioritizing
they perceive as honest
ethics are viewed as Any unethical actions, like
and reliable, especially in Making moral decisions
trustworthy and socially environmental violations,
sectors like healthcare, supports customer loyalty to a
responsible. Customers seek labor abuses, or deceptive
finance, and food where brand. Customers tend to stay
out companies committed marketing, can quickly
trust is vital. Thus loyal despite competition or
to moral values like harm a company's
prioritizing ethics earn price fluctuations when they
sustainability, diversity, reputation and decrease
customer trust, leading to respect the company's ethics.
inclusion, and ethical public trust.
increased sales, loyalty,
sourcing.
and positive feedback.
Conclusion
To conclude, Ethical choices improve public
perception and trust, while unethical
behavior can harm customer confidence and
competitiveness.
To thrive, businesses should prioritize ethics
in decision-making, fostering integrity, and
accountability.
By emphasizing ethical principles and social
responsibility, companies can earn trust,
build a strong reputation, and achieve lasting
success.
References;
Nguyen, S. F. (2017). Business ethics quarterly. Cambridge.
Burke, F. (1999). Ethical decision-making: global concerns, frameworks, and approaches. Public Personnel Management 28.4,
529-540.
Ertosun, Oznur Gulen, and Zafer Adiguzel. (The role of business culture and risk management). Leadership, personal values
and organizational culture. Strategic design and innovative thinking in business operations:.
Giberson, Tomas R., et al. (2009). Leadership and organizational culture: Linking CEO characteristics to cultural values.
Journal of Business and Psychology 24, 123-137.
Hitt, Michael A., and Jamie D. Collins. (2007). Business ethics, strategic decision making, and firm performance. Business
Horizons 50.5.
Kotalik, J. e. (2014). Framework for ethical decision-making based on mission, vision and values of the institution. HEC forum,
Vol. 26.
Mirzai, Asal, Yaser Sobhani Fard, and Alireza Slambolchi. (2016). The branding: a study of brand image, brand associations and
reputation. Advanced Social Humanities and Management 3.1.
Srnka, K. J. (2004). Culture’s role in marketers’ ethical decision making: An integrated theoretical [Link] of
Marketing Science Review 1.4.