Ace Health Insurance Inc. (AHI) offers health insurance to millions of customers in the US. The AHI management is concerned about the rising customer support costs at their call center…..
Describe why social responsibility and policy are key issues in strategic management
100 – 150 Word comments on the 2 statements;
1)Describe why social responsibility and policy are key issues in strategic management
HI Professor McDonald and fellow classmates,
Social responsibility and business ethics are important during the entire process of strategic management. Ethics and social responsibility start with a company’s vision and mission statement which is the first step, known as strategy formulation (David et al., 2020). When a company is building its structure and rules management or leaders must develop, communicate, and enforce a code of business ethics for the organization (David et al., 2020). An organization should also prioritize social responsibility as it can boost employee morale in the workplace which can lead to greater productivity and has a positive impact on how profitable the company can be (Murphy, 2022). In the last few years social responsibility has been heavily integrated as part of a company’s business and vision statement. Each company will focus on certain aspects of social responsibility such as protecting the environment, aiding in obliterating poverty, and equal rights. It is up to the company to determine which social responsibility aspects they want to focus on depending on their resources.
After business ethics and social responsibility, (SR) are developed in the strategy formulation process, the second part is strategy implementation. A big part of this process will be reinforcing a company’s accountability to their shareholders and the goals to be a company with ethics and work towards making SR improvements. An organization can have a strong philosophy that motivates charity donations, includes community volunteering, and promotes activism. SR is vital for the community as it can create bonds with employees and the organization. In a recent report, 60% of global millennials are willing to spend more on brands that are sustainable (Ogletree, 2021). Therefore, SR and ethics are crucial to integrate in the strategy implementation phase.
The final step is strategy evaluation which is where an organization assesses how well they have integrated SR and ethics. The organization can gather and examine information about their services, products, activities, and decision-making processes to determine where they stand in relation to their activities and determine if there’s areas they need to address or improve relating to social responsibility and ethics. An organization can even create a sustainability report, which will reveal how their operations impact the natural environment (David et al., 2020).
How will you integrate SR and ethics in your recommendations for your CLC group’s company?
For my CLC group’s company, which is the Walt Disney Company, I have and will continue to integrate social responsibility recommendations and strategies. When we created the new mission statement of Disney, we made a mission statement that incorporated SR. Disney’s original mission statement is, ““to entertain, inform and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds and innovative
technologies that make ours the world’s premier entertainment company” (About the Walt
Disney Company, n.d.). The new mission statement I created was, “At the Walt Disney Company, we strive to ignite curiosity, to question assumptions, think deeply, and challenge ideas through the power of stories. Our goal is to reinvent how people around the globe share knowledge and amplify underrepresented voices. Our stories inspire both children and adults to believe that anything is possible. We are committed to delivering a positive environmental legacy for future generations in all our operations. Together we can take action to make the world a better place.”
A well-designed mission statement is very important for formulating, implementing and evaluating strategy (David et al, 2020). Therefore, changing Disney’s mission statement, expresses concern for the environment, employees, and their philosophy. It helps motivate the organization and the consumers.
2)What global and international considerations should be made when conducting business?
HI Professor McDonald and fellow classmates,
Globalization is the process of conducting business worldwide and strategic decisions are determined based on global profitability rather than simply domestic considerations (David et al., 2020). When conducting business internationally there are many challenges that should be taken into consideration.
The first is a cultural difference which can determine whether the business will be successful or not. The products or services should be able to add value or meet the desires of the local markets internationally, otherwise the company will struggle to stay afloat. Another major consideration is legal and regulatory barriers (Abner, 2015). Which leads to currency exchange rates, access to affordable capital, protection policies for the business, and immigration and employment laws (Abner, 2015). Therefore research should be conducted before operating globally to ensure all the possible restrictions and barriers have a plan. Also, seeking legal counsel would be best to be advised correctly on the local business laws. A global strategy would be necessary to integrate actions against competitors as well (David et al., 2020).
Expanding internationally can be extremely beneficial for the company however, those considerations need to be taken into consideration as if they are not the could lead to major challenges for the company to succeed. Another consideration is local trends in the market globally. It’s imperative to understand trends to ensure the products or services are being marketed properly.