Question

One of the biggest reasons for company managers to craft ethical strategies is

A. The importance of not embarrassing company shareholders
B. The scandals, fines, hits to a company's reputation and consequences for executives that come from C. Being put in the public limelight for unethical behavior
C. The imperative of having a strategy that fully complies with the company's code of ethics
D. The requirement for every company's strategy to pass the moral scrutiny of the company's boardof directors
E. So that they can escape the anguish of feeling guilty should their company be calledon thecarpet for engaging in actions/behaviors that some parts of society believe are "out of bounds."

Answer 1

The biggest reason for company managers to craft ethical strategies is typically B. The scandals, fines, hits to a company's reputation, and consequences for executives that come from unethical behavior. Upholding ethical strategies helps avoid negative repercussions such as scandals, financial penalties, damage to the company's reputation, and potential legal consequences, ultimately preserving the company's standing and credibility in the business environment.

Answer 2

Managers should craft ethical strategies to ensure compliance with the company's code of ethics, avoid legal and reputational risks, and maintain trust with all stakeholders.

Step-by-step explanation:

One of the biggest reasons for company managers to craft ethical strategies is the imperative of having a strategy that fully complies with the company's code of ethics. Ethical strategies help ensure that companies act responsibly, uphold their moral obligations to employees, and maintain trust with shareholders and the public. As businesses, especially those that are multinational, grow in size and influence, it becomes increasingly important to align their strategies with ethical principles to avoid scandals, protect their reputations, ensure legal compliance, and promote social, economic, and environmental well-being.

Codes of ethics are crucial for guiding company behavior and decisions. They inform strategies by establishing the permissible actions for an organization and its employees. These codes can cover everything from bribery and discrimination to environmental and social goals. Managers must craft strategies that uphold these ethical standards to foster an environment of trust and maintain the goodwill of their employees, customers, and broader society.

When company strategies neglect ethical considerations, not only do legal and reputational risks increase, but there is also a potential for negative impacts on employees' well-being and societal trust. Ethical failures can lead to public outrage, loss of investor confidence, and a decline in employee morale. Therefore, it is crucial for managers to integrate ethical practices in their strategic planning and decision-making processes.