Ethical and Social Considerations in Strategy Development

Ethical Consideration• It means considering the morals or the principles of

goodness, the right and wrong of an action, prior to acting.

• Considering whether or not it is within the rules or standards of right conduct or practice, especially the standards of a profession.

Ethical considerations

• Informed consent• Do no harm• Confidentiality• Secrecy• Only assess relevant components.

Social Consideration• Social considerations, by which is meant factors

concerned with the interests of individuals, groups, communities and society as a whole, and which generally involve interventions into inherent economic mechanisms.

• Social issues are about trends, situations and conflicts in society. Often they do not have a single right or wrong answer.

• Incorporating ethical considerations means using society’s standards of what constitutes right or wrong behavior as the basis for your business’ plans and policies.

• Ethics shape the decisions and actions of each individual in a small business, from the owner on down.

• The owner’s behavior toward customers, employees, the company’s investors, vendors and the community affect the behavior of his employees, who look to him to set the standard.

• Observing high ethical standards is sound business strategy -- resulting in customer loyalty, higher employee retention and a positive image in the industry and within the community.

key ethical considerations in strategic planning include:

• Stakeholder participation• Organizational values• Individual values• Managing change

• When undertaking the process of strategy development This often results in the process in which Board being given the mandate of developing a plan and submitting it to the Board for review and approval.

• Having said, that you can improve your chances of getting the "appropriate strategy" by involving stakeholders.

• All of these help improve the chance that your organization's strategy is developed with the information necessary to make decisions.

• Stakeholder participation is the first acid test.

Stakeholder Participation

Organizational Values• Organizational values are those key statements

that help guide the way an organization pursues its objectives and delivers upon its mission.

• If your organization doesn't have a set of organizational values you should at least determine them as a part of your next strategy development session, if not before.

• If there are any issues or concerns regarding how your strategy fits within those values then you need to reassess your strategy.

• Your organizational strategy should be consistent and support your organization's values.

• Organizational values are the second acid test.

Individual Values

• As senior managers within your organization and board members you each carry a set of personal values.

• To be able to say that you support the strategic direction of the organization it is important that you can also say that the strategy is consistent with your personal values.

• Individual values are the third acid test.• Values:• individuality, responsibility, dedication,

enjoyment/fun, loyalty,, accountability, empowerment, quality, efficiency, dignity, security, influence, learning, compassion, friendliness, discipline/order, optimism, dependability, flexibility.

Change Management Strategy elements:• Each impacts people and how they do their job. Each can suffer

from slower adoption and lower utilization. • Each has risks associated with people not becoming engaged or

resisting the change.• Fourth and final acid test.

1. Situational awareness - understand the change and who is impacted

2. Supporting structures - team and sponsor structures3. Strategy analysis - risks, resistance and special tactics

• While each of the initiatives needs change management to be successful, the right amount and approach for change management will be different.

• The change management strategy defines the approach needed to manage change given the unique situation of the project or initiative.