Essays on Importance of Ethics, Culture and Social Behaviour in Strategic Decision-Making Coursework

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The paper "Importance of Ethics, Culture and Social Behaviour in Strategic Decision-Making" is a good example of business coursework.   A strategy in simple terms is a long-term plan. Strategic decisions in an organization are therefore those that determine the long-term direction that an organization intends to take. These decisions affect key areas in the organization that determine the success of failure of the organization. Due to their profound impact on the organization, they are made by the most qualified personnel in consultation with other members of staff. The strategic decision-making process is a long one.

It involves an analysis of the organization's resources for example labour, machines and funds. The analysis is meant to establish how to best use the resources to achieve the organization's long-term goals as stated in the mission and vision. The process is complex and requires a unique set of skills. It also requires a clear understanding of the organization's activities and its desired progress. Strategic decision making is the single most important process in any organization since it determines the direction the company takes, it affects how the short term decisions are made and hence the day to day running of the organization.

The purpose of this essay is to critically analyze and justify the importance of ethics, culture and social behaviour in strategic decision making. Ethics These are generally accepted standards of behaviour or morals in a specific environment or society. It relates to values, it determines the wrongness or rightness of actions (Munier, 2011). Ethics is a very broad area of study. Different organizations have different codes of conduct for their employees (Harrington, 2009). What may be unethical in one organization may not be considered unethical in another.

They are several standard ethical practices, which are common in all organizations. Ethics has been a key part of organization activities since the days of the early philosophers. It has always affected how all decisions in the organization are made, strategic decisions not being an exception. Ethics influence the organization in several ways (Davis & Davis, 2010). It affects the quality of goods that the organization produces by affecting the acceptable raw materials, the type of staff to be hired and the acceptable quality standards.

The ethical practice would for examples not tolerate the hiring of an unqualified person to the organization this have a direct impact on the organization's performance and quality standards (Harrington, 2009). An ethical procurement process would ensure the raw material is purchased at the best possible price enabling the company to save it would also ensure the right quality is obtained. Ethics ensures efficiency by emphasizing on time management, making sure employees are hired on merit and setting rules on absenteeism and late coming (Davis & Davis, 2010).

Ethics make employees behave responsibly because of fear of the consequences of unethical behaviour, this saves the organization money that may be spent as a result from unethical behaviour for example expenses of legal suits due to negligence and fraud. Ethics help to establish an organizational culture which boosts employee morale and productivity since they know exactly what is required of them (Munier, 2011). Ethics foster relations in the organization between the employees as none feels exploited or overworked while other benefits from it, everyone’ s hard work is rewarded (Tschappeler & Krogerus, 2011).

Ethics guide the employees in their day-to-day activities limiting the time wasted in decision-making, as acceptable practices are known and in some cases documented in the code of conduct (Harrington, 2009). The ethical code of conduct stipulates disciplinary measures to be taken and hence limits the time that would be wasted in forming disciplinary committees and money that would be wasted in the fighting of legal actions by vindictive employees (Munier, 2011). Ethics ensures that all employees are happy and none finds offence in the others activities since most codes of ethics are inclusive of all employees taking into consideration their cultures, values, beliefs and religious affiliations (Davis & Davis, 2010).

Ethical practices directly affect the profitability of the organization as it determines the way its customers perceive it and its products. A company with good ethical practices would be viewed by its customers as desirable and would, therefore, attract a wider customer base. People are more willing to identify with a company that appears to have cultivated a culture that is in line with their values, beliefs and acceptable standards or behaviour (Munier, 2011).

Ethics also determines the organizations relations with other stakeholders such as creditors. Ethical companies tend to have good relationships with their creditors increasing their creditworthiness, such companies are viewed as reliable and they always keep their word.


Davis, C., & Davis, E. (2010). Managerial accounting for strategic decision making, preliminary edition. New York: John Wiley & Sons

Harrington, J. (2009). Games, strategies and decision making. London: Worth Publishers

Munier, N. (2011). A strategy for using multi-criteria analysis in decision-making: A guide for simple and complex environmental projects. London: Springer Publishers

Nutt, P., & Wilson, D. (2010). Handbook of decision making. New York: John Wiley & Sons

Sinofsky, S., & Lansiti, M. (2009). One strategy: Organization, planning, and decision making. New York: John Wiley & Sons

Tschappeler, R., & Krogerus, M. (2011). The decision book: Fifty models for strategic thinking. London: Profile Books

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