Moral and Responsibility in Calculated Strategy


The theory of societal accountability puts forward that the responsibilities of private companies to the community spread further than generating revenues. Collective responsibility ponders the socio-ecological consequences of citizens, stakeholders, human resources, and consumer business practices. A tactical approach enables corporations to regulate the practices that apply to be publicly accountable.

It also enables the choice of practices that reinforce the competitive benefit. Businesses develop approaches within their freely integrated environmental and social apprehension in corporate activities. Therefore, this essay describes the moral principles and collective responsibility in growing the calculated strategy bearing in mind the shareholders agendas and needs. The essay also provides a model of one immoral business (Enron Corporation) that surpasses its moral limits for the shareholders agendas before examining the pre-emptive actions of avoiding such immoral circumstances.


The starring roles of social accountability and ethics in increasing the tactical plan in view of the shareholder agendas and needs differ in regard to the values of different firms. In fact, not every corporation possesses similar moral principles and ethical values. During the procedures undertaken in mounting a calculated strategy, any industry ought to account for the needs of the major shareholders. Nevertheless, a number of companies fix the agendas for generating revenue as their main concern.


Ethics can be defined as a mechanism for controlling the company’s good and bad codes with the right obligations and duty. Corporate ethics takes into account an assortment of aspects, such as truth and justice. It also considers the prospects of unbiased reimbursement, culture, public relationships, independence of the customer, promotion, social accountability, and business performance in both overseas and inside a particular nation. Companies must carry out random moral code workshops in order to initiate proper enactment and ensure that workers comprehend the accurate usage of ethics. In general, the ethical code outlines the ideals of conduct expected from both the managers and workforces.

Collective Responsibility

Social accountability constitutes a group that any company should attend to besides controlling the direction and purposes of any business. The supporters of collective responsibility look at the shareholders in a broader perception. They maintain that corporate businesses should promote the societies where they operate and capitalize on the turnover at the same time (Pride, Hughes & Kickapoo, 2008).

In larger prospects, social accountability is employed in capturing procedures, standards, and concerns that corporations must reflect on in their operations. Such emphasis enables the business to moderate any destruction that arises from practices besides generating conservational, financial, and societal worth. The structure for understanding amid shareholders and the company must provide a perfect comprehension of the projected impacts on the stakeholders.

The Interests of Shareholders

The supporters of collective responsibility should have certain clear antecedents in regard to the interests of the stakeholders. Different factions in an organization may be dissatisfied with the business practices at a given moment in view of the existing interests and concerns during the corporation’s operation. The advocates must be aware that this can happen even at the time when the business is proving to be collectively accountable. Hence, social obligation entails the generation of a superior product at concrete costs, including fair handling of purveyors, franchisees, workforces, and stakeholders. Social responsibility also comprises liable action taken in the native environment and society as well as acceptance of exactitude in procedures and responsibilities as expressed by critics both externally and internally.

Overstepping Moral Limits

The contemporary corporate world and community chat mostly over the prevalent scandal at Enron Corporation. Various trustworthy workforces ought to be at the top executives in any company to prevent the occurrence of any scandal. Indeed, this was absent in the case of Enron. In the initial year, Enron’s top managers reported an off-record analysis of the profit and loss accounts based on the proceeds from a long-standing agreement. However, the report ought to have been spread out in several years. The data presented had fabricated evidence on the financial reports since it was merely intended to enable the top executives to achieve superior bonuses. The scandal impacted the flea market for electricity besides triggering the Californian energy catastrophe. Interestingly, only the accountant sent an alarming memorandum to the CEO to prove her enthusiasm by voicing out the unethical issue (Wheelen & Hunger, 2010).

Preventative Measures

The Enron Company mislaid the prospect and dignity of the mission statement and the way put in place towards achieving its set objectives. It becomes costly and challenging for the corporation to regularly audit and monitor the top administrators. Hence, the outstanding way of carrying out business is to initiate a tactical plan and stick to it without any deviation. Nonetheless, the firm should scrutinize its business morals and comprehend that collective accountability can generate profitability. The company stakeholders and other affiliates must also understand and believe that the corporation cares for them together with the merchandise they vend in the markets.


Corporations possess diverse ways of observing social responsibility and business ethics. Certain companies with good morals highly comprehend the worth of handling workers with respect, while some consider that they are merely in the industry to generate income. Prosperous companies embrace the perception that success depends on the technique of applying moral principles all over the business. Equally, success depends on the ways put forward when signing the agreement with other industries while carrying out business globally. Such organizations understand that their collective responsibilities touch beyond the profit boundaries. They are accountable for providing back to society, employees, and shareholders.


Pride, M., Hughes, J., & Kickapoo, R. (2008). Business. Boston, MA: Hough-ton McFarland Company. Web.

Wheelen, L., & Hunger, D. (2010). Concepts in strategic management and business policy. Upper Saddle River, NJ: Pearson Education. Web.

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