Integration Faith and Learning
1.2 Chapter one discusses in-depth what strategy does and provides for an organization. The strategy is initiatives that are the continuous heartbeat of organization ability to critically think and maintain a competitive advantage within a given industry. According to Rothaermel (2017), the strategy is defined as “a set of goal-directed actions a firm takes to gain and sustain superior performance of competitors" (p.7). Although maintaining a competitive advantage is important decisions can either be negative or positive taking into account both ethical and social perspectives in society.
Managers should be concerned about the financial performance because it is a benchmark for constant cash flow to help promote growth and bring in more investors to help push strategic initiatives and sustain the competitive advantage, but society evaluates other qualitative aspects as well. Also, companies should not sacrifice sake financial performance and growth over business ethics. According to Creye (1997),“business needs standards since they control the actions of “cowboys” and allow consumers a mechanism for deciding who to buy from (p.423). Managers are responsible and should be concerned about their company’s public image, policies and procedures, community outreaches, and organizational mission/vision philosophies because all these benchmarks will drive intrinsic business value and translate essential organizational performance into successful quantifiable financial results.
Managers are overall responsible for the successful execution of all corporate strategic initiatives, which could lead to overall success or failure. Regardless, of market standards or perception of something being ethical or not, every manager has a job to do, and the consequences whether positive or negative are byproducts of doing business. As in the case of evaluating whether Walmart should mitigate its negative impact on small locally owned businesses.
Huge retailers like Walmart are always in scholarly writings for having an adverse market entry effect on small locally owned businesses, and a way that Walmart can mitigate adverse effect is by re-evaluating their strategy formulation and strategy implementation. That taking into account if Walmart wants to give up some aspects that make them strategically competitive. Honestly, if Walmart was to choose an alternative strategy formulation, I am not sure how they would benefit from mitigating the effect their retail store have on locally owned businesses. Corporate managers for Walmart have a responsibility to their shareholders to perform and do it at a high level. Therefore, it is not Walmart's job to mitigate the advantage that has made their company successful, but the responsibility of the community leadership to consider the impact Walmart can have in their community. Once again, the adverse effect Walmart has on locally owned businesses it the price to pay for doing business. Walmart would not benefit from any of their strategic initiatives by considering locally owned business in the strategic implementation. I am not sure in the case of Walmart that considering mitigation is a social/ethical issue, vice a byproduct of doing business.
Apple should be concerned about the working conditions at Foxconn and how this problematic perspective could impact the Apple image. Apple is a U.S based company that has to adhere to strict working conditions for American citizens, but when private shareholders have to see harsh working conditions by the company overseas, this becomes a social, ethical issue. Regardless, of the laws that regulate a given country, a brand image is important, and the host company has corporate social responsibility (CSR) to provide a proper image and take account the interest of shareholders. According to Werther and Chandler (2005), “corporate actions that violate societal expectations damage, even destroy, brand image among networked stakeholders who are affluent enough to buy branded products and services” (p.318). Therefore, strategic corporate social responsibilities (CSR) is important, and Apple should consider the social and ethical implications by being affiliated with FOXCOM. Societal issues are just as important as the brand especially when a U.S company is doing business overseas. No corporation want to have a public image of the being the "bad guy."
Biblical Integration
Regardless if business managers make great or horrible decisions the key topic for discussion is organizational ethics? The Bible states, "a good name is to be chosen rather than great riches, and favor is better than silver or gold" (Proverbs 22:1, English Standard Version). This verse speaks volumes of making ethical decisions and doing the ‘right thing". Brand image is important, and companies that take a stance for representing major social and ethical issues in business are game changers in the primary competitive industries.
Human rights issues are important, and companies need to pay close attention to domestic expectations when doing business overseas. From a Christian world perspective, GOD is love, and as Christian, we are to exude and exhibit the same to all people. Therefore, social responsibility extends past a world stance for Christians. Humanity is important and ethical/ social issues are valued differently from a Christian perspective. Therefore, as Christian corporate managers, there is absolute value in having a positive brand image that operates differently toward humankind globally. In most cases, the working conditions overseas foster discrimination, harassment, and sexual issues, and because business is being done in a different country with different standards doesn't make it right. As stated, " a good name" expressed through love for humanity is far greater the riches of the world. The Christian perspective on ethical issues in business can be “game changers” for the world by showing the LOVE of the Lord.
Reference
Creyer, E. H. (1997). The influence of firm behavior on purchase intention: do consumers care about business ethics?. Journal of Consumer Marketing, 14(6), 421-432.
Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill.
Werther, W. B., & Chandler, D. (2005). Strategic corporate social responsibility as global brand insurance. Business Horizons, 48(4), 317-324.