strategic-management

312 PART 5 • KEY STRATEGIC-MANAGEMENT TOPICS
FIGURE 10.1
A Comprehensive Strategic-Management Model
Develop Vision
and Mission
Statements
Chapter 2
Perform
External Audit
Chapter 3
Perform
Internal Audit
Chapter 4
Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability
Establish
Long-Term
Objectives
Chapter 5
Strategy
Formulation
Generate,
Evaluate,
and Select
Strategies
Chapter 6
Implement
Strategies—
Management
Issues
Chapter 7
Chapter 11: Global/International Issues
Strategy
Implementation
Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40.
Implement
Strategies—
Marketing,
Finance,
Accounting, R&D,
and MIS Issues
Chapter 8
Measure
and Evaluate
Performance
Chapter 9
Strategy
Evaluation
by pharmaceutical firms to oversee clinical trials and independently ensure that patient
safety is protected.
Other business actions considered to be unethical include misleading advertising or
labeling, causing environmental harm, poor product or service safety, padding expense
accounts, insider trading, dumping banned or flawed products in foreign markets, not providing
equal opportunities for women and minorities, overpricing, moving jobs overseas,
and sexual harassment.
Code of Business Ethics
A new wave of ethics issues related to product safety, employee health, sexual harassment,
AIDS in the workplace, smoking, acid rain, affirmative action, waste disposal, foreign business
practices, cover-ups, takeover tactics, conflicts of interest, employee privacy, inappropriate
gifts, and security of company records has accentuated the need for strategists to
develop a clear code of business ethics. Internet fraud, hacking into company computers,
spreading viruses, and identity theft are other unethical activities that plague every sector of
online commerce.