Strategy means the skill of managing any affair. It is used to describe a pathway along which the organization moves towards its goals or objectives. A strategy should be ethical. It should involve rightful actions to the society. However, every business has an ethical duty to each of the following five constituencies:
Duty to the owner or shareholders: Strategy should ensure profitable management of the owners’ investment. It should try to provide sufficient return for owners’ or shareholders’ capital.
Duty to the employee’s: Strategy should not be unfavorable to the employees. It should consider employee interests such as – compensation, career opportunities, job security, and overall working conditions.
Duty to the customers: Strategy should be of such type that can ensure better customer service as well as quality product relatively at a lower price. A strategy should also try to meet up the customers’ expectation.
Duty to the suppliers: Suppliers are both partners and adversaries. A company should purchase goods only from the suppliers who maintain ethics and perform social responsibility properly.
Duty to the community: A company should pay taxes to the government, try to remove wastages properly, take care of their activities which may violate the environment.