STRATEGIC MANAGEMENT PAPER

STRATEGIC AND ETHICS

Lecturer :

Dr. Ir. Syahrial Shaddiq, M.Eng., M.M.

Made by :

Virrel Alif Daffa (2210312310036)

Ahmad Solihin (2210312310039)

MANAGEMENT

INTERNATIONAL CLASS

ECONOMICS AND BUSINESS FACULTY

UNIVERSITAS LAMBUNG MANGKURAT

 PREFACE

Praise is given to the presence of Allah SWT for all His mercy so that this paper was
successfully compiled to completion. Do not forget to thank those who have contributed by
providing assistance, both in the form of money and material.

I really hope that this paper can increase students' knowledge and enjoyment. However, I
hope to learn more about it so that I can apply it in my daily life.

As a student, I realized many challenges in the learning process due to lack of knowledge
and experience. I really look forward to constructive criticism and input from readers for
the perfection of this paper.

Banjarmasin, 26 April 2024

Authors

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 TABLE OF CONTENT

PREFACE ...........................................................................................................................................ii

TABLE OF CONTENT .................................................................................................................... iii

CHAPTER I ...................................................................................................................................... 2

INTRODUCTION............................................................................................................................. 2

1.1 BACKGROUND ......................................................................................................................... 2

1.2 PROBLEM STATEMENT ......................................................................................................... 3

1.3 PURPOSE OF PAPER................................................................................................................ 3

CHAPTER II ..................................................................................................................................... 4

CONTENT ......................................................................................................................................... 4

2.1. DEFINING STRATEGIC THINKING .................................................................................... 4

A. Key Components of Strategic Thinking .............................................................................. 4

2.2 DEFINING ETHICS................................................................................................................... 5

2.3 THE IMPORTANCE OF STRATEGIC AND ETHICS .......................................................... 6

CHAPTER III ................................................................................................................................... 7

CLOSING .......................................................................................................................................... 7

3.1 CONCLUSION............................................................................................................................ 7

3.2 SUGGESTION ............................................................................................................................ 8

REFERENCE .................................................................................................................................... 9

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 CHAPTER I
INTRODUCTION

1.1 BACKGROUND

In today's fast-paced and ever-evolving business landscape, companies are constantly faced
with the challenge of navigating the complex intersection of strategy and ethics. As
organizations strive to achieve their goals and stay competitive, they must also ensure that
their actions align with their values and respect the rights and dignity of all stakeholders. This
delicate balance is crucial for building trust, maintaining a positive reputation, and ultimately,
driving long-term success.

Strategic thinking is essential for any organization looking to achieve its objectives. It
involves analyzing the internal and external environment, identifying opportunities and
threats, and developing a clear plan of action to capitalize on the former and mitigate the
latter. A well-crafted strategy can help a company stay ahead of the competition, adapt to
changing market conditions, and create value for its customers and shareholders.

However, strategic decision making is not just about achieving short-term gains or
maximizing profits. It must also be guided by a strong sense of ethics and a commitment to
doing what is right. This means considering the potential impact of our actions on all
stakeholders, including employees, customers, suppliers and wider society. This means being
transparent, accountable and responsible in our business practices, and being willing to make
difficult decisions when they align with our values.

Unfortunately, many companies have learned the hard way that ignoring ethics can have
severe consequences. From financial scandals to environmental disasters, the fallout from
unethical behavior can be devastating. Not only can it damage a company's reputation and
lead to financial losses, but it can also erode trust and undermine the very fabric of society.

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1.2 PROBLEM STATEMENT
Problem statement of this paper are:

1. What is strategy?

2. What is etchics?

3. What is the importance of ethical consideration?

4. What are the keys elements of decision making?

1.3 PURPOSE OF PAPER

Purpose of this paper are:

1. Explain what is strategy

2. Explain what is ethics

3. Explain what is the importance of ethical consideration

4. Explain what are the elements of decision making

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 CHAPTER II
CONTENT

2.1. DEFINING STRATEGIC THINKING

Strategic thinking is a mental or thinking process applied by an individual in the context of

achieving a goal or set of goals. It involves the generation and application of unique business
insights and opportunities intended to create competitive advantage. Strategic thinking is
different from strategic planning, as the former occurs on a regular basis as part of daily
activities, while the latter occurs periodically

A. Key Components of Strategic Thinking

• Anticipating Opportunities and Challenges: Strategic thinking involves anticipating
opportunities and challenges and utilizing that knowledge to guide the organization
• Understanding the Bigger Picture: It means seeing and understanding the bigger
picture of what the organization is, where it needs to go, and how it will get there
• Fostering Strategic Discussions: The effective leader needs to foster strategic
discussions and, in so doing, strategic thinking, acting, and learning in the
organization
• Tools for Analysis: Strategic thinking includes the use of various tools for analysis,
such as SWOT analysis, to identify and clarify the organization's strengths,
weaknesses, opportunities, and threats
• Strategic Purpose: Strategic thinking involves understanding the organization's
strategic purpose or mission, which is the "heart of blueprints for the future"
• Values and Vision: It also involves understanding the organization's values and vision,
which guide the team's essential reason for existence
• Key Goals and Action Planning: Strategic thinking includes setting key goals and
developing action plans to achieve them

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2.2 DEFINING ETHICS

Ethics, derived from the Greek word "ethos" meaning "character," refers to a system of
accepted beliefs that control behavior, particularly based on morals. It encompasses well-
founded standards of right and wrong that prescribe what humans ought to do, often in terms
of rights, obligations, benefits to society, fairness, or specific virtues. Ethics involves the
study and development of one's ethical standards, requiring continuous examination of moral
beliefs and conduct to ensure they are reasonable and well-founded. It is not solely based on
feelings, religious beliefs, or adherence to laws, but rather on consistent and well-founded
reasons that guide behavior towards what is morally good and right.

Ethics is a complex and multifaceted field that encompasses various aspects of moral
philosophy, including moral principles, moral values, moral norms, and moral character. It is
concerned with the nature of morality, the basis of moral judgments, and the moral
implications of human actions. Ethics is not limited to individual moral behavior but also
extends to the moral principles and values that guide institutions, organizations, and societies
as a whole.

The study of ethics is essential in various domains, including business, medicine, law, and
politics, where ethical decisions and actions have significant consequences. Ethics helps
individuals and organizations to make informed decisions that are morally justifiable, taking
into account the potential impact on all stakeholders. It promotes a culture of integrity,
accountability, and transparency, and encourages individuals to act with compassion,
empathy, and respect for others.

In essence, ethics is a vital component of human society, guiding our actions and decisions,
and helping us to lead a virtuous life. It is a continuous process of reflection, evaluation, and
improvement, aimed at promoting the common good and the well-being of all individuals.

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2.3 THE IMPORTANCE OF STRATEGIC AND ETHICS

Strategic thinking and ethics are two crucial components of business decision-making that
are often intertwined. Strategic thinking involves the ability to anticipate and adapt to
changing circumstances, while ethics refers to the principles and values that guide our actions
and decisions. In this paper, we will explore the importance of integrating strategic thinking
and ethics in business decision-making, highlighting the benefits and challenges of this
approach.

• Improved Decision-Making: Integrating strategic thinking and ethics can lead to more
informed and responsible decision-making. By considering the ethical implications
of our actions, we can make decisions that align with our values and principles,
leading to more sustainable and long-term success.
• Enhanced Reputation: A company that prioritizes ethics and strategic thinking is more
likely to build a positive reputation and gain the trust of its stakeholders. This can
lead to increased customer loyalty, improved employee morale, and enhanced brand
reputation.
• Increased Innovation: Strategic thinking and ethics can foster a culture of innovation
and creativity. By encouraging employees to think critically and ethically, companies
can develop new products and services that meet the needs of their customers while
also aligning with their values.
• Better Risk Management: Integrating strategic thinking and ethics can help
companies manage risk more effectively. By considering the potential ethical
implications of their actions, companies can mitigate potential risks and avoid costly
mistakes.

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 CHAPTER III
CLOSING

3.1 CONCLUSION
In conclusion, the integration of strategic thinking and ethics is not just a theoretical concept
but a practical necessity for businesses aiming for sustainable success and societal impact.
This paper has explored the significance of combining strategic thinking, which involves
anticipating opportunities and challenges, with ethics, which guides moral decision-making
and behavior..

By intertwining strategic thinking and ethics, organizations can navigate complex business
landscapes with a compass that not only points towards profitability but also upholds
principles of integrity, responsibility, and accountability. This synergy fosters a culture where
decisions are not solely driven by short-term gains but are rooted in ethical considerations
that benefit all stakeholders.

The benefits of this integration are manifold, including improved decision-making, enhanced
reputation, increased innovation, and better risk management. While challenges such as
balancing short-term and long-term goals, managing stakeholder expectations, developing a
strong ethical culture, and measuring success exist, they can be overcome through
commitment, training, and a clear ethical framework.

In essence, the harmonious blend of strategic thinking and ethics creates a foundation for
sustainable growth, ethical leadership, and societal contribution. It is imperative for
organizations to embrace this synergy, not as an option but as a strategic imperative that
aligns with the values of a responsible and forward-thinking business in today's dynamic and
interconnected world. By embracing this synergy, businesses can not only thrive in the
present but also leave a positive legacy for future generation.

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3.2 SUGGESTION
Companies must be able to determine the right strategy for them in order to win in
competition in the market

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 REFERENCE

Pearce, J. A., Robbins, D. K., & Robinson Jr, R. B. (1987). The impact of grand strategy and
planning formality on financial performance. Strategic Management Journal, 8(2), 125–
134.

Shweder, R., Much, N. M., & Mahapatra, M. (n.d.). N., & Park, L.(1997). The" big three" of
morality (autonomy, community, and divinity), and the" big three" explanations of
suffering, as well. Morality and Health, 119–169.