Business Ethics Social Responsibility and Corporate Governance

Business Ethics, Social Responsibility, and Corporate Governance

Strategic management addresses the need for creating solutions for problems or opportunities identified within organizations. The authors of the article explore the strategic management field sentiments towards corporate governance, business ethics, and social responsibility concepts. The article also addresses the roles that strategic management should play regarding these concepts.

An increase in capitalism since the 1990s has led to the popularization of these three concepts. Additionally, the significance of these ideas increased after the fall of great companies such as Enron and Worldcom whose failures were caused by mismanagement and corruption. According to the authors, the strategic management field is purely connected to company performance. Therefore, this study was triggered by the abundant studies related to these concepts and the need to identify proof of how the concepts influence company performance and strategy.

An extensive literature analysis of 908 articles published in the Strategic Management Journal between 1998 and 2010 was conducted by the researchers, to understand the strategic management point of view on these concepts. The results identified only 25 articles that addressed the relationship between business ethics, corporate governance, and social responsibility concepts (Aygün and Yener Pazarcık). Further analysis of the selected articles revealed the difficulty in establishing a direct relationship between business ethics, social responsibility, and corporate governance and the relationship between corporate performance and strategy.

The researchers conclude that the Strategic Management field has quite neglected these three concepts though it has not completely ignored them. According to the researchers, although these three concepts can lead to increased operating costs in organizations, it is nearly impossible to sustain a business without considering them. The researchers conclude that there was a need for more study to be conducted in the area that would focus on the integration of corporate leadership, business ethics, and social responsibility and strategies. Since the analysis relied on articles from only one journal, future research should include a detailed consultation of other journals.

Work Cited

Tayşir, Eyüp Aygün, and Yener Pazarcık. “Business ethics, social responsibility, and corporate governance: Does the strategic management field really care about these concepts?” Procedia – Social and Behavioral Sciences, vol 99, 2013, pp. 294-303. Elsevier BV, DOI:10.1016/j.sbspro.2013.10.497.