Ethics And Strategy Essay

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Understanding the nature, concept and negative effects of neoliberalism on strategic management is of utmost importance, as neoliberalism is one of the greatest philosophies leading to global transformations in capitalism.

Neoliberalism is not a clear-cut singular concept (Plehwe and Walpen, 2006, p.

2), subject to “purely” theoretical definitions, and “straddles a wide range of social, political and economic phenomena at different levels of complexity” (Saad-Filho and Johnston, 2005, p.

1), yet it has defining characteristics as a political and economic philosophy.

Ethics issues and how any organization practices ethics are more important than ever because social media readily exposes issues that might have been swept aside in previous generations.

An organization devoting resources to developing policies and procedures that encourage ethical actions builds a positive corporate culture.

One area that organizations can lose consumer confidence is failing to honor guarantees or negatively deal with complaints.

This is why consistent policies and employee training is imperative.

Neoliberal strategic management prioritizes stock-prices and short-term goals by profit-driven shareholders and executives unlike the manufacture-oriented business leaders dedicate to managerial commitment to long-term investment (Davis, 2009).

In the South Africa, for example, the Financing Policy for Welfare treats users of welfare services as customers by talking about “business plans, contracts, affordability, efficiency, outputs, performance audits, outsourcing, venture financing, and service purchasing, thus effectively reconstructing” (Sewpaul and Hölscher, 2004).

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