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312 PART 5 • KEY STRATEGIC-MANAGEMENT TOPICS

FIGURE 10.1
A Comprehensive Strategic-Management Model

Chapter 10: Business Ethics, Social Responsibility, and Environmental Sustainability

Perform
External Audit
Chapter 3

Implement
Generate, Implement
Develop Vision Establish Strategies— Measure
Strategies—
Evaluate,
and Mission Long-Term and Select Management Marketing, and Evaluate
Statements Objectives Finance, Performance
Chapter 2 Chapter 5 Strategies Issues Accounting, R&D, Chapter 9
Chapter 6 Chapter 7 and MIS Issues
Chapter 8

Perform
Internal Audit
Chapter 4

Chapter 11: Global/International Issues

Strategy Strategy Strategy
Formulation Implementation Evaluation

Source: Fred R. David, “How Companies Define Their Mission,” Long Range Planning 22, no. 3 (June 1988): 40.

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 pro-
viding 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 busi-
ness practices, cover-ups, takeover tactics, conflicts of interest, employee privacy, inappro-
priate 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.