Strategic Management: BEC325E
Chapter 1
The evolution of management theories
Prof Deliwe
Responsible management
• Traditional approaches to management (administrative/bureaucratic/HR/
systems) all internally focused.
• The traditional management approaches have been blamed for many of
the worlds current ailments, issues and crisis's such as social injustices
and environmental destructions that we are made aware of daily.
• Traditional management approaches have also been criticised from a
variety of different perspectives for their contribution to the 2008/2009
financial crises and COVID-19.
• A need to move from a source of problems to a source of solutions.
• RM a contemporary approach to management, provides a solution.
• RM is the management of an organisation built on the principles of
sustainability, responsibility and ethics.
Responsible management
Responsible management
Sustainability
• Focuses on organisations triple bottom line, related to the systematic
social, environmental and economic issues that threaten the wellbeing
and survival of current and future organisations. (global warming, global
water crises, financial crises, global health crises)
Sustainable development
• Human societies must live and meet their needs without compromising
the ability of future generations to meet their own needs.
Sustainable development goals
• 2015, the UN’s, governments, institutions, businesses and citizens
came together to embark on a path to improve the lives of people
everywhere, where decisions made will determine the global course of
action to end poverty, promote prosperity and well-being for all, protect
the environment and address climate change. P.g 19 SDGs
Responsible management
Responsibility
• Being accountable. Within RM it focuses on stakeholder engagement
with the aim to optimise stakeholder value.
Stakeholders and stakeholder theory
• Who are the stakeholders of the organisation?
• Narrow and broad (within and external)
• Those groups without whose support the organisation would cease to
exist.
Corporate social responsibility
• Friedmans view: social responsibility is about using resources and
engaging in activities designed to increase profits. (narrow)
• Stakeholder theory accounts for multiple constituencies impacted by
organisational entities (employee, suppliers, the community, creditors,
the environment etc…)
Responsible management
Ethics
• Conducting all activities in an ethical manner and create moral
excellence in the organisation.
• Investigates questions on what is right and what is wrong, what is
duty and what is obligation and what is moral responsibility.
Business ethics
• The study of what constitutes right and wrong, or good and bad,
human conduct in a business context. E.g. gifts
Drivers of business ethics
• Ensuring that the right decision is made in an ethical dilemma.
Responsible management
Corporate social responsibility
Responsible management
Drivers of RM
• Responsible consumers: the needs and wants of consumers (main
driver)
• Responsible sourcing: Supply chain, suppliers
• Responsible employees: 30% of workers are millennials (1981-1996),
these employees are different from the baby boomers.
• New market and business case
• Globalisation: Imported cheaper goods.
• Advances in technology and transparency: Media (reputation)
• Increasing corporate power: multinational organisations increases
power and larger power leads to bigger responsibility towards all
stakeholders
• Global business risk: economic (financial crises, Covid-19)
Strategy and responsible
management
Strategy and responsible
management
• Alignment: Responsible management practices are often
integrated into an organization's strategic goals and objectives.
• Long-term perspective: Responsible management is often a
key component of a company's long-term strategy, as it
involves considering the impact of business decisions on
various stakeholders, the environment, and society as a whole.
• Competitive advantage: RM is a strategic differentiator, as it
can enhance a company's reputation, attract socially
conscious customers, and improve employee morale,
ultimately contributing to a sustainable competitive advantage.
Strategy and responsible
management
• Regulatory compliance: RM practices are often aligned with
regulatory requirements, and a well-crafted strategy can ensure that
an organisation meets these obligations while also going beyond
mere compliance to create positive social and environmental impact.
• Innovation: Integrating RM into an organisation's strategy can drive
innovation, leading to the development of new products, services,
and processes that are more sustainable and socially responsible.
• Stakeholder engagement: A RM approach is often centered around
engaging with various stakeholders, and a well-defined strategy can
help in effectively managing these relationships to achieve mutually
beneficial outcomes.
Prescribed textbook
Venter, P. (2014). Practising Strategy: A Southern African Context. Cape Town: Juta.
Students can purchase the eBook from any online academic bookshop such as:
1. Van Schaik
2. Loot
3. Takealot
4. Wizebooks
