Question

• Evaluate the influence of ethics, social responsibility, and legal considerations on strategic planning.  
• Discuss the value of corporate social responsibility (CSR), and determine if Caterpillar Inc.’s CSR meets those values.
• Analyze the role of ethics and social responsibility in developing Caterpillar Inc.’s strategic plan while considering stakeholder needs and agenda.

Answer 1

Evaluate the influence of ethics, social responsibility, and legal considerations on strategic planning.  

During the strategic planning process, it is required to consider the ethical values. Considering the ethical framework makes strategic planning more responsible towards meeting the needs of social obligation of the business. Strategic planning is done to provide commercial benefits to the organization but it should be done in an accountable way and considering ethical values makes organization to focus towards social responsibility to stakeholders. These stakeholders are suppliers, customers; government, society etc. and they can be benefitted by such strategic planning process. Another crucial thing to consider is transparency but this transparency can only be established by practicing honesty factor while formulating strategic planning. Fairness and truthful business can only be accomplished if the business considers ethical values and social responsibility of the business. Thus, the consideration of these factors is imperative. To make strategic planning successful, legal considerations should also be taken into account. Focusing on legal issues, the organization can make proactive strategies to avoid them. strategic planning considers SWOT analysis and creating a better opportunity for the company but overlooking the legal changes or regulation may jeopardize the strategic planning success. Thus, these legal considerations should also be taken into account

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Discuss the value of corporate social responsibility (CSR), and determine if Caterpillar Inc.'s CSR meets those values.

The value of corporate social responsibility is reflected by the benefits it offers such as a good image and reputation among the stakeholders, and in general public .This enhances the productivity of the organization as well. the company can be recognized as a corporate citizen and this adds more confidence in investors and customers to invest and purchase products or services of the company.

In this regard, the company Caterpillar corporate social responsibility initiatives are explained. The company is well recognized to play the corporate social responsibility. It has involved in providing the safety at workplace, caters the needs of society and customers by offering sustainable products and solutions.

Analyze the role of ethics and social responsibility in developing Caterpillar Inc.'s strategic plan while considering stakeholder needs and agenda.

The role of ethics and social responsibility in Caterpillar strategic plan is found crucial as the company considers fulfilling its commercial objectives by serving the community and other stakeholders. It is found that 18 percent of the company sales and revenue were gained by those products and solutions that provided sustainability benefits to the customers .Thus, this statement suggests that the strategic planning considers the interests of community and promotion of sustainability to ensure that resources of the community are well used and protected. these initiatives suggest that the greenhouse gases emissions are reduced and benefits to the community through employment creation, protection of biodiversity and natural resources, and through other means are provided by the company. thus it can be said that Caterpillar Inc. considers the social responsibility and ethics while formulating the strategic planning.