Strategic ambiguity and ethical actions

Ethics and moral obligations of management are an integral component in corporate strategy and support is now increasing for the proposition that ethics should be central, not peripheral, to the overall management of the firm. Within this context, we examine the influence of strategic ambiguity on the ethical actions of corporations. Strategic ambiguity is a prevalent and valuable tactic in organizational strategy making. However, the influence of strategic ambiguity on organizational strategy making and communication may lead to unethical executive behaviour and action. This paper develops a framework to examine the role of strategic ambiguity in ethical action, using James Hardie Industries as a case study. Areas for improvement to integrate ethics as a pivotal component of strategy making and the use of strategic ambiguity are recommended.