...EST-1 Task 1 Many people believe that businesses are obligated to have an ethical duty to be socially responsible, in order to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations or companies seek opportunities to be socially responsible while also making a profit for its shareholders. Company Q, a local grocery store chain recently closed two stores in high crime rate areas of the city because they constantly lost money. After years of requests and demands from customers, all of Company Q’s stores have now offers a limited amount of healthy and organic products, all of which are high profit items. It was suggested to Company Q by the area’s local food bank to donate day old food and goods and the board of directors declined. Company Q’s choice to throw away excess food rather than donate in fear of employee theft can be considered socially irresponsible. According to the USDA (2014), more food reaches landfills and incinerators than other materials in our everyday trash, making up twenty one percent of discarded municipal solid waste. According to Coleman-Jensen (2014), One in six people in America are facing hunger and forty nine million Americans are struggling to put food on the table daily. To know this information and still prefer to throw away goods is not only wasteful but socially irresponsible. Let’s examine what Company Q can do to amend their attitude toward being socially responsible. Company...
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...Robert Moelich Student ID # 000348292 rmoelic@wgu.edu EST Task 1 Company Q’s current attitude towards social responsibility. Company Q is a small grocery store chain located in a major metropolitan area. They have recently closed stores in higher-crime-rate areas of the city. Also, after years of requests from consumers, they have started offering a very limited amount of health-conscience and organic products, which have very high profit margins. A local food bank asked company Q for donations of day-old products and company Q’s management declined deciding instead to throw the food away. The management team cited worries that they may lose revenue due to possible fraud and stealing by employees who might say they are donating the food. It is clear by company Q’s actions that their current attitude towards social responsibility is basically non-existent. Company Q is highly concerned with profit margins and not concerned about having a positive affect within the community they are serving. This type of attitude creates a negative perception of the company by both the customer and the employees within the company. This could be causing both loss of business and low employee satisfaction, which can lead to multiple problems. Recommendations. Closing stores in high-crime-rate areas shows that company Q has overlooked the potential value of those areas. Instead of closing the stores, company Q could establish a crime watch organization. Company Q could...
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...Typically businesses start up with a primary goal of earning revenue – to have the company profits exceed the cost of doing business. Small, local businesses are particularly susceptible to losing customers to large, corporate companies who often force these smaller companies out of business. Does this goal to make money and/or the susceptibility of being put out of business by a larger company excuse a small, local grocery store from filling its social responsibility? No, quite the contrary. It is becoming increasingly apparent that many consumers are basing their decisions not only on the items being provided by a company but the amount of “good” or perceived good a company is doing in their community. Under the theory that social responsibility helps determine if a company is successful, let’s examine Company Q’s attitude toward social responsibility. Company Q recently closed down a couple stores citing that these two stores have been consistently losing money. It must be noted; however, that both stores were also located in higher-crime-rate areas of the city, which may cause the community to speculate about the real reason the stores were closed. Could it have been the fear of the neighborhood itself that caused Company Q to decide to close those two stores? The closing of these two stores could suggest that Company Q is more interested in profits and revenue rather than providing a much needed service to the community. In addition, Company Q’s customers have been requesting...
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...In today’s business world social responsibility is a very important piece to success. A company needs to make profits of course, but providing a good value product, secure employment, and giving back to the community that supports them, are all key to a successful venture. The perception of the public needs to be positive in order for a company to gain their trust and support. In this situation, it is clear by the poor choice to throw out the food rather than donate it to the local food bank, that company Q clearly has absolutely no social responsibility at all. Once news of their lousy decision spreads they will lose whatever community support they may have had. It appears that company Q is motivated purely by greed, without any social conscious nor trust of their employees. Whether it is from lack of knowledge, plain cold heartedness, or both, it will weigh heavy on their companies future. Lack of community involvement, irresponsibility, and pure disregard for building relationships will be looked upon very negatively and damage not only customer relations but shareholder relations as well. While there are a lot of competition and challenges for small business in today’s economic world, there are also a lot of opportunities to stand out by giving back to the community which in turn will provide a positive environment. Part B: Company Q needs to go back to the drawing board and create a strong code of ethics that outlines provisions for social responsibility. Putting...
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...We make a living by what we get, but we make a life by what we give.” – Winston Churchill. There are four levels of social responsibility—economic, legal, ethical, and philanthropic. Socially responsible companies must uphold these elements by behaving ethically and with sensitivity. Being socially responsible has a positive impact on society, business and development as well as contributing to bottom line results. Studies have shown a relationship between social responsibility and profitability and have found that it contributes to employee commitment and customer loyalty. In this scenario Company Q is not upholding its social responsibility and seemingly defined by pure economics which is portraying the business negatively. Company Q is a small local grocery store in major metropolitan area. Two of their stores have closed in high crime areas due to loss of revenue; however, there may be a direct correlation between the management’s lack of engagement and understanding of the communities’ wants and needs forcing the store closures. Company Q had opportunities to improve its reputation and customer satisfaction, but chose to operate from only a financial standpoint. After years of requests from customers, all of their stores began offering a very limited amount of health-conscious and organic products—all of which are high-margin items. The Company appears to be acting without social responsibility for its customers and stakeholders with this behavior. One action...
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...EST1: 310.2.1-05 Part A: In the given information of Company Q, they have demonstrated a lack of social responsibility and appear to have made decisions based solely economic responsibility. In order to determine if they made the proper decisions in closing the stores, we need to know what steps and actions were taken to make a profit. As a chain of stores, it is also important that they looked closely at what ramifications would result in closing the stores. These would be economic impact of laying people off, distance to the next store, profit/loss from the physical property, and public image. Company C also hurts their public image by declining to donate day old products. They cite that they are worried about employees stealing the items instead of donating them. The issue here is trust of employees who they depend on to run their stores and interact with their customers. Company Q has a responsibility, ethically, morally and socially, to provide the best customer service to the community. They need to make sure that they tend to all of these responsibilities. Part B: Company Q needs to develop a plan to make a positive impact in their communities through Social Responsibility. One of the first steps would be to work on employee engagement through teams or committees committed to establishing procedures for donating to the food bank. They could even sponsor a food drive to support the food bank. Another step would be to promote the health-conscience items and...
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...Company Q is a small grocery store chain. Being in an industry that is constantly overrun by large corporations can prove to be extremely challenging and cause a company to become extremely profit driven. I think that this is exactly what has happened in the case of Company Q. A successful organization is one that finds balance both internally and externally. Company Q seems to be lacking this balance within the organization and their decisions and actions support this. I feel that these recent situations should be seen as a learning opportunity for Company Q, as it is obvious that they are not very developed in terms of social responsibility. If different measures had been taken, Company Q could have prevented some of their recent store closings and also been more open to the idea of helping with the community food bank. While I can list a myriad of possible reasons for the company’s current situation, the focus here is social responsibility and how it can be improved. Company Q is more focused on their profit margin than their social obligation within the community. In order for a good balance to take place Company Q needs to make sure that the community, customers, stakeholder and employees are all kept satisfied. I think that the first major issue that Company Q needs to address is their market and sales research. If the company had to close stores in unprofitable areas then there was obviously an incorrect assessment of the needs in that particular area. Maybe the stores...
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...Over the years, social responsibility has become increasing important. Many companies have become gradually concerned about their image with the community and customers they serve. Socially responsible companies are not only concerned about profits but more importantly about making a positive impact on stakeholders. Company Q’s attitude towards social responsibility is low to non-existent. Recently the company had to close two of their stores in high crime areas due to money loss. The closings were more likely due to not investing in security and lack of integrity at the work place. After years of demands from customers to provide health-conscious and organic products, they provided the customer’s request at high margins. The company cares little for customer’s interests. When asked to donate one day old products by the community’s food bank, management decided that it was best to throw away the products because they were worried about fraud and stealing by employees. Management is most likely not running the store correctly thus creating a negative job environment and creating dishonest employees. Company Q has not done anything to maximize a positive effect in the area they serve and are only concerned about making a profit. In order for this company to improve their attitude towards social responsibility they need to begin with fixing their internal issues. Ethical misconduct in the work place is more difficult to defeat than low financial performance. This company should...
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...why I think Company Q is or is not acting in a socially responsible manner for each of the three situations in this scenario. I will also explain three ways I think Company Q can bolster its attitude towards social responsibility to improve its positive impact on all its stakeholders and the community it operates within. Each situation in the scenario has a component of merit and detriment to its stakeholders, but to me, I believe the attitude towards social responsibility by company Q is negative at the core. Company Q appears to be following more of a shareholder model, in which it is placing most of its emphasis on the shareholder and increasing profits without much consideration for its other stakeholders. For example, in situation 1, Company Q closed two stores in a major metropolitan area suffering from high crime rates due to a consistent loss of money. While this decision was beneficial to the shareholders, it will also put all of those stores employees out of work and eliminates a source of groceries for its communities. Situation 2 shows the emergence of a limited health-conscious/organic products section in the stores after years of requests from customers. But these items are all high margin items, maximizing profits for the company. These offerings serve the shareholders but not truly helping the customers due to the high cost. In situation 3, a local food bank has made a request to obtain the entire store’s day old food. This request was denied, citing...
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...In today's fast-changing business world, companies are facing multiple new environmental, social, and cultural challenges that in large part determine their capacity to establish, maintain, and protect their business, and to deliver sustainable growth to benefit all (Quinn, 2013). Company Q, a small local grocery chain, trying to survive in a thriving metropolitan area, is in the midst of those challenges. Part A: Based on the given scenario, evaluating Company Q's attitude toward social responsibility, is best achieved by identifying how the companies commitment, or lack thereof, is in line with the four aspects of social responsibility: economic, legal, ethical, and philanthropic. Economically, Company Q has shown little interest in being social responsible. At the most basic level, all companies have an economic responsibility to be profitable so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy (Ferrell and Pride, 2006, p. 91). Company Q has closed two stores in high-crime areas stating that these stores were continuously losing money. It was not stated why the stores were losing money or if the company took any measures to prevent the loss of profits. The closing of two stores, without taking proactive measures to regain profits, not only affects Company Q's future profits but also has a negative effect on the community in which the stores were located. The loss...
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...Ethical issues in Business EST 310.2.1-05 In today’s business realm stakeholders should be mindful of the impact of social responsibility within organizations. Company’s need to look for opportunities to maximize positive images and reduce negative images within society regardless of the size of the company. The benefits of being socially responsible can create shareholder capital as well as other opportunities for stakeholders. Company Q’s concern for social responsibility has been steadily declining for years. Their behavior lacks concern towards the primary stakeholders’ expectation of profit with tangible and intangible resources. This is seen in the way the company treats the customers, investors and suppliers. For example, the company has been passively dealing with the criminal activity within their community, causing the loss of products through theft and decreased revenue. They are experiencing a declining number of paying customers as a result of not being able to have a safe shopping experience. The company self-reports this fact by closing two stores due to constantly losing money in these high-crime areas, essentially enforcing their lack of concern for the job loss to their employees and suppliers. Their harsh attitude towards the primary stakeholders is evident in the lack of trust toward the employees and the blatant disregard to the customer’s request for certain quality/specialty products over the past few years. Furthermore, their poor management...
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...ignoring the needs of the stakeholders in the neighborhood, shows that they are out of touch with current standards and expectations. High crime neighborhoods are often low income neighborhoods; the same neighborhoods that most need a grocery store. The decision to close the stores in these neighborhoods show very poor corporate citizenship by Company Q and could cause further decline in sales in other stores as community citizens will likely make another choice when having to travel for their shopping. Overall Company Q seems to lack a current policy of corporate social responsibility and behaves thoughtlessly in respect to the people that need them most. Part B Company Q could easily improve their attitude toward social responsibility. 1. Company Q could reevaluate their decision to donate the day old food products to the local food bank. The company could put a policy in place that would ensure that fraud and theft by employees could not be covered up under the guise of donating. Company Q could place trusted employees in charge of this program, where all donated products were...
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...Social responsibility serves to act as the conscience of business. Businesses can have a tremendous impact be it positive or negative. A solid attitude toward social responsibility ensures that impact is constructive. As both a District Sales Manager and General Sales Manager with AT & TY Advertising Solutions for 5 years, I gained an intimate working knowledge of how integral a healthy approach to social responsibility can be to community, productivity and employee moral. Company Q has an approach toward their ethical duty is lacking in several respects and leaves much to be desired. On the other hand, social responsibility does not override good business decisions. Following a history of customer requests, Company Q began carrying organic and healthy option products. A responsible grocer has an obligation to provide its customers with the option of food that is healthy and nutritious. It does not have to be the only product, but it should be available given the level of obesity poor nutrition induced disease in the United States. Organic products are grown by strict guidelines that eliminate the use of most chemical agents. This seemingly would not only be healthier for their clientele but one would think it to be better for the environment, thus having a positive impact on both community and local ecology. Since these products are also high margin products it is not only responsible, it is profitable. The more of these products they carry the more they will sell and in turn...
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...Company Q is a small local grocery store chain located in a major metropolitan area. They have recently closed a couple of stores in higher-crime-rate areas of the city, reportedly because these two stores were consistently losing money. After years of requests from customers, all of their stores have started offering a very limited amount of health-conscience and organic products—all of which were high margin items. When asked by the area’s food bank for donation of day-old products, management declined deciding instead to throw the food away, citing worries over lost revenues due to possible fraud and stealing by employees who might say they are donating the food. The first area that Company Q could improve in would be community relations. By strengthening ties with the community through various events and promotions, people in low income areas would be more inclined to shop with Company Q and boost sales in what would be perceived as low income areas. Some examples of bringing additional customers in via promotions are coupon matching, holding special events outside of the store, such as a sidewalk sale, and a small fun fair. Also by extending more shopping deals such as a “10 for 10” sale, this will bring in more shoppers who are willing to spend money for low ticket items that will still bring a profit into the store. There are other ways a company can cut costs as well on the store side as well, such as working with distributors to lower buying prices for the store and...
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...Task 1 – Evaluation and recommendations of Company Q A. Evaluation Company Q’s current attitude toward social responsibility does not seem to exist. Of course it is a business’s goal is to make a profit, but it should also include good practice between the company and community. The company’s closure of stores due to high crime rate areas, offering products solely on being high margin items, and not donating day old food to local food banks are big factors of not being socially responsible. B. Recommendations 1. Company Q should not have shut down stores just because they were in higher crime rate areas, which also created higher unemployment. It should have created stronger security which in turn would help better the community, which in turn creates profits. It would also be a way of offering better products to the community as opposed to local corner stores. 2. Company Q offering health conscious and organic products as per their consumers request, was not done for the consumer but because they were high margin items. They may be high margin items but it needs to be considered that if these types of items will be offered they have to be of good quality and from reputable markets. Consumers being able to afford these products, as they can be more expensive, also needs to be a major factor. 3. Company Q not donating to the local food bank is just showing that the company has no sympathy for the less fortunate. This type of attitude, can alone, destroy...
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