Free Essay

Jeff Dillon

In: Business and Management

Submitted By jvlpdillon
Words 581
Pages 3
EST1 310.2.1-05

Evaluation:
Company Q is not functioning in a socially responsible way or practicing proper social ethics. The business has not established themselves as being a part of the larger community. This was evidenced in the fact that they closed down stores in high crime areas that are also highly populated areas. Instead of closing these stores if a healthy relationship with the community was developed and maintained these stores would likely have not lost money and would have instead thrived. Secondly by only carrying high margin health conscious and organic products the company may be alienating the lower income areas. This gives the impression the shoppers are not welcome and not good enough for their stores. Finally the business chose not to donate left over product to a food bank because they did not trust their employees. Employers and employees should be able to maintain a relationship of mutual trust. As it stands now this is not occurring.
Recommendation One:
Rather than closing the stores in “high” crime areas it is recommended by integrating more closely into the surrounding community through philanthropic communities actives may have led to increased profits. Evidence has shown that exercising social responsibility is related to increased profits. One survey indicated that three out of four consumers refused to buy from certain businesses, and a business's conduct was considered an important reason to avoid a business. (http://online.vitalsource.com/books/9781285279985/id/T7) Examples of the community philanthropy could include organizing company employees and members of the community to volunteer for beautification projects around the area. The effort can be short lived it must be long lived and sustained to be successful.
Recommendation Two:
While it was a step in the right direction for Company Q to begin to stock health conscious and organic products, it is vital they stock the products that their consumers will desire. From the social responsibility perspective by only stocking high profit products may give the impression they are out of touch with the larger community. Customers will feel alienated and will not continue to shop at their stores. Rather it is recommended that the store in each community solicit customer feedback on products they would desire to be carried. Then Company Q should work with distributors to stock the desired products at a reasonable profit margin.
Recommendation Three:
Company Q should shift towards the community focused program of donating leftover products to local food banks. Company Q should not look at the possibility of employees stealing product, but rather as a chance to return to the community. Company Q should instead follow the model set by Panera bread. Panera Bread has been very successful donating to food banks. Over the last five years Panera stock has risen from $50.37 on 5/12/2008 to 181.83 on 5/10/2013. ("Historical stock prices," 2013) All the while they have donated Panera bakery-cafes donated a retail value of approximately $100 million worth of unsold bread and baked goods in 2010 to help neighbors in need. ("In the community," ) A program that continues today and has not impacted profits.
Sources:
Ferrell, O. (2013). Business Ethics 2009 Update: Ethical Decision Making and Cases (7th ed). South-Western. Retrieved from http://online.vitalsource.com/books/9781285279985/id/T7
Historical stock prices. (2013, 05 13). Retrieved from http://www.nasdaq.com/symbol/pnra/historical
In the community. (n.d.). Retrieved from http://www.panerabread.com/about/community/

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