An often overlooked way to cultivate and maintain a corporation’s value is through the implementation of a social responsibility platform within common business practices and operations. The definition of social responsibility is for a company to maximize positive benefits and minimize negative effects to their stakeholders. Company Q’s lack of concern towards their primary and secondary stakeholder’s interests highlights their disregard, intentional or not, of social responsibility and the resulting negative effects it creates.
Company Q demonstrated this social responsibility neglect to their primary shareholders by delaying their customers’ desire for organic, healthier options and by implying mistrust of their employees. Social responsibility advises regular attunement to stakeholders concerns as a means of keeping in touch with them, a form of open communication. It took three years of customer requests to implement the addition of organic food to Company Q’s inventory. A modest turn-around time is understandable as not all stakeholder desires are achievable. This request, was obviously achievable based on the eventual presence of organic goods, however it was ignored for a lengthy time; this does not demonstrate an attitude of social responsibility from Company Q. A company’s social responsibility also pertains to another primary stakeholder, their employees. Employees are considered stakeholders due to their concern over their employer’s wellbeing: it’s a symbiotic relationship. Company Q’s distrust of their employees, citing internal theft, as a reason to opt out of food donation to the local food bank, does not portray a beneficial attitude towards them. Employees keep the company operating and should be treated fairly, with respect or risk a negative work environment created by the attitude of the company. Negative effects to primary stakeholders can directly affect Company Q’s revenue, but also their reputation, which has negative long lasting results to generating future business and more stakeholders.
Similarly, a secondary stakeholder, surrounding communities, was ignored and rejected. Social responsibility suggests investment into the surrounding community as a way to provide direct benefits. When Company Q closed two locations in higher crime areas and rejected a request to assist a food bank, Company Q negatively impacted the surrounding communities through job loss and neglect to their fellow man. In order to cut loss in a poor performing region, Company Q closed two stores. The resulting job loss in an area known for higher crime rates did not minimize negative effects. It more than likely caused a crime increase due to a linked rise of poverty. Another time, a local food bank requested day-old goods from Company Q in order to alleviate the homeless population’s lack of food. Company Q threw the items away, worried about potential theft and loss to revenue. There was no substantiated cause for this decision. It was a minor concern that could have been assuaged had adequate research and out-reach been completed within the community as social responsibility recommends. Overall Company Q’s lack of aid offers no assistance to the surrounding community and often results in a direct negative effect.
Company Q has an opportunity to change their attitude and apathy towards social responsibility by implementing three simple steps. The first action would be to explore the opportunity to reopen the closed stores with more affordable inventory, suited to the surrounding community. By making available affordable products, this would boost lower revenue and keep jobs in the community; a positive effect for both Company Q and the stakeholders. A second action is to develop a committee responsible for the evaluation and feedback of customer requests. This would ensure timely responses and keep open communication with their customer base. The final action would be to develop a community outreach program, such as donations to the foodbank or a scholarship program, with corresponding policies and guidelines to protect Company Q from loss, but also enabling goodwill. These steps would be a proactive approach towards social responsibility. It incorporates the beginnings of a social responsibility platform into current operations, which would overall increase the rapport between Company Q and their stakeholders and result in a positive relationship to increase positive effects.
In conclusion, Company Q has limited itself by failing to implement a social responsibility platform within their day-to-day operations. If Company Q enacts the action plan outlined above they will notice benefits right away: positive rapport in the community, revenue increase and many others. Some people believe that a company’s success is derived from its accomplishments in the marketplace with a high return in profits. This model, an increased revenue generated for a company’s constituents and stakeholders, thus increasing the company’s worth, is a common measure to validate achievement. Social responsibility is another way to measure a company’s worth, without the dollar, but in goodwill towards its stakeholders.