Ethical and Social Responsibility in a Given Business

Part A

Company Q's insensitive attitude toward social responsibilities seems to be driven by profit margins. Reportedly because of lost revenue, two stores in higher crime rate areas have been closed. Management's attitude toward profit and loss seems to be to turn their backs to the problems instead of finding ways to solve the issues. Many different options or processes could have been evaluated and introduced with minimal net investment.

For years Company Q's customers have been requesting health conscience and organic options. When management finally began offering a limited selection of these items, they did so at a premium cost to the customer. This enabled Company Q to increase their profit margin but may in the long run cost them through the lack of consumer loyalty.

When the local food bank approached Company Q about donating their day old perishable items, the company denied the request and decided instead to throw the food away. They cited possible lost revenue due to employee fraud and theft in deciding to throw the food away.

These three situations show an underlying lack of compassion between Company Q and the community in which the operate and the customers they serve. It also highlights a perceived breach of trust by management toward their employees.

Part A1

In higher crime rate areas in which Company Q has stores, they could establish better relationships within the community by sponsoring youth outreach programs, sports leagues, and after school programs.

Additional review of the decision to close the stores in high crime rate areas could show that an investment in employees and security processes could address the loss in revenue. Keeping these stores open would allow for more job opportunities in the community, which in turn could have a positive effect on the crime rate in the area.

Company Q's response to requests for health-conscience and organic products is a step in the right direction, but the process in getting there and the current end results have flaws from a social aspect. To improve Company Q's mindset on social issues, management will need to evaluate how it handles customer requests. An evaluation of the very limited selection of these foods should be done with a customer focus group to determine where expansion of these products can be made. Pricing should also be considered to keep these foods affordable.

When the local food bank requested Company Q donate day-old products, the reasons for denying their request highlights a major issue within the company, trust. Management cited concerns of employee fraud and theft of these products and chose to instead throw items away instead of donating them. This approach is very short sighted in that if the current employee base would engage in this behavior, it would happen regardless of whether the products