Social Responsibility
Task 1, Part A
It is clear that “focusing on profit alone can create an unfavorable paradox that causes a firm to fail to achieve its objective” (Ferrell, Fraedrich, & Ferrell 2009). Company Q’s social responsibility is on a downward trend. Because Company Q took a gamble operating two stores in higher-crime-rate areas and lost, their current attitude toward social responsibility is comparable to stock trading: cut your losses and move on to more profitable ventures. This may seem logical from a profit-making perspective, however it is quite damaging to their reputation, which is something that should not be taken lightly due to them being a small, local chain. Word travels fast. I find that Company Q’s biggest fault in their social responsibility is that they would rather throw away non-profitable items than single-handedly offer it to those in need. This decision in itself is damaging to their ethical reputation to do the right thing. The fact that it took Company Q years to respond to their customers’ requests to finally offer groceries that were healthier, shows that they do not value the input of their stakeholders. Customers will go elsewhere to find the items they requested, further diminishing whatever customer-based loyalty Company Q held. What Company Q lacked in their social responsibility is the trust, respect, and value of their stakeholders. In turn, this negatively impacts their ability to turn profits, whether or not they do operate in questionable surroundings.
Task 1, Part B One of the actions that Company Q could consider is building their level of employee interest. Entrust management with putting together an action plan, appropriate to their store, that would strengthen their culture. This may include themed-dress days and barbeques. Happy employees reflect in their want to see their employer succeed. Truly listen to the employees’ concerns and keep them informed of the goings-on of the company. Involve them in
It is clear that “focusing on profit alone can create an unfavorable paradox that causes a firm to fail to achieve its objective” (Ferrell, Fraedrich, & Ferrell 2009). Company Q’s social responsibility is on a downward trend. Because Company Q took a gamble operating two stores in higher-crime-rate areas and lost, their current attitude toward social responsibility is comparable to stock trading: cut your losses and move on to more profitable ventures. This may seem logical from a profit-making perspective, however it is quite damaging to their reputation, which is something that should not be taken lightly due to them being a small, local chain. Word travels fast. I find that Company Q’s biggest fault in their social responsibility is that they would rather throw away non-profitable items than single-handedly offer it to those in need. This decision in itself is damaging to their ethical reputation to do the right thing. The fact that it took Company Q years to respond to their customers’ requests to finally offer groceries that were healthier, shows that they do not value the input of their stakeholders. Customers will go elsewhere to find the items they requested, further diminishing whatever customer-based loyalty Company Q held. What Company Q lacked in their social responsibility is the trust, respect, and value of their stakeholders. In turn, this negatively impacts their ability to turn profits, whether or not they do operate in questionable surroundings.
Task 1, Part B One of the actions that Company Q could consider is building their level of employee interest. Entrust management with putting together an action plan, appropriate to their store, that would strengthen their culture. This may include themed-dress days and barbeques. Happy employees reflect in their want to see their employer succeed. Truly listen to the employees’ concerns and keep them informed of the goings-on of the company. Involve them in
Cited: Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2009 Update). Business ethics: Ethical decision making and cases (7th ed.). Boston, MA: South-Western/Cengage Learning.