...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...
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...Company Q – Social Responsibility By David Clemmons Evaluation Being that Company Q is a smaller, local grocery store operating in a major metropolitan area, the demand to be innovative in ways that will allow them to grow is more significant than the current operating model. Current perceptions don’t allow companies competing in local markets to simply be in business for the sake of making a profit. Now, more than ever, smaller businesses hoping to succeed must constantly shift their business models to compete with that of larger companies. The smaller companies need to understand that being a part of the local society is an intrinsic part of doing business. Participation and community activism that supports the community is a crucial part of any small business’ growth and success. Company Q’s current position paints a different picture. While the public may rely on companies for goods and services, the level of competition in smaller local markets allows customers to make decisions based on many factors, including, and not surprisingly, how much good a local company is supporting the community outside of it’s establishment. Are they supporting locals schools, contributing to fundraisers, allowing local clubs to hang advertising in their establishments, even when it’s doesn’t promote the profitability Company Q? By not doing so, Company Q isn’t being socially responsible. They’re exhibiting a lack of desire to be proactively involved in the community, which...
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...The Ethical and Social Responsibility of Apple Company John Bryant BUS 508 April 29, 2014 Prof. David Grasser Corporate Ethical and Social Responsibility – Apple Company Apple Company is one of the largest manufacturers of computers and electronics. “Apple Company was founded on April 1, 1976, by college dropouts Steve Jobs and Steve Wozniak, who brought forth a new company vision of changing the way people, viewed computers” (Library of Congress, 2008). The ethical and social responsibility of Apple Company should have started with its inception; however, it did not. It was not until years later with the advent of social media and the power of worldwide communications, did Apple Company focus on ethical and social responsibilities regarding the treatment of its employees in their factories overseas. The international reports of employee maltreatment; the use of underage employees; and, documented instances of wrongful disposals of toxic matter into the environment, forced Apple to take immediate action and establish safeguards which would protect its employees, the environment and more importantly the brand name that is Apple Company. Apple Company: The Establishment of the Apple Supplier Code of Conduct An examination of Apples current position regarding ethical and social responsibilities determined that, in 2007, Apple Company established the Apple Supplier Code of Conduct, which is a set of guidelines Apple suppliers are to follow. The rules established...
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...Evaluation of Company Q’s Current Attitude Toward Social Responsibility -------------------------------- Abstract Company Q is a small grocery store chain that recently closed two of its stores located in what was considered high-crime areas of the city. Closure of the stores is reportedly due to loss of revenue. Responding to years of customer demand, Company Q decided to sell a small selection of healthy and organic products in its remaining stores and they sold these products at high margins. Citing concerns of theft and fraud by its own employees, Company Q’s management opted to discard expiring (and high margin) healthy and organic food products over donating them to the local area food bank. I. INTRODUCTION The supporting principal behind social responsibility is a business’s obligation to maximize its positive impact while minimizing its negative impact on stakeholders and on the environment in which it operates. The ideals of social responsibility are ever present in today’s society and a standard in business culture, principles of which are a recurring theme of ethics in almost every industry. Company Q’s current attitude toward social responsibility is apathetic as the company’s management appears to be primarily focused on matters that drive short-term profit increase. Being focused on short-term gains, Company Q misses opportunities to be socially responsible where the business can better ensure its own sustainment by creating wealth over the long-term....
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...The effect of Corporate Social Responsibility on Company Management There is a need to understand the negative or otherwise, of the effect of CRS activities on the management performance of the companies that practice CSR as part of their activities besides the major predetermined goals. Research evidence suggest that a corporation’s socially responsible behavior can positively affect certain attitudes toward the corporation. The effect occurs both directly and indirectly through the behavior’s effect on managers and the overall corporation identification. Thus, perceived corporate social responsibility affects not only customer purchase behavior through customer corporate identification but customer donations to corporate-supported nonprofit organizations. There has been a conceptualization of corporate social responsibility (CSR) that emphasizes the role and potential contribution of marketing discipline and depicts CSR initiatives as the actions undertaken to display conformity to organizational and stakeholder norms. There discuss managerial processes needed to monitor, meet, and even exceed, stakeholder norms, analysis explains how CSR initiatives can generate increased stakeholder support. In the face of marketplace polls that attest to the increasing influence of corporate social responsibility on consumers’ purchase behavior, implicate both company-specific factors, such as the CSR issues company chooses to focus on and the quality of its products, and individual-specific...
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...Corporate Social Responsibility (CSR) is not an easily defined term. It is used in several different conditions, depending on how it applies and the objectives it serves. It only came into existence during the late 1970’s after the term stakeholder started being used, meaning – those whom the organizations activities have an impact on. Before, the role of CSR was not highly required or rather thought of, but consumers today are interested in companies, which are socially responsible. If companies loose sight of their consumer’s thoughts it will impact any potential of growth and hamper profitability leading it to cease in existence. This is why; CSR highlights corporate actions and business models related to social, environmental and economic facets within the world today. In regard to understanding CSR better and deeper we were asked to choose a company we could relate our readings and concepts from the Harvard Business Review by Porter & Kramer 2006 and by Zadek 2006. Initially I had trouble choosing a company as my interest in working is majorly in NGOs. I sought out to understand their CSR but after a couple of searching, I was made aware they mainly collaborate with corporate organizations to promote CSR. Such NGOs like Save the Children, ILO, UNDP all align themselves to create a guideline for companies to function with CSR in mind. So next I thought about considering a company that had built in values of CSR from the beginning- thinking understanding a company who had...
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...Companies use Corporate Advertising to increase awareness of Corporate Social Responsibility Therefore Increasing Profitability Erika Jean-Pierre Saint Leo University Abstract This review of literature will explore seven peer reviewed articles that report on results from research conducted on how companies use corporate advertising to increase awareness of corporate social responsibility thus increasing profitability. More specifically focusing on the advantages of corporate social responsibility and the positive benefits in profitability. This review of literature will incorporate various companies and industries from coffee, grocery, amusement parks, cars, oil production, alcohol, and casinos. It will analyze how corporate communication of corporate social responsibility enhances market share and drive increased profits. Companies use Corporate Advertising to increase awareness of Corporate Social Responsibility Therefore Increasing Profitability Numerous studies have been conducted on corporate advertising to increase awareness of corporate social responsibility and increased profitability for business. Companies use corporate advertising to strengthen their identities and create a favorable mental picture in consumer’s mindset. On average, companies spend millions of dollars each year in their marketing budgets toward corporate advertising. With corporate advertising, companies are not necessarily looking to sell a product or service, but rather the...
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...motivate me during the process of completing the research. 1. First, I would like to express my deep gratitude to my supervisor, Dr. Pham Duc Hieu from International School at Vietnam National University, Hanoi who guide me in my choice of assignment 2. I also would like to thank to Ms. Sumathi and Ms. Shenba at Help University College, who initiated the project and give so much instruction and support. 3. Thank all the respondents in Panasonic company who have helped me complete the survey with their enthusiastic and supporting manner. 2 A CASE STUDY OF CORPORATE SOCIAL RESPONSIBILITY: A SUSTAINABLE TOOL OF COMPANIES’ DEVELOPMENT IN VIETNAM By HOANG THUY HANG October 2011 Supervisor: Dr. PHAM DUC HIEU ABSTRACT With the increasing effects of ASEAN over the world, Vietnam is an ideal market for corporations. Furthermore, becoming the member of WTO since 2007 is an opportunity as well as the threats for local companies. Following the globalization trend, corporate social responsibility (CSR) has been the vital issue in both national and global market. CSR has recently emerged in Vietnam’s market, however, the knowledge and actions of CSR is limited. Many scandals occurred relating to CSR issues such as the case of Vedan Co. Ltd, Sabeco...
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...Company Q and Social Responsibility Company Q does not have a good attitude toward social responsibility. They had to close two stores that were not making any money due to the crime rate in the area the stores were located. Due to a lack of trust with employees the company has decided to refuse donations to the local food bank. Both of these situations have the potential to spiral out of control causing a loss of profit for the company and have a negative impact on the stakeholders. A lack of trust between company and employees could cause this store to suffer increased theft, because the employees know they lack the respect of the company. This may cause them to either turn a blind eye to theft, or steal themselves. In regards to the food banks request, donating locally would be a great way to bond with the community. More people will consider shopping at a store that is giving back to the community. My first recommendation would be for Company Q to start a Product-of-the-month program. They could choose to feature a different item every month and monitor sales on that item. This would lower the risk of ordering a large amount of something that will not sell well. If they only order a small amount and feature it in the store for a month, then they would know if it would be a good item to continue to carry in the store. This would be a good way to find out what customers like without spending a lot of money. It would be wise for them to advertise in their store that they...
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...EST1 TASK 1: Company Q and Social Responsibility When analyzing ethics in a business environment the examiner must evaluate the stakeholder system of morals, values and judgment of the organization in question to determine its collective ethical stance on a situation. Based on the prompt of this task we can derive a list of these stakeholders and use them to construct a current and future representation of Company Qs social responsibility attitude. From the prompt we can group the stakeholders on this issue in question as the: metropolitan community, company shareholders, company management, store customers, local charity and employees. Based on these groups, in terms of social responsibility fact pattern, it can be said that Company Q’s stance on social responsibility is unbalanced, limited and weak. The actions described of the company suggest that the bottom line and revenue are the drivers of company policy and operations. This is especially shown from the cost and loss control decisions made by the company when faced with ethical situations that involved social responsibility in the metropolitan community and local charity arenas. The decision of the company to ignore the opportunity for an increase of social conscience in both situations for revenue control exposes its limited approach to social responsibility. Furthermore the only action by the company that could be deemed as socially responsible was motivated by the possibility of higher revenues through the offer...
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...Ethics and Social Responsibility MGT/498 Strategic Plan, Ethics, and Social Responsibility Ethical values and social responsibility serve an important role in the strategic planning process. According to Milton Freidman, “[t]here is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Wheelen & Hunger, 2010, p. 72). With social media and the internet, it is difficult for companies only to focus on profits. Today, companies need to follow Archie Carroll four responsibilities of business. Those responsibilities include economic, legal, ethical, and discretionary. The priority starts with economic and ends with discretionary. According to Carroll, “a business firm must first make a profit to satisfy its economic responsibilities” (Wheelen & Hunger, 2010, p. 73). Once the company’s economic responsibilities have been met they can worry about the social responsibilities—ethical and discretionary. When a company decides to take responsibility for their actions by doing the right thing, this is called business ethics. In business a company or business has a social responsibility to the consumers and stock holders to make sure they are practicing proper business ethics to not only promote doing the right thing but to show that they are...
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...Business Ethics and Social Responsibility The World Health Organization found children in developing countries who fed on Nestlé’s infant formula had mortality rates five to ten times greater than that of breast-fed children (Scheid, 2014). The numbers of these mortality rates were astounding to the world when it was discovered that Nestle was the culprit. When Nestle was in its strategic planning process ethics and social responsibility to the community was not a priority. Ethics and social responsibility have a very important role when a company is developing a strategic plan. During the strategic planning process ethics and social responsibility must also be taken into careful consideration for stakeholders within organizations. There are preventive measures that companies can take to prevent unethical behavior and prevent stakeholders from overstepping boundaries. Roles of Ethics and Social Responsibility in Strategic Planning Business Ethics Ethics is defined as the consensually accepted standards of behavior for an occupation, a trade, or a profession (Wheelen & Hunger, 2010). Many will debate whether business ethics actually exists. The argument has been that there is no absolute right ethics. Other debaters believe that ethics establishes a foundation for a business. Every company has a set way of doing and handling business, and this organizational culture will vary depending on the company and industry. In the strategic planning process it is imperative...
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...Company Q’s attitude toward social responsibility is negative and could use development. Their actions leave the perception to stakeholders that the company is only interested in profitability. In order for Company Q to improve their attitude towards social responsibility, they need to take into consideration their stakeholders, namely the customers, employees and the community. In my opinion, if the company were to make changes in their attitudes towards social responsibility, they could likely see an increase in revenue and a boost in consumer confidence. I believe that consumers will want to support a business with a good attitude towards social responsibility. An area that could be improved regarding the company’s attitude towards social responsibility is in the matter of the store closings in high crime rate areas. One could argue that closing the stores because of the high crime rate could be a valid business decision, but when the company reported that the closings were due to losing money, it leaves the perception that the company is only interested in generating revenue. It is likely that since these stores were located in high crime rate areas, they were most likely located in low income areas as well. A first step in changing the company’s attitude toward social responsibility would be to re-open the stores. This would show the community and employees that Company Q is concerned with the community and its employees by creating jobs and opportunities in these areas...
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...Ethics and Social Responsibility Paper Ralph L. Kendrick MGT/ 498 September o4, 2013 Glenn O'Steen Ethics and Social Responsibility Paper Ethics and social responsibility has to be a part of any organization’s strategic management plan. Without the presence of these key elements the company could face some tough times. In this paper, the author will explain the ethical and social responsibilities of organizations as they relate to strategic management. In addition, the many ways an organization can meet stakeholders needs while maintaining ethical principles. The research of one company who crossed the line ethically will be discussed. Ethics and social responsibility Ethics and social responsibility are a necessity to any strategic management plan. An organizations lack of core values and ethics will determine the outcome of the organizations future. While making a profit is important, it should not be the only responsibility of an organization. The organization is equally responsible for the health and well being of the community. Often times an organization’s decisions affect more than the organization itself. The decisions of an organization impact the environment, community, economy, and the world. Organizations have many responsibilities that need to be in perfect balance in order for an organization to become successful. The responsibilities of an organization include: economical, legal, and social responsibilities (Wheelen & Hunger, 2010). Economic responsibilities...
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...ETHICAL ISSUES IN BUSINESS 2 Abstract This paper examines social responsibility issues within Company Q and offers ideas for areas of improvement. ETHICAL ISSUES IN BUSINESS 3 Corporate social responsibility is a double edged sward. On one edge is the corporation’s social responsibility to its shareholders, employees and suppliers to avoid business activities that reduce the financial success of the company. On the other edge is the public good. (Duff) Companies are often torn between the need to be competitive and successful and the expectation to be socially responsible. A company that is socially responsible conducts business ethically and is philanthropic while remaining profitable. Economic responsibilities include producing desired, quality goods and services at a reasonable price, while providing profits for shareholders. Companies also have legal responsibilities to comply with all laws and regulations. Lastly, successful companies support philanthropic activities and organizations that promote human welfare and goodwill in the communities they serve. Company Q is making business decisions based solely on profit. Their current attitude toward social responsibility is affecting their profitability and damaging the community’s perception of their business. Company Q is attempting to reduce profit losses by closing stores that are losing money. Company Q’s management needs to find ways to increase revenues and profit...
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