Company Q
The thought that businesses, not matter how big or small, should be socially and ethically responsible is not a new concept. Many believe businesses should help to increase positive changes on society and, in effect, decrease the negative impacts that could happen.
In the example we see Company Q, a small grocery stores in a large city. Due to crime that comes along with living in a large metropolitan area, they have had to close two of their locations because they were losing money from all the shoplifters. The example states that it took several years of requests for Company Q to offer healthy options and organic produce, and the supply they did bring in was limited and high priced. When asked to donate day-old food to and by a local food bank, Company Q declined. They believed that they would lose money due to employees taking the food home, rather than bringing it to the donation center, so they decided to throw the old product out. Company Q ‘s decisions towards ethical and socially responsible business practices is questionable, at best.
All of the actions Company Q has taken allows for consumers and the general public to view them in a negative light. It would seem they are primarily concerned about revenue and profits, rather than the wellbeing of the employees, locals, and community. In order to attract more customer, which would increase profits and loss, the company needs to make some changes.
First of all, since the main focus of the company seems to be profit, they should not have closed the two stores that were in high crime areas. Instead, they should have simply installed security cameras around and inside each building. While there would have been some initial costs, the cameras would have dramatically decreased shoplifting. When someone feels they are being watched, they are less likely to steal. It also would have allowed for local customers to continue to shop there, rather than finding a new place to go once the business closed. This would have kept profits coming into the company and, in turn, kept stakeholders happy.
Another thing Company Q could do is lower the price of the healthy and organic foods they started selling. This is the only logical way to get the product off the shelves, and increase profitability. In today’s society, consumers are looking for ways to better their lives but eating better, but junk food is easier and cheaper to come by. By decreasing the price, Company Q would allow for their customers to make better choices, and keep them coming back for the high quality product. The lower price point would bring in more of the health conscious customers, thus increasing foot traffic for the rest of the store.
Now comes the social irresponsibility of the store manager refusing to donate day-old food to the local food bank. The owner is concerned with employees claiming to donate the items, and then taking the food home for themselves. The first step to solving this problem would be to hire more ethical employees, or learn to trust the ones they already have. A lack of trust in the workplace can lead to disgruntled employees. If the company didn’t want to hire new employees, but was still worried about the concept of stolen food, they could make a rule stating only members of management can take the food to the donation center. While this would create more work for management, it would ease minds as well. Also, let’s not forget about the tax credits that come from donations to charity. If Company Q were to develop these rules, they could be more comfortable in knowing that they are more socially responsible and taking care of the neighborhood.
If Company Q were to make the changes suggested, then they would show the community that its attitude toward social responsibility and ethical business practices is changing for the better. The proposed changes would bring about positive effects and minimize the negative ones. Furthermore, it would increase profits and revenue, while minimizing losses.