Recommendations for Company Q
EST1 Task 310.2.1-05: Ethical Situations in Business
Western Governors University
Mary Lyles - ID 000389714
September 7, 2014

Recommendations for Company Q
The main responsibility of a company is to make a profit for it's stakeholders, both the employees and the investors. Company Q has taken this priority to heart and has overlooked the benefits of the other responsibilities of their involvement in the retail business. The admission of not donating the day old food to a local food bank stems from an inherent distrust of their employees. The current distrust will become more tangible as the managers and employees are not treated with the respect they are earning and will certainly breed unhappy employees which will in turn result in lower sales. Another one of the issues regarding the public service of Company Q is the closing of the two unprofitable stores in high crime areas. If the closure was done without analysis of why the stores are unprofitable, the surrounding community would suffer in regards to availability of merchandise . Offering some high margin health conscious items without surveying the viability of these items is also an issue. Company Q can take some planned, simple steps in resolving these issues with a manageable, well thought out ethics program.
Recommendation One
Company Q could create a program to donate the expired day-old items to the local food bank. This program would become the responsibility of the store manager and include processes that ensure the donation becoming regular and committed. The donation would become a positive public relation shift from the current process of just disposing of the items. Employees who work in the stores are also members of the local community, who would benefit from the donation not only with goodwill but perhaps as a member of the food bank. In today's socially visual environment, throwing away food in a dumpster would be considered inappropriate and the disposal could be brought to social awareness by the employees. Processes should include verification of donations and a written document for the manager on the process of determining when the expired product is to be written off and donated. This recommendation would eliminate the perceived distrust toward the employees by discarding the items. Employees who sense a distrust from their company will not behave in the best intent for Company Q. This change will make sure the employees do feel empowered and trusted by the company.
Recommendation Two
Company Q should require an analysis of the surrounding area before closing or opening a store. The closing of the stores in a high crime area because of a decline in profits rather than an understanding of why the profits declined would produce frustration, especially with the employees and customers of the stores. An analysis with regard to the ethnic makeup, economic level of the community, what products were offered and if the products were priced according to that economic level would be beneficial in the decision to close a location. Another benefit of the analysis would help the profitability of a location is by the suggestion of products in the ethnic makeup or economic level of the surrounding community. If the high margin healthy products are out of the price range of the community and is something that they do not want or need, the stores' profitability will decline. An understanding of what local customers want and can afford would alleviate the bottom line of these stores.
Recommendation Three
Company Q should establish an updated ethics program. An updated and complete ethics program would be extremely beneficial in establishing trust and cooperation between the employee and the company. There currently is a breakdown between the two, but a well written program would spell out what is required of the employee and in Company Q. In addition, social awareness and public opinion would improve the morale and retention of employees. Improved morale and retention of employees would then be realized with increased profits and visibility in the community. If Company Q would trust and give more responsibility to the employee, the community will respond with increased sales.
"There 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." (Friedman, 1970). Company Q's change of management to a more socially conscience corporate attitude will benefit not only the management but the morale and activities of the employees along with a more socially acceptable view from the public.

References

Friedman, M. (1970), The social responsibility of business is to increase its profits
The New York Times Magazine, September 13, 1970. Retrieved from http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html