Corporate Social Responsibility
As corporations and businesses are challenged with the task of being competitive and profitable, sometimes business ethics are placed on a lower priority. The idea of “working the system” and pushing the envelope over ethical situations have plagued such corporations as Enron and WorldCom. Corporate social responsibility is no different: “it encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence.” (Harvard Kennedy School, 2008. Corporate social responsibility initiative. Retrieved from: http://www.hks.harvard.edu/m-rcbg/CSRI/init_define.html) Company Q is a small grocery store chain. They conduct business in a major metropolitan area, with some stores being located in high-crime areas. The company decided to close a few of their stores in the high-crime areas after experiencing a financial loss. Due to customer feedback, the store now offers products of a healthy and organic nature. These items produce a high return on investment. The local food bank has asked Company Q, along with other local businesses, for donations of day-old inventory. However, Company Q’s management team has declined to provide such donations and destroy old products instead. Their reasoning is that they are concerned about losing revenues because of employee fraud.
Reviewing Company Q’s situation, it appears they struggle with social responsibility on a few levels. First, they stated that the closing of the stores in the high-crime areas was due to a financial loss. The community, however, may see it as a tactic to move their stores out of these areas because of the fear of criminal activity. Is the company being socially responsible