Social Responsibility of Business Entities
Some people believe that businesses have a duty to create a good impact on society while providing a profit for their shareholders, this is social responsibility. While the concept of social responsibility has many believers and critics, it has been shown that consumers will not purchase goods or services from a company they feel is not trustworthy. A company's reputation does play a role in determining if it succeeds or ultimately fails.
In the given scenario, Company Q has made some business decisions that require
analyzing. Company Q has closed two stores in areas of the city that are considered
“bad”. They have finally, after a long period of time and with high prices, started
carrying organic and health-conscience foods. Lastly, Company Q has turned down a
local food bank's request for day-old products and instead have just thrown that food
away. It is clear that Company Q does not believe that they have to be socially
responsible to the city. These types of decisions could lead Company Q to have a very
bad reputation among consumers in the area. They only seem concerned with their
bottom line, which could prove to be a costly mistake and bring along the end of the
Company Q should evaluate the decisions they have made and repair some of
their damaged reputation by acting more socially responsible. First, Company Q should
not alienate the good people that live in the high crime-rate areas of the city. If the areas
are close together they could open one store in an area between the two sections of town.
The company could offer lower priced products to entice residents to shop there and
beef up security if they are worried about thefts. Second, Company Q should listen to
their customers and not make them wait too long for the products they desire. They
should also carry organic and health-conscience foods that are affordable to a...
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