Social Responsibility of Business Entities

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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.

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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