Whether made in business, politics, science, or sports, most decisions are judged as either right or wrong, ethical or unethical. Regardless of what an individual believes about a particular action, if society judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals. For this reason alone, it is important to understand business ethics and recognize ethical issues.
social responsibility, an organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact. Philosophers increased their involvement, applying ethical theory and philosophical analysis to structure the discipline of business ethics. Companies became more concerned Bowie contends that when a business also cares about the well-being of stakeholders, it earns trust and cooperation that ultimately reduce costs and increase productivity.24
Much evidence shows that social responsibility, including business ethics, is associated with
The opportunity that employees have for unethical behavior in an organization can be eliminated through formal codes, policies, and rules that are adequately enforced by management. For example, financial companies
Company Q is a small local grocery store chain located in a major metropolitan area. They have recently closed a couple of stores in higher-crime-rate areas of the city, reportedly because these two stores were consistently losing money. After years of requests from customers, all of their stores have started offering a very limited amount of health-conscience and organic products—all of which were high margin items. When asked by the area’s food bank for donation of day-old products, management declined deciding instead to throw the food away, citing worries over lost revenues due to possible fraud and stealing by employees who might say they are donating the food.
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Company Q’s Social Responsibility
Company Q is a small local grocery store chain. Unfortunately company Q is having a hard time with the idea of social responsibity, which in turn is hurting their business. Let’s first look at the definition of corporate social responsibility. This is a term that means a company big or small tries to maximize its positive impact on, investors, customers and on the community. Now let’s look at why Company Q is low on the evaluate scale of social responsibility.
Company Q has three areas that could use some improvements, in the regards to social responsibility. The first one is the donation of the day old products to the community food banks. The community will look bad on the company for just throwing the day-old products out. And there is a way of placing rules and regulations on the employees so the company is not losing profits and having to deal with fraud.
The second one is that the company has taken years to respond to their customers asking for health conscience and organic products. And then after finally getting some health option the store only offers limited amounts. Because the company took a long time to respond to their customers need. The consumer thinks that the company really does not care too much on what they need or think.
The third one is losing their two stores in a high-crime area that was reportedly losing money. Having two abandoned store does not give the company a good look, it shows stockholders that the company cannot flourish and survive. And also the company’s reputation with their consumers starts to go down, and less people will go to their stores.
By seeing just these three areas of company Q’s ethics it is clear that the company is not seeing the big picture on being social responsibly. The company is on the low end of leaving a positive impact on its customers, investor and their community.
The company is not responding to the consumers’ needs and wants, in a timely...
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