Ethical Situations in Business
Ethical Situations in Business
Competency 310.2.1: Ethical Issues in Business
Business Management / October 2012
Abstract
This essay examines the ethical and socially responsible courses of action in a given business situation. 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.
Ethical Situations in Business 3 A Culture of Trust The ethical and social responsibility of a company encompasses doing the right thing for the business, employees and the community in which it resides. It is being conscience of the decisions made and the impacts of those decisions. Ethics start within the organization’s culture. Culture is developed and maintained through its leadership Company Q as several opportunities to do the right thing. First, being a small chain in a major metro area provides several advantages to leverage. Larger chains have more bureaucracy and red tape to go through as well as limitations on how involved they can be within a community. A smaller chain would likely have more flexibility to become integrated within the communities it has a presence. For example, Company Q being in a higher crime area could partner with community leaders and local law enforcement to create crime watch programs and increase security systems for both public and private locations. Secondly, Company Q did show a positive initiative by
Competency 310.2.1: Ethical Issues in Business
Business Management / October 2012
Abstract
This essay examines the ethical and socially responsible courses of action in a given business situation. 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.
Ethical Situations in Business 3 A Culture of Trust The ethical and social responsibility of a company encompasses doing the right thing for the business, employees and the community in which it resides. It is being conscience of the decisions made and the impacts of those decisions. Ethics start within the organization’s culture. Culture is developed and maintained through its leadership Company Q as several opportunities to do the right thing. First, being a small chain in a major metro area provides several advantages to leverage. Larger chains have more bureaucracy and red tape to go through as well as limitations on how involved they can be within a community. A smaller chain would likely have more flexibility to become integrated within the communities it has a presence. For example, Company Q being in a higher crime area could partner with community leaders and local law enforcement to create crime watch programs and increase security systems for both public and private locations. Secondly, Company Q did show a positive initiative by