Company Q is a small grocery store chain; who has been asked by the area’s food bank for donation of their day-old products. Management declined deciding 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. After researching the topic of social responsibility there are some things that could be improved in this area.
First improvement would be protecting the reputation of the small grocery store. In small businesses, it is important to keep your stakeholders happy. Stakeholders are customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have “stake or claim” in the company or business (Ferrell, Fraedrich, Ferrell). If customers ...view middle of the document...
If you have constant worries about what your employees are doing when you are not looking, then you need to consider hiring more trustworthy employees. Perhaps do a pre employment screening before your hire someone. Make sure you check references and their background. You should have enough faith and trust in your employees that it shouldn’t have to interfere with your business decisions. Another suggestion would be to have your employees keep a log of food and items that are donated. That way you have documentation of what has been donated for referring back to if needed.
Finally, The last thing I would improve would be your philanthropic responsibility. This goes above and beyond the basic social responsibility. This refers to activities that are not required by a business, but that promote human welfare or goodwill (Ferrell, Fraedrich, Ferrell). This all falls under the topic of corporate citizenship. Which as stated in Chapter 2, “is often used to express the extent to which businesses strategically meet the economic, legal, ethical, and philanthropic responsibilities… and voluntary contributions that advance the reputation and stakeholder commitment of an organization” (Ferrell, Fraedrich & Ferrell, p. 39)
In conclusion, company Q has three areas that should be improved on. These being their reputation, their trust in the employees they hire, and the corporate citizenship and/or the philanthropic responsibility of the company. Basically, if you are not willing to help your community, and represent your business in a positive way, you are going to have a difficult time trying to get local support and customers down the road. Customers play a huge role in businesses; they are one of the main pieces to the puzzle. Without them, businesses could not survive.
Ferrell., Fraedrich., & Ferrell, Business ethics. (7th ed., pp. 37-39).
(Ferrell, Fraedrich & Ferrell)