Part A
In this particular scenario, the company’s present attitude towards social responsibility lies majorly with economic social responsibility. Despite already giving into consumer demand and introduced more organic and health conscience products, the company still feels safe if shareholders still held a margin on the new products. Instead of assisting and putting more effort on failing stores, they opted to close them. Also they are more on economic responsibility is their need for increased profit, shareholders refused to offer food to the local food banks fearing loss of revenue through. The actions portrayed by this company make them socially irresponsible. This is because; most organizations and companies strive to be a complete company. This means that no only to they aim to attain shareholder profit but also strive and offer to assist surrounding communities that they conduct business in.
Part B
Surprisingly, most companies are driven with the prospects of immense profit; particularly large organizations with numerous shareholders that need or want their investments returned an act that is very innocent. Nevertheless, these returns will only be achieved through support of their local communities. Company Q has not committed any crime or broken any laws and has a responsibility to take a personal initiative of social responsibility and assist its community. After making profits they should be willing to give back to the community which ensures they make profits. The company refused to donate a day old products to local food banks quoting a fear of lost revenues through fraud and employee theft. The company’s worry is valid, however with proper systems and effective supervision in place, the company will be able to donate and assist the community and in process improving their image. A proper way can be through implementing a chain of approval of food before it is donated, for example, before food is donated, it must be approved by the station supervisor and get the management approval and receipt. With such an effective system in place, the company will ensure they do not experience theft or fraud and also be able to assist its community.
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The company also made a decision to close their stores that were in areas considered to be in higher crime zones quoting that allowing the stores to function brought about several losses and such losses hurt the company’s image. In their eyes, this was a strategic business plan that will cut of losses and increase profit however these high crime rate areas will turn to other available services and opt completely of the company as their neighborhood has been deemed not good enough. This community will also form an attitude towards the company and with each side having an attitude a rapport will be hard to achieve later on. Other than reacting in this manner the company should have improved security in the stores in these areas, by doing this they would have improved their services and areas as well, this is because few crimes will occur in the presence of law enforcement.
In order to increase their image in the community, company Q should not close down stores however it should strive to become more socially responsible. By listening to consumer demands and adding more health conscious and organic food they made profits and met consumer needs, nevertheless the need for profit should not prevent them from being socially responsible (Furrer, 2013). By giving out a day old food to food banks, they also create an image, therefore the company should make small changes that will not only boost their profits but also help the local community.
References
Furrer, O. (2013). Integrity and Corporate Governance: Controlling Managers and Meeting Corporate Social Responsibilities. Integrity in Organizations , 480-497. doi:10.1057/9781137280350_25
