Company Q’s Attitude Toward Social Responsibility
Company Q’s current attitude toward social responsibility demonstrates a bias toward the outdated shareholder model, rather than the stakeholder interaction model of corporate governance, as well as a significant lack of concern for the fundamental wellbeing of some of its primary stakeholders. Arguably, however, even the shareholders themselves may ultimately be frustrated in realizing the maximum potential return on their investment in this company due to lost opportunities as a result of Company Q’s poor corporate citizenship and failures to achieve social responsibility.
By closing two stores which happen to be in higher-crime-rate areas of the city and justifying these closures …show more content…
Solutions to Improve Company Q’s Social Responsibility Deficit
The essence of Company Q’s corporate social responsibility as an organization, according to the definition provided in the text “Business Ethics – Ethical Decision Making and Cases,” is to maximize the good, and minimize the negative impact of its operations on its surrounding environment (Ferrell, Fraedrich, & Ferrell, 2009). This is an organization that provides goods which consist of a very basic fundamental need for the community. As such, it must give all due consideration to the broader effects its decisions might have, especially store closures, upon the whole surrounding community. In other words, this corporation needs to be aware of an extraordinary requirement in fulfilling its unique social responsibilities to the community upon which it depends. If managed effectively, meeting these needs may well result in even greater customer satisfaction, investor loyalty, community relations, and a stronger bottom line for Company Q.
Company Q should take a closer look at its stakeholder orientation. If directors or managers are not flexible enough to examine these issues creatively, personnel changes may be necessary. Applying what we have learned from the “Business Ethics” text, it is clear that a shift