Est1 Task 1

EST 1

January 9, 2015

Social responsibility is an organizations obligation to maximize its positive impact on stakeholders and to minimize its negative impact (Ferrell, Fraedrich & Ferrell, 2009, p. 13). In this scenario, company Q is faced with several ethical issues that directly impact the company itself, as well as, the community it serves. With the decisions made by Company Q, it is evident that they are only concerned with the positive impact for the sake of their stakeholders, while disregarding the needs and concerns of the local community, thus increasing their negative impact. There are several different approaches and solution alternatives to combat the issues at hand, decreasing negative impact to the company and surrounding community.

Business Ethics is defined as, how moral and acceptable business decisions made to grow a business or, for a business to thrive are perceived by the public and those who support that business (Ferrell, Fraedrich & Ferrell, 2009). Based on the definition of business ethics found in chapter one, there is clearly a lack of morals on Company Q’s part. For a business to thrive, a business must make decisions, not only for the benefit of the business, but also for the benefit of the community it serves. There are two problems with Company Q’s decision making in the given scenario. One, the company closing the doors of two of their stores in high crime rate areas due to loss of revenue. Problem number two is their decision to opt out of donating day old food, which would otherwise be thrown in the trash, to the local area food bank. Viewing the decisions company Q has made, it is evident that Company Q is only interested in the well being of itself.

Morally, in correlation with business ethics and social responsibility, Company Q would be wise to agree to donate day old food to the local area food bank when approached with the opportunity. A concern of the company’s was the possibility of loss of revenue...