Est 1 Task 1

Ethical Situations in Business

EST1

Competency 310.2.1: Ethical Issues in Business

A. Evaluate Company Q’s current attitude toward social responsibility.

Company Q, a small chain grocery store, has been presented with an opportunity to donate its day-old food items to a local food bank, but has instead chosen to dispose of that food due to fears of fraud or theft. The company’s decision to simply throw that food away, without consideration for any alternatives, sends the message that they are focused solely on their bottom line and hold very little regard for the well-being of the community they reside within and draw infrastructure from. It is no secret that image plays a huge role in a business’s success in the eyes of the employee and customer stakeholders. A company that fosters an apathetic image, one of indifference to its community, should not be surprised when that community choose to patronize the competition. Taking even a small amount of responsibility for the welfare of the community that surrounds them should serve to improve Company Q’s image greatly.

Additionally, the fear of theft sends the message that the company does not trust its employees, which has the negative impact of reducing job fulfillment and preventing feelings of cohesion within the company. Being a primary stakeholder within the business, it is important that the employees feel as if they matter, as if they are part of a family. Company Q’s concern about theft completely disregards the employee’s desire to support their own community. Stealing donated food could be viewed by the employee as essentially taking food out of their neighbor’s mouth. It is a valid concern that employees may steal some of the food, but Company Q takes the stance that since some may take advantage, then none should benefit. The company should consider if an employee is willing to risk their employment, and consequently their income and ability to support their family, then there is a good chance...