Company q’s attitude to social responsibility

Posted: November 04, 2016


Business entities should be socially responsible, work towards increasing positive effects on society while minimizing the adverse effects. Small businesses should work towards creating strong ethical business practices and setting sound policies and procedures that govern their employee’s activities. The concept of social responsibility comprises of business actions and events and their impact on the community it operates in as well its other stakeholders. It involves listening to the needs of the community and looking for ways to improve the society as a whole and still stay in business. "To be socially responsible means profitability and obedience to the law are the most critical conditions when discussing the business ethics and the extent to which it supports the society in which it operates with contributions of money, time, and talent” (Caroll, 1983).

Key words: business entities, socially responsible, stakeholders



Looking at the given example, it seems that Company Q is using a fear-based approach to social responsibility and numbers only to business. The company is not socially responsible, and this is shown in the way they handle issues.

 The company’s decision to stop operating in a higher crime area since they were making continuous losses had a negative impact. Had the company been socially responsible it should have looked for ways to improve security in the area by partnering with the community. Closing the stores left the company’s employees unemployed, and this could result in increased number of crimes due to idealness and lack of a passive source of income. Many locals mostly shopped in there before the stores closure and thus their closure had a negative impact on the community. The move went against social responsibility attributes like; community support, consumer protection and fair competition.

 The company started offering health conscious and organic products recently after years of customer persuasion. The client is an important stakeholder, and all their needs and complaints addressed first. The company should have started offering the products during the first year of the request and at a friendly price and not exploit its customers. The company’s worst decision was, however, opting to throw away food instead of giving it to the needy locals (by donating it to the food bank) who among them spent their hard earned money in the store. Choosing to throw food away over feeding the hungry had a negative implication to the company as it clearly shows the company wants profit over community support.  The decision is a clear indication that the company does not care about the people and it could impact the business through negative reputation. The company does not trust even its employees to dispose of correctly the items would be written off as a loss either way. That adds to the list of negative implications the company has on its stakeholders.


Small chain companies like Company Q has more flexibility thus easier to become integrated into the communities they have a presence. Instead of the company closing its operations in the higher crime areas it could have explored other options that would have improved the community and increased their profits.  The company could have partnered with the local law enforcement body and community leaders, and together they could create crime watch programs and look for ways to improve the security systems in both public and private sectors. The move would also mean creating a few job opportunities for the locals, and this would result in improved stores profits while making an investment in the community.

Many companies are developing strategies and plan to help them be socially responsible while still maintaining their profit goals.  Company Q’s attitude towards social responsibility needs focused improvement, and so does its numbers only approach. All companies are after increasing their sales and profits, but there are lots of intrinsic and fiscal benefits of applying social, philanthropic ethics that Company Q should evaluate. The company could come up with fun activities and involve the community as well as donation kitties and give the proceeds to the food bank thus help the needy while still making profits. Participation in activities that supports the community is a crucial part of any small business’ growth and success.

Company Q needs to improve its public image. The company location i.e. a major metropolitan area should be an indicator of a sustainable business with a solid consumer base. The company should conduct research on ways to improve their business by engaging the locals and also improving its employee’s welfare by offering a better working environment for them and trusting them more. An idealized design helps managers of a company to achieve not only their CSR objectives but also promotes a better understanding of the system, enhances creativity, simplifies the planning process and accelerates implementation (Ackoff, 2002).


Corporate social responsibility mitigates risk, improves a company’s reputation, increases sales and profits. CSR is an ongoing commitment so proper planning should be put into place to avoid business failure in the future. 


Ultimate discount!

Check the discount here

Order now