Est1 310.2.1-05 Essay

1044 Words5 Pages
Business Ethics and Social Responsibility Objective 310.2.1-05 Ethics is commonly defined as doing the right thing, a concept that, on its face, seems very simple and easy to accomplish. In the setting of business, however, ethics can become extremely complicated by the need to balance profitability, customer relationships, advertising, legal requirements for doing business, interaction within the community and a host of other issues which will arise before the business owners and managers.1 Given our example, the managers of the Company Q appear to be confronted with some of these issues. There is a basic need for any company to maintain profitability, or the ability to sustain and/or expand the business will not occur. It appears, from the example that the difficult decision had to be made to shutter two of their stores due to the profitability issues caused by operation within high crime inner city locations. Management also made the decision not to donate stale products to local charities, citing the potential for fraud and abuse should they do that. A third issue brought up was the decision to offer a limited inventory of health-conscious and organic products, after long-standing and repeated requests from their customer base. All three of the cited issues that Company Q is dealing with appear to have the decision process driven solely by the impact on the profitability of the company, without regard to anything else, which evidently is the perspective from which the company is operating. The stores were closed because of sustained losses, the day-old food is discarded rather than donated to a food bank because there may be some donated that does not meet the criteria for donation and the inventory of customer requested products is limited due to the high margin on those products and the potential to lose money if they don’t sell. Profitability is,
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