TASKSTREAM 310.2.1 – Ethical Issues in Business At a time when many small, local, independently owned stores are being overtaken and overwhelmed by much larger retail entities, some of these smaller retail providers are striking back at the behemoths by increasing their social responsibility footprint, and participating in the revitalization of their communities. However, in Company Q’s case, their commitment to corporate citizenship could use a little help. After closing stores in less-than-desirable neighborhoods due to lost revenues, responding slowly to repeated customer requests for popular items, and finally refusing to participate with their community food banks due to concerns that employees might steal donations before they could be delivered, Company Q needs to take a closer look at their attitude towards social responsibility. Social responsibility can be divided into four interrelated areas, with each part providing a foundation for the ones that follow. At the base is economic responsibility, with its focus on providing wealth and value for stakeholders.
Competency 310.2.1 Ethical Issues In Business EVALUATION From the information given, it seems that company Q has a negative attitude towards social responsibility. Company Q has begun to listen to the needs of its customers, and is attempting to address those needs by supplying the desired products. However, it seems that company Q is selective in which customer’s needs it will address. By closing two stores in high crime rate, or in other words, lower income areas, they have sent the message that they appeal only to a more affluent crowd. Also, company Q’s only concession to changing policies is to begin carrying high margin, or high cost, products at all of its stores.
Ethics play a role in everyday business. Company executives attempt to build a profitable organization but unethical decisions lead to the demise of organizations because of greed and power. Penn Square Bank and Dow Corning both made decisions in their business that started out making millions of dollars but in the end cost the companies more than possibly imagined. Because of the unethical decisions made by both companies they acquired large losses of money by one filing bankruptcy, and the other closing down. Not only were there large losses of money for both companies, but the loss of reputation as well.
Although many might argue that Wal-Mart is misleading its customers by using the opening price point, I believe that overall Wal-Mart prices are lower than their competitor’s prices. At my work, I conducted a little survey by asking my colleagues if they think Wal-Mart is good for America. My colleague’s responses were based on consumer’s point of view and stated that Wal-Mart is a good store to have, pointing out the convenience and low prices. However, our society is not only comprised of consumers and shareholders. There are also workers and suppliers, who don’t think that Wal-Mart is good for America.
A business is then formed from these people, and they become business people. Business people use their services to produce whatever a consumers demands, when these demands are fulfilled, the consumer pays and then the business gains money. If businesses want to gain more money, the business must spend more money, more money spent means more money flowing through the economy. A strong economy makes a strong government, and a strong government makes strong people to support the government. Although the business cycle is not as simple as I stated, fundamentally that is how it works, by using their greed business people end up helping everyone instead of hurting, and thus business people are captains of industry.
The Broken Window theory is the idea that “broken windows”, “graffiti”, and “vandalism” will damage the safety and perception of a neighborhood if the problem is not addressed early on. When issues like these are left unattended, they become bigger problem, sending a signal to criminals that no one cares about the neighborhood, making it a great place for crime to run rampant. The citizens of the community will begin to fear the streets and will stay inside, reducing community efficacy. Withdrawals from the citizens of the community will only intensify the crime and harassment that takes place on the streets. Essentially, the smallest problem that stains a community can snowball into a situation that grows far worst with each passing day.
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,
Also the lack of teacher & student relations has even ruined my generation we feel as though there’s no one to fight for us. Are neighborhood crisis is just as bad as our education crisis and that’s just as bad as our financial crisis. These are the top three issues we face. For some it’s hard to acknowledge experience and use it to humble themselves. Instead we look at the worst and allow it to worry us.
Do you blame your loss of business on this new ‘big box’ discount store? Do you give up and close the doors to your business? If you ‘give-up’ and close the doors, was it because you were ‘fat and lazy’? More than likely you are not competitive because you did not know how to compete with these ‘big box stores’ locating in your local market. The authors Taylor and Archer have published their second book on knowledge for competing and prospering in the wake of a retail giant.
Around August of 2007, banks become afraid to loan money out due to the fact that they did not want to suffer from losing money yet again. “This led to the $700 billion bailout, and bankruptcies or government nationalization of Bear Stearns, AIG, Fannie Mae, Freddie Mac, IndyMac Bank, and Washington Mutual. By December 2008, employment was declining faster than in the 2001 recession.”(useconomy.com). With so many foreclosures on houses, many americans were either homeless, or had bought a cheap apartment to keep them from being homeless. Because of the recession, and bad economic, many Americans have no jobs, and barely have a house.