Est1 Task1 310.2.1-05

979 Words4 Pages
Companies are in business to produce a profit for their shareholders. To make a profit one must consider all the stakeholders involved that make a business run. Stakeholders are the owners, employers, employees, investors, customers, suppliers, competitors, communities, media and government agencies. Some may think the only responsibility of business is to compete without fraud or deception and in a legal manner using its assets to increase profit. If you consider all the stakeholders, there is a responsibility to do more than make a profit. Without the communities, customers, and suppliers how long will a business be making a profit? There are four steps of social responsibility; economic, legal, ethical, and philanthropic. Social responsibility can be seen as a contract with society as a whole, to do no harm and perform for the welfare of the environment and society. As a chain of small local grocery stores in a metropolitan area, Company Q has closed two stores with the reason being loss of profit and that they were in a higher crime area. This would be a logical move on behalf of the investors and shareholders if profit is all Company Q is concerned about. Were these stores beneficial to the neighborhoods? Did the store workers get placed at other stores or were they laid off? If the stores were bought out by another company, this could benefit the employees and the customers in the neighborhoods, along with the investors and shareholders. There is an ethical and social responsibility to look at all the positive and negative impacts of such a decision. Company Q took years to answer customer requests for health-conscience and organic products. These products are high margin items which would bring more profit for fewer sales. This is a bonus for both the customers and the shareholders. If Company Q was concerned about its stakeholders this move would

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