Social Responsibility Task 1 Est1

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Competency 310.2.1: Ethical Issues in Business Social Responsibility of Company Q Company Q has recently closed two stores in a high-crime rate area of the city because they were consistently losing money. The company has met its ethical responsibility to its stakeholders. However, by closing the two stores they failed in its attempt to provide social responsibility to the community in which the stores were located. A company's first priority is to make a profit for its stakeholders, but they do have a social responsibility to the community in which the company resides. Most owners of a chain stores are said to be only interested in a making a profit instead of supporting the local community. By closing this store, the social responsibility has not been met, because it would increase the unemployment rate in the community, leading to more crimes. A growing number of consumers are becoming more aware of the products they buy, but also how the goods and services they buy have been produced. Consumers are concerned about human rights, environmentally harmful production and animal welfare issues that revolve around products they purchase. Customers are prepared to buy products from companies that have retailers who act ethically and socially responsible when purchasing products to sell in their stores. The customers from Company Q have requested that they carry health-conscious and organic products in their store. Company Q is starting to meet this social responsibility by offering these products in their stores. When Company Q’s management was asked by the area's food bank to make donations of day-old products, they declined deciding to throw the food away, stating they were worried the company would have lost revenues due to possible fraud and stealing by employees who may claim they are donating the food. This is clearly an example of not being

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