Ethics - Social Responsibility of a Business Essay

Ethics - Social Responsibility of a Business - Essay Example Based on the situation presented, Company Q is neglecting three areas of responsibilities: employee relations and labor, product safety and liability, and community relations. Furthermore, the scenario suggests that employer suspects of the possible fraud due to the reported incident of losing profit. In depth investigation results to the cause of employee’s poor ethics is the below minimum salary given to them. Ingram (2011) asserts that the common trend in grocery stores is paying low wages for employees, but practicing excessive labor. Thus, the company is violating the labor code and its responsibility to the employees. The consumers requested for the reopening of their store, but they provide high margin items which are not health-conscious, but generate high profit. It may be that competition is not stiff, so the Q grocery store is confident to offer low services. Another possibility is the increased demand of customer for local store; hence, switching cost is unnecessary. However, code of ethics states that companies must offer healthy food choices that adhere to the standard of product safety (Maloni & Brown, 2006). This has been one of the CSR issues that grocery stores must address as part of their commitment to society. Lastly, the rejection of donating day-old goods to the food bank is an indication of poor conduct. As part of the community, company Q must offer help through donations to charities, including governmental organizations. It is the primary response of companies to meet the expectation of stakeholders. The management was apprehensive of the implication of their food donation that will give reasons for employees to commit fraud. This reasoning is creating havoc that will produce disloyalty from consumers and employees. According to the study of Maloni and Brown (2006, p. 40), philanthropic acts develop and invigorate employee’s commitment, and gain competitive advantage. Based on the three