Social Responsibility of Company Q

Social responsibility is when companies and businesses try to have positive relations with the society they are in. When a company is socially responsible, then they are also trying to increase stakeholder wealth. Social responsibility is essential for any company. Company Q’s current attitude towards socially responsible is not good because it is an outdated concept. Company Q is currently focused on the shareholder’s model instead of a stakeholder’s model and that can make stakeholders feel concerned about the company’s lack of corporate social responsibility. When customers have asked for more health-conscious and organic products, they have begun offering a limited amount of health and organic products. Also, when the food bank asked for donations management has decided to decline and instead throw day-old products away because of worries of fraud due to loss revenues. Lastly, in the highest crime rate areas they have closed two stores because it’s losing money. These problems prove that they are not focused on a stakeholder’s wealth instead, they are focused on a shareholder’s wealth. How can they be better?

First, instead of offering a limited health and organic products, the company could offer more of those products. When customers for years, been asking for more health and organic products, the company just started offering these products. However, only in limited quantities with limited products have they started selling them. The company proves a lack of concern for their customers. When the company offer more of these options, this shows the company is at least trying to be more concerned with the customers that served them. This is one way to be more socially responsible.

Second, when asked by the area’s food bank for donations of day-old products, the management should decide to donate the day-old products to the food banks instead of focusing on loss of revenue due to fraud. The company will be superior at social responsibility because they are giving back to the society that they're situated in. When a company decides to give resources that they don’t need but are still valuable to the community. The company figured