Corporate Social Responsibility as a Management Tool

Miranda Cummings

Assignment 2

2-3:15

Corporate Social Responsibility as a Management Tool

        Petco first started its business as a veterinary supplies shop in 1965 by Walter Evans called UPCO. Its early customers were ranchers, kennels, catteries and grooming shops (About Petco). In 1979 it became Petco, a brand that could meet the changing needs of the pet supply business and consumers in over 1300 stores (About Petco). Recently there has been an investigation of pet illnesses possibly linked to Chinese manufactured pet products after receiving over 4,800 complaints of pet illnesses (Niedziela). According to the U.S. Food and Drug Administration, over 5,600 dogs and 24 cats have become ill over the past seven years after eating Chinese made jerky treats, killing at least 1,000 pets (Niedziela). There has not been a conclusive link to the jerky and the pet's illnesses but most of the jerky reported was made in China. How could the decision maker, CEO of Petco, Jim Meyers balance the competing pressures between  retaining a major supplier at an affordable cost of the company and keeping its customers and consumers happy by providing healthy and safe products.

        According to Milton Friedman, "only people can have responsibilities (Friedman)."  The fact that some animals are getting sick from Chinese made jerky does not mean Petco has to do anything about it. Milton also says that stockholders or customers have the freedom to spend their own money on whatever they want to spend it on (Friedman). Customers do not have to buy Chinese made products, there are many American or other made brands for people to buy. China is Americas biggest supplier so they can get their products cheap and make a profit. Milton discusses in his book Capitalism and Freedom, that the only responsibility of a business is to make a profit as long as it is legal (Friedman). On the other hand, according to Donna Wood, Jim Meyers' decision should be based on what the values of Petco are and also what motivates Petco as a pet store (Donna)? Would his decision be based solely on meeting minimum requirements by health food standards or on meeting customers' high pet health and safety standards. The principles that motivate Petco need to be strong in order for company success in the long run. How far would Petco go to maintain the companies commitment of animal health and safety? The company is obviously aware of the complaints of reported pet deaths and illnesses, to what degree will they do something about it if at all? Lastly, what will the outcome be for Petco? Will the company continue to sell Chinese made products or will it go as far as removing Chinese pet products entirely? What will the impacts be on the company for both of these scenarios? After going through Donna Wood's approach Jim Meyers should be able to look at the company's core values and make a good decision. If Petco follows Donna's approach I believe the company is doing an effective job at balancing the competing pressures in the management of this issue.