Ethics - Social Responsibility of a Business - Essay Example

Developing Corporate Social Responsibility in Grocery Stores Corporate ethics is a “set of universal moral standards” that govern the employees and business sectors to be trustworthy, respectful, responsible, equitable, considerate, and a good citizen (Schwartz, 2002, p. 27). Almost all companies in the US are incorporating CSR because it lessens the negative effects and enhances positive image. However, there are companies that are concerned of escalating revenue without recognizing the effect on stakeholders.

One example is the Company Q. To provide recommendations for improving the ethics of Company Q, problem identification must be the first step. 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 areas, it is recommended that the Q Company must improve its employee relations through incorporating adequate compensation, development training and teaching of the moral principles of an organization.

Moreover, employers must also practice code of ethics before teaching good moral conduct. Secondly, they must adhere to the principle of selling healthy products that signify their concern for the welfare of consumers. It will emphasize their devotion to CSR. Finally, the Q Company must strengthen their relation with the community, since they are the source of business profit. To improve community relation, they must invest in participating to the community programs through food donation, sponsorship, and environmental activities.

Grocery stores must apply the principle of corporate social responsibility because it does not only produce positive outcome, but it encourages the stakeholders to trust and rely on their services. ReferencesIngram, D. (2011). Code of ethics for food establishments. Retrieved from http://smallbusiness.chron.com/code-ethics-food-establishments-10815.htmlMaloni, M. J., & Brown, M. E. (2006). Corporate social responsibility in the supply chain: An application in the food industry. Journal of Business Ethics, 68, 35-52.

Schwartz, M. S. (2002). A code of ethics for corporate code of ethics. Journal of Business Ethics, 41, 27-43.