000268995 Maines EST1 Task 310.2.1-05
Company Q, having closed two stores in a higher-than-average-crime area due to consistent loss of money, appears as if it is concerned mostly about profit and less about the needs of their primary stakeholders. The closures affected the community by decreasing the number of available jobs, minimizing shopping options, and reducing taxes collected from its stores that could be beneficial to the area. While profitability is an important aspect of business, Company Q risks being perceived as having its own interests in mind which could potentially hurt its reputation and decrease the city’s desire to shop at their other locations.
While Company Q did respond to its customer’s request to carry organic and health-conscious items, it limited those products to high margin items. With its strong focus on profitability as opposed engaging in an opportunity to show social responsibility, Company Q risks losing stakeholder loyalty by seeming to be a purely profit-driven company. It might appear that the company is acting without regard to doing the right thing for its customers and the overall benefit of the community by offering items that mostly benefit the company’s bottom line and don’t truly satisfy the community’s needs for healthier options at an affordable price.
Lastly, Company Q has declined the request by a local food bank to donate their day old food. By throwing away the food, Company Q is contributing to a mounting waste problem and risks being viewed as a company that is not eco-friendly. Their concerns that employees will steal the food indicate a lack of trust in crucial part of their base of primary stakeholders. This lack of trust could lead to employee resentment and erode employee loyalty and morale. Employees and other primary stakeholders could also view Company Q’s lack of willingness to give back to their community as irresponsible and acting in their own self-interest. Media, as...