Lisa Tully
WGU - 000193652
October 19, 2012
310.2.1 - Ethical Issues in Business

Corporations have a duty to be socially responsible. Social responsibility is the “obligation to take action that protects and improves the welfare of society as a whole” (Ross, 1988). Company Q is a small local grocery store chain that recently made decisions to benefit their company but there decision were not considered socially responsible.
First, they closed stores in less desirable neighborhoods due to alleged profit loss reported from these stores. Secondly, customers have requested that Company Q provide healthier food selections and include organic foods. Only recently, Company Q considered these requests even though these products have a high margin. Lastly, Company Q has rejected requests by the food bank to provide “day-old” food to their charity instead they choose to simply to through this food away.
These decisions are a reflection of Company Q’s attitude toward social responsibility. In order for Company Q to become socially responsible they need to take a more proactive role in making a positive impact in improving the welfare of society. Additionally, “profitability and growth go hand in hand with responsible treatment of employees, customers, and the community” (Friedman, 1989).

First, instead of closing stores in urban less desirable neighborhoods, Company Q can continue to operate in these locations to show they are concerned with all their communities – not just their most desirable communities. One of the main areas in which businesses can become involved to protect and improve the welfare of society is in urban affairs (Friedman, 1989). Second, customers have requested healthier options in their food choices. Company Q was slow to provide healthier options to their customers. By doing so, they portray to their consumers the benefits of eating healthy and the positive social implications it could have on the community by doing so. Businesses should operate as an open system, with open receipt of inputs from society (Davis, 1975). Also, the high margin on these foods