Company Q Corporate Social Responsibility

While maximizing profits is considered an important responsibility for a company to accomplish, it is not more important than fulfilling the responsibility of being socially responsible to the society in which it operates. Social responsibility can be defined as the duty of businesses to behave ethically and with sensitivity towards economic, cultural, and social issues. In other words, businesses are socially responsible when they maximize the economic, cultural, and social benefits of all their close associates such as employees, investors, and customers. When companies put all of their focus on profits, this usually brings companies repercussions such as bad reputation leading to a decrease in profits. Companies need to be both conscious of increasing their profits as well as meeting the demands of their stakeholders. Company Q is a clear example of what companies should not be doing. In an effort to stop losing money, this company closed two stores in higher-crime rate areas, provides a …show more content…
This is something that company Q was not keeping in mind because their actions were negatively affecting many of their direct stakeholders which included employees and customers. Company Q was putting their own interests before the interests of employees and customers, which caused employees to lose their jobs and customers their access to daily sustenance. While being more worried about maximizing their own profits, company Q lost sight of maximizing the benefits of their customers and employees. Although it is important for companies to prioritize profitability, it is equally important to be socially responsible because it develops long-lasting relationships between their employees and customers. These relationships guarantee companies increasing profits and long-term