How important is \"Social Responsibility?\" Do consumers really care about the w

Question

How important is "Social Responsibility?" Do consumers really care about the working conditions of labor when they get a good deal on a pair of shoes? Why do you think some companies engage in highly responsible practices....while others do not consider it a priority? Draw on some of the many companies we have looked at this semester, either in the lessons, from your research, or from the text. And more important...if you had a business...how do you think 'social responsibility; would 'fit' into your business plan? And would you feel the same way if you were not yet breaking even?

Explanation / Answer

Q1) Organization is responsible and accountable to multiple stakeholders who are directly or indirectly influenced by the organization’s operations and practices. The stakeholders for an organization include customers, business partners viz. suppliers, contract manufacturers, distributors etc., shareholders, investors, company board of directors, employees, general public, government and regulatory authorities etc. Hence, the actions of an organization affects one or more stakeholders. This makes it important for the organization to be responsible and ethical in its practices, processes and operations.

Q2) Consumers are mostly concerned with price of the products and any discounts offered. They normally are not concerned about the working conditions of labor but when any news regarding the mistreatment of labor spreads, consumers and general public condemn the same and this impacts the goodwill of the firm which might lose few consumers as well.

Q3) Some organizations mostly B2C businesses are highly concerned about their goodwill as any public relations issues that they encounter might result in loss of goodwill for the firms and affect the sales of their products/services. Few companies especially B2B businesses are not directly affected by the goodwill as there are always firms dependent on their products/services. Also, firms which have monopolistic products are not much concerned about the social responsibility.

Q4) Considering my business plan which is agriculture marketing where the farmers are provided a platform to sell their produce to the consumers directly without the involvement of any middlemen, it involves responsibility towards stakeholders i.e. customers who get to purchase fresh produce and farmers who get higher profits from direct sales.

Considering that it is difficult to breakeven with the current business model, the price of the products can be increased a bit while still providing quality produce for customers from the farmers directly.

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