Supermarket Ethics Case Study

Supermarket Ethics Super Q is a small chain of stores that offer grocery and personal/home items. In 2015, Super Q had nine stores in the western part of the state; the half being located in smaller, suburban areas and the remainder in larger, urban neighborhoods. When analyzing profits, the operations team noted that the stores located in areas with higher crime rates have lower profit margins compared to their suburban counterparts; as these areas tend to also be low-income. Due to this analysis, the operations team closed two stores. For the past several years, customers have requested the addition of healthier produce and food items, including organic and locally-grown products. Because of the higher cost and perishability of such items, each store was initially given a restricted amount of produce. The stores in the suburban neighborhoods were successful in selling the majority of their product lines with little waste; however, the stores in the lower-income urban neighborhoods struggled with selling even a fraction of their product. This, in turn, has caused profit loss due to spoilage. Suggestions to combat waste have included donation of day-old items to charity organizations such as soup kitchens, homeless shelters and food banks. These

Charitable contributing to store neighborhoods, either by monetary or product donations is common place in socially-responsible corporations. This not only helps local residents and future customers, but increases interest in the location; a win-win situation, as consumers tend to shop with their consciences. The decision to destroy day-old produce rather than donating it to residents in need can be seen as not being as socially responsible as area competitors who donate to local charities. This, in turn, can sour the reputation of Super Q as an ethical corporation and drive away