Chocoholics Anonymous Business Analysis

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The purpose of this memo is to discuss the opposing views of shareholders and stakeholders, evaluating our decision based on multiple ethical principles, focusing on Chocoholics Anonymous profitability, and ethical integrity. Chocoholics Anonymous experienced a decline in sales and decrease of profits during the economic downturn, as did the other companies in Iowa City. These companies fired employees to save money, which caused a large unemployment base. In order to control the increasing unemployment rate, the local economic development group cautioned local firms to avoid layoffs. The internal managers of Chocoholics Anonymous now have a conflict about the decision to keep or fire a full-time manager. By discussing and analyzing the different…show more content…
The primary stakeholders are defined in the book as any group on which an organization relies for its long-term survival (Williams, 2015, p.81). Primary stakeholders include groups such as the government, local communities, employees, and suppliers. We will focus primarily on the concerns of the employees and what helps our community. The stakeholders view supports the wellbeing of the company through stakeholders and the model states that it is a theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders (Williams, 2015, p.80). The employee 's job security fluctuates as we make major decisions. Employees see this as a concern since unemployment has risen around their community. In an article written by Jeff Smith, The Shareholders vs. Stakeholders Debate mentioned “that a manager’s duty is to balance the shareholders’ financial interests against the interests of other stakeholders such as employees, customers, and the local community, even if it reduces shareholder returns” (Smith, 2003). Another concern of our employees includes the potential stress from removing one of the managers and the feeling of instability for their own jobs. If the stakeholders are happy, the company has a longer lasting stability such that they have…show more content…
Social responsibility is defined as a business’s obligation to pursue policies, make decisions, and take actions that benefit society (Williams, 2015, p.80). Even though laying off employees during this time is not illegal, the local officials recommend and advise the companies not to do so. To exercise our social responsibility, the best decision would be not to fire employees because of the support needed by the local officials. Concerns for the local officials could reflect unemployment resources and lawful payouts. As the unemployment rates go up, the local officials has to find ways to bail out the population or all the businesses in the area will fall into debt. “To assist individuals and families meet some basic needs, public assistance programmes offer resources to qualifying individuals. Ideally, these resources are meant to stabilise a family 's economic decline, at least minimise a decline, until circumstances improve”(Shao, McKinney, & Shao, 2012, p.76). The government bails out the unemployed with financial costs from the taxes from the employed men and women. This increases the spending power and also the economic activity; however, this also increases taxes. The local officials support our decision to keep the full-time manager to reduce the unemployment

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