Reference no: EM132253376

Scenario

You work for a PR agency that represents a large grocery chain (Budget Foods) that has expanded into low-income neighborhoods (where other grocers have resisted building stores). The grocery company has more than 100 stores in California and North western

Nevada and 22 of them in low-income neighborhoods. A local television station in northern California just completed an investigative story on Budget Foods comparing the quality of food sold in the low-income neighborhood stores with the quality of foods (produce, meat, and dairy) sold in the company’s other stores (in high income areas). The story alleges your client, Budget Foods is selling sub-standard food products in the lower income areas. For example, the produce, according to experts consulted by the producer, was older and of lower overall quality, and tests revealed higher levels of pesticide residue. The meat was ungraded (the lowest USDA grade) and sold under Budget’s own brand “Best Buy Beef.” And many of the other products sold on the shelves were “off brands” or close to “sell by” dates. The producer alleges Budget Foods is moving products that are close to their expiration date to these stores, to “move them before they expire” and the company does not lab test produce for these stores (like they advertise they do in the other stores) in an effort to save money.

Note : It is true that Budget Foods has been selling a lower grade of meat under their own name, products that are closer to their expiration or considered second-tier or generic brands, and produce that is not lab tested, because that would drive up the cost of the product and they are trying to provide products that are affordable in these areas that are socio economically challenged and no other grocer has been will to put a store in these neighborhoods, so management of Budget Foods believes they are providing a community service. Management believes these are fair trade offs to provide a store in these communities.

How do you advise them to proceed

Using the scenario below, do the following:

Identify the ethical issue at hand. List the top 3-5 key stakeholders of concern. There may be more stakeholders, but focus on the top ones of concern, based on the fact that they would likely have the greatest impact on the organization, given the situation presented. What is at risk for the organization? Which PRSA ethical code(s) are being violated, if any? (Found in your text and the ethics lecture slides). What are your specific recommendations PR for the company, BE SPECIFIC. What action(s) do you believe they should take to address this? How should they respond to the media, advocates, etc.?