Report on Social Responsibility, Franchising, and Employee Turnover

This report explores the importance of social responsibility in business, highlighting its benefits such as improved brand image, attracting top talent, and gaining a competitive advantage. It also analyzes the advantages and disadvantages of franchising, including reduced risk and brand recognition versus limitations on creativity and high initial costs. Furthermore, the report examines strategies for reducing employee turnover in low-salaried jobs, such as flexible schedules, career path development, recognition, competitive pay, and improved communication. The report references several academic sources to support its findings, providing a comprehensive overview of these key business concepts.

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Q1. Benefits of a company for being socially responsible
To be socially responsible is to have awareness that an organization has an obligation of
helping the society. There are benefits that come with being socially responsible for the
company. They are both external and internal.
1. Building the company’s reputation and brand image- being socially responsible build
a company’s image, name and creates a positive reflection within the society. Trust
and goodwill is also cultivated through social responsibility.
2. Attracting and retaining top and best talent- a study conducted by Stanford university
in 2003 showed that MBA graduates sacrificed $13,700 in annual salary just to work
with a company that is socially responsible. Employees want to feel like they are part
of making the difference by working with socially responsible companies (Burns,
Paul, and Jim Dewhurst’s. 5)
3. Customers love companies that are socially responsible- Nielsen group conducted a
survey that showed that 50% of consumers are willing to pay more for goods and
services from a socially responsible company.
4. Social responsibility helps to engage employees- companies that engage its employees
in its social responsibility programs perform better. The employees feel like they are
part of the company’s larger vision.

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5. Social responsibility keeps a company more competitive- it helps a company stand out
from its competitors and positive impact creates a competitive advantage (Lee, Yong-
Ki, et al p.28).
Q2. Pros and cons of opening a franchise
Pros Cons
1. Reduces or lowers risks due to
backing from a larger established
corporation.
2. Brand recognition and inheriting of
a loyal customer base.
3. Collective bargaining power with
suppliers.
4. Loans are easier to get through
franchises than independently.
5. One receives training, expertise and
knowledge of the industry through
season leaders.
6. One is his own boss.
7. There are low costs of supplies
8. Franchises engage with corporations
that are already successful (Joachim
Zentes p. 11).
9. One can explore new opportunities
1. The initial investment or capital
outlay can be very high.
2. Franchising limits creativity
3. Financial statements and information
is shared with the corporation
4. Franchising contracts sometimes are
not permanent
5. Blunders by other franchises are tied
to all franchises which causes
reputational risks
6. There are restrictions on what one
can engage in, products to sell and
suppliers to engage with.
7. Monthly fees in royalties eat into the
profits of a company.

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in industries he or she has limited
knowledge on.
Q3. Ways in which employers can reduce employee’s turnover in low salaried jobs.
1. Employers can allow flexibility in working schedules of all employees
2. The employer can show the career path for an employee and encourage progression
through performance based engagements.
3. Giving praise to employees through recognition and encouragement.
4. Hiring the right people in the right job classification and managing expectations of
employees (Noe, Raymond A., et alp.12).
5. Paying competitively as compared to industry peers and offering end year
performance bonuses.
6. Employers can also adjust workplace policies and benefits
7. Main a good line of communication with employees.
8. Employers should also issue incentives and special projects
Works cited

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Burns, Paul, and Jim Dewhurst, eds. Small business and entrepreneurship. Macmillan
International Higher Education, 2016.pg 5
Lee, Yong-Ki, et al. "Market orientation and business performance: Evidence from
franchising industry." International Journal of Hospitality Management 44 (2015):
28-37.
Morschett, Dirk, Hanna Schramm-Klein, and Joachim Zentes. Strategic international
management. Springer, 2015.pg 11
Noe, Raymond A., et al. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education, 2017.pg.12