Naperville Business Attorney Discusses Corporate Responsibility

corporate responsibility, Naperville business law attorneyWhen you own and operate a business, you have a wide variety of obligations. Obviously, you owe it to your customers to provide quality products or services at competitive prices. You also owe a duty to your shareholders and financial backers to make responsible decisions designed to further your company’s profitability. But what about your responsibility to your community—both locally and beyond?

As an individual, I understand the importance of being a good neighbor and a responsible citizen of the world. As an experienced business law attorney, I believe that businesses of all sizes should take a similar approach, even if it might mean compromising a competitive edge on occasion.

A Change for Better

If you have used name-brand Saran Wrap in the last decade or so, the quality of the plastic wrap may not have been what you remembered it to be. You may have chalked it up to an exaggerated memory, but that is not actually the case. The characteristics of Saran Wrap were changed in 2004 when the product was reformulated. The new version is not quite as sticky, and the odor barrier it provides is slightly less effective.

The reason behind the change, however, is enough for many to give SC Johnson—the company that makes Saran Wrap—a pass. In the late 1990s and early 2000s, scientific research emerged regarding certain components of the plastic wrap that were proving extremely harmful to the environment. When presented with that information, SC Johnson had two choices. The company could reformulate Saran Wrap and possibly lose some of its competitive advantage since the toxic components were key to the wrap’s performance. The other option was to do nothing and risk losing public trust for ignoring the scientific findings.

SC Johnson chose to come up with a new formulation for one of its most popular products, and its edge in the plastic wrap sector began to erode. The company was also forced to modify its marketing strategies, as it could no longer make the same claims regarding the wrap’s performance. SC Johnson Chairman and CEO Fisk Johnson does not regret the decision, despite declining sales. “Changing Saran Wrap’s formulation was the right thing to do,” he said. “And that’s something you just can’t put a price on.”

Facing Difficult Decisions?

If you are faced with tough choices regarding the direction of your company, an experienced Naperville business law attorney can help you weigh all of the relevant factors. We will provide the guidance you need and the trusted representation you deserve. Call 630-756-1160 for a confidential consultation today.

 

Sources:

Madison.com

Harvard Business Review