In an article in the New York Times Magazine, Milton Friedman said: "the fundamental mission of a business is to provide goods and services at a profit and, in doing so, , the said company makes its maximum contribution. towards society and is therefore socially responsible” (Friedman, 1970). Friedman's belief is a central concept of the shareholder model of corporate governance. It is clear that Company Q's behavior indicates that it subscribes to the Freidman Principle. Their only concern is to increase the wealth of their shareholders and investors, without worrying about the negative impact of their actions on the community. Q Company closed two stores in neighborhoods with higher crime rates, saying those stores were consistently losing money. Q Company further refused a request from the neighborhood food bank to donate old goods, choosing to throw them away instead. The company claimed that donating the goods would leave it vulnerable to loss of revenue due to possible fraud and theft by employees. Their claim of loss of income is completely unfounded as no income comes from food dumping. In both of these scenarios, Company Q displays complete disregard for the community that frequents it. Even knowing that the job loss caused by their withdrawal would further strain the economy of a community already in crisis, they persisted in their withdrawal. Additionally, their refusal to donate to the food bank using such flimsy and unfounded reasoning demonstrates the company's lack of corporate citizenship. The stakeholder-based model of corporate governance is the opposite of the shareholder model under which Company Q currently operates. This model considers that a company is responsible not only to its shareholders but also to others...... middle of paper ...... responsible corporate policies and culture improve image and reputation of a company, thus attracting the most qualified and competent employees. qualified employees in the market. Q Corporation operates under the ideal that it has no responsibility to its stakeholders, but only to its shareholders. This model of corporate governance is unethical and harms both the company and the community. Company Q's implementation of the above measures will improve its reputation and image, allowing it to reap the benefits of being a good corporate citizen. Works Cited Ferrell, OC (2010). business ethics, decision making and ethical cases, updated 2009. (7th ed., p. 40). Mason: Southwest Cengage Learning. DOI. www.cengage.comFriedman, M. (1970, September 13). The social responsibility of a business is to increase its profits. New York Times Magazine. DOI. www.nytimes.com