Chick-Fil-A Corporate Responsibility
Ethics and Corporate Responsibility
Chick-fil-A Founder, S. Truett Cathy states that “Religion is at the key of the family-operated business, says Cathy, whose son Dan is the chief operating officer and whose other son, Bubba, is a vice president. According to the family patriarch, “Our decision to close on Sundays was our way of honoring God and directing our attention to things more important than our business.” The company 's stance on religion is so serious that part of its mission statement states: The purpose of Chick-fil-A is to glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come in contact with Chick-fil-A. Cathy has also told Forbes magazine, “The Lord has never …show more content…
spoken to me, but I feel Chick-fil-A has been his gift." In addition, “According to the company’s website, closing on Sunday sends two messages: It values their employee’s spirituality and places a high level of importance on its employees.”
The aim of ethics is to identify both the rules that should govern people’s behavior and the “goods” that are worth seeking. Ethical decisions are guided by the underlying values of the individual [and not the organization]. Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen (Belhaven, 2010). Corporate responsibility begins with a mission statement and values that are based on the Christian world view.
In 2002, a wave of accounting scandals shook the American business community. In print and broadcast media, the conduct of large corporations and highly paid executive came under a glaring public spotlight. Eventually, accounting malfeasance faded from national headlines, but the moment begs to be revisited. The scandals provoked broad speculation concerning the nature of corporate crime as pundits debated the merits of a “bad apply theory” emphasizing individual culpability rather than endemic corruption (Benediktsson, M., 2010).
The government viewed the scandals as a failure in corporate accountability. In response the government introduced new legislation in 2002, the Sarbanes-Oxley Act to bring about major changes to the regulation of financial practice and corporate governance. However, government regulations did not address the root cause, the failure of leadership brought about by self-indulgence, greed, absent values and deficient integrity. Management knew there were problems and failed to act according for fear of reprisal.
According to research conducted by the University of Michigan, "There are two primary reasons that people failed to speak up: 1) one is a feeling of futility and the other is a fear of retaliation whether being fired, demoted or ostracized. You can be retaliated against by your boss or your peers so there is a big risk in speaking up. (Mayer, 2013).
Today, individuals of conscience can report unlawful activity under the False Claims Act. Certain legal protections are afforded to whistleblowers. The two most important protections are the protection from retaliatory action and the provision of conditional anonymity (Whistleblower Protection).
Management could have profited by Jesus’ example of dealing with the money changers in the temple in Jerusalem. When he observed the activities of these extortionists and usurers in God’s house, he didn’t call for a committee meeting. He didn’t put the problem on the agenda for the next board meeting. He didn’t call in the spin doctors to discuss how best to handle the situation. He immediately and forcefully drove the slime-balls out. This is a powerful lesson for everyone in management (Briner, B., 1996).
Moral philosophy is defined as principles, rules and values people use in deciding what is right and wrong (Belhaven, 2010). From a Christian worldview, it is important to develop, train and bring in new leaders who exemplify Godly character, are hardworking, honest, and operate with a great sense of integrity. Leaders must also be competent, possess the necessary leadership skills, capacity, and faith to adopt and apply God’s principles within today’s workplace. In Exodus 18:2, “Managing through truth and honor, God wants us to consider, “ But select capable men from all the people—men who fear God, trustworthy men who hate dishonest gain—and appoint them as officials over thousands, hundreds, fifties and tens” (NIV, 1997).
God wants man to serve in positions of responsibility. In Exodus 20:14-17, “Managing through moral integrity, God tell us, “You shall not commit adultery; You shall not steal; You shall not give false testimony against your neighbor; You shall not covet your neighbor’s house; You shall not covet your neighbor’s wife, or his male or female servant, his ox or donkey, or anything that belongs to your neighbor” (NIV, 1997). “Leadership requires collaboration. People in positions of responsibility sometimes feel they are the only ones who can do necessary tasks but others are capable of handling part of the load. Proper delegation can multiply your effectiveness while giving others a chance to grow. Dishonest communication hinders relationships” (NIV, 1997).
Without honesty, a relationship with God is impossible.
If we lie to others, we will begin to deceive ourselves. God cannot hear us or speak to us if we are building a wall of self-deception” (NIV, 1997). To those who choose to disobey the law, God provides a warning, “Do not be deceived: God cannot be mocked. A man reaps what he sows. Whoever sows to please their flesh, from the flesh will reap destruction…” (Galatians 6:7-8).
However, for those who obey Gods law there is a greater promise. This promise is written in Psalm 24:1-5; “ The earth is the LORD’s, and everything in it, the world, and all who live in it; for he founded it on the seas and established it on the waters. Who may ascend the mountain of the LORD? Who may stand in his holy place? The one who has clean hands and a pure heart, who does not trust in an idol or swear by a false god. They will receive blessing from the LORD and vindication from God their Savior.
Chick-fil-A continually embraces the Christian world view and honors God with their business practices. The company mandates that every Sunday, all of his restaurants be closed to allow staff time to worship. Over the course of a year, the Sunday rule is estimated to cost the business about $500 million in lost income. Yet the company, credited with inventing the first fast-food chicken sandwich, is still very successful, with $2.96 billion in system-wide sales (the reported figure for 2008) and 1,450
restaurants.
In conclusion, Matthew 22:16, “In all things, for both employers and employees, Christ should be the model for Christian business, because He was known to be a man of integrity, even among His enemies” (NIV, 1997).
References
Belhaven, U. (2010). Principles of Executive Management 8th Ed. Chicago, IL: McGraw Hill Create.
Benediktsoon, M. (2010). The Deviant Organization and the Bad Apple CEO: Iedology and Accountabilty in Media Coverage of Corporate Scandals. Social Forces , 88 (5), 2189-2216.
Briner, B. (1996). The Management Methods of Jesus: Ancient Wisdom for Modern Business. Nashville, TN: Thomas Nelson, Inc.
LIfe Application Study Bible. (1997). Wheaton: Tyndale House Publishers.
Mayer, D. (2013, April 29). New Services, Office of the Vice President for Global Communications. Retrieved August 27, 2013, from University of Michigan: http://www.ns.umich.edu/new/releases/21431-blowing-the-whistle-on-bad-behavaior-takes-more-than-guts
Whistleblower Protection. (n.d.). Retrieved August 27, 2013, from Kenney McCafferty: http://quitam-lawyer.com/whistleblower-protection.html?_vsrefdom=quitam&gclid=CL6P9f6fnrkCFcvm7AodShgAaQ
Chick-fil-A Founder, S. Truett Cathy states that “Religion is at the key of the family-operated business, says Cathy, whose son Dan is the chief operating officer and whose other son, Bubba, is a vice president. According to the family patriarch, “Our decision to close on Sundays was our way of honoring God and directing our attention to things more important than our business.” The company 's stance on religion is so serious that part of its mission statement states: The purpose of Chick-fil-A is to glorify God by being a faithful steward of all that is entrusted to us and to have a positive influence on all who come in contact with Chick-fil-A. Cathy has also told Forbes magazine, “The Lord has never …show more content…
spoken to me, but I feel Chick-fil-A has been his gift." In addition, “According to the company’s website, closing on Sunday sends two messages: It values their employee’s spirituality and places a high level of importance on its employees.”
The aim of ethics is to identify both the rules that should govern people’s behavior and the “goods” that are worth seeking. Ethical decisions are guided by the underlying values of the individual [and not the organization]. Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen (Belhaven, 2010). Corporate responsibility begins with a mission statement and values that are based on the Christian world view.
In 2002, a wave of accounting scandals shook the American business community. In print and broadcast media, the conduct of large corporations and highly paid executive came under a glaring public spotlight. Eventually, accounting malfeasance faded from national headlines, but the moment begs to be revisited. The scandals provoked broad speculation concerning the nature of corporate crime as pundits debated the merits of a “bad apply theory” emphasizing individual culpability rather than endemic corruption (Benediktsson, M., 2010).
The government viewed the scandals as a failure in corporate accountability. In response the government introduced new legislation in 2002, the Sarbanes-Oxley Act to bring about major changes to the regulation of financial practice and corporate governance. However, government regulations did not address the root cause, the failure of leadership brought about by self-indulgence, greed, absent values and deficient integrity. Management knew there were problems and failed to act according for fear of reprisal.
According to research conducted by the University of Michigan, "There are two primary reasons that people failed to speak up: 1) one is a feeling of futility and the other is a fear of retaliation whether being fired, demoted or ostracized. You can be retaliated against by your boss or your peers so there is a big risk in speaking up. (Mayer, 2013).
Today, individuals of conscience can report unlawful activity under the False Claims Act. Certain legal protections are afforded to whistleblowers. The two most important protections are the protection from retaliatory action and the provision of conditional anonymity (Whistleblower Protection).
Management could have profited by Jesus’ example of dealing with the money changers in the temple in Jerusalem. When he observed the activities of these extortionists and usurers in God’s house, he didn’t call for a committee meeting. He didn’t put the problem on the agenda for the next board meeting. He didn’t call in the spin doctors to discuss how best to handle the situation. He immediately and forcefully drove the slime-balls out. This is a powerful lesson for everyone in management (Briner, B., 1996).
Moral philosophy is defined as principles, rules and values people use in deciding what is right and wrong (Belhaven, 2010). From a Christian worldview, it is important to develop, train and bring in new leaders who exemplify Godly character, are hardworking, honest, and operate with a great sense of integrity. Leaders must also be competent, possess the necessary leadership skills, capacity, and faith to adopt and apply God’s principles within today’s workplace. In Exodus 18:2, “Managing through truth and honor, God wants us to consider, “ But select capable men from all the people—men who fear God, trustworthy men who hate dishonest gain—and appoint them as officials over thousands, hundreds, fifties and tens” (NIV, 1997).
God wants man to serve in positions of responsibility. In Exodus 20:14-17, “Managing through moral integrity, God tell us, “You shall not commit adultery; You shall not steal; You shall not give false testimony against your neighbor; You shall not covet your neighbor’s house; You shall not covet your neighbor’s wife, or his male or female servant, his ox or donkey, or anything that belongs to your neighbor” (NIV, 1997). “Leadership requires collaboration. People in positions of responsibility sometimes feel they are the only ones who can do necessary tasks but others are capable of handling part of the load. Proper delegation can multiply your effectiveness while giving others a chance to grow. Dishonest communication hinders relationships” (NIV, 1997).
Without honesty, a relationship with God is impossible.
If we lie to others, we will begin to deceive ourselves. God cannot hear us or speak to us if we are building a wall of self-deception” (NIV, 1997). To those who choose to disobey the law, God provides a warning, “Do not be deceived: God cannot be mocked. A man reaps what he sows. Whoever sows to please their flesh, from the flesh will reap destruction…” (Galatians 6:7-8).
However, for those who obey Gods law there is a greater promise. This promise is written in Psalm 24:1-5; “ The earth is the LORD’s, and everything in it, the world, and all who live in it; for he founded it on the seas and established it on the waters. Who may ascend the mountain of the LORD? Who may stand in his holy place? The one who has clean hands and a pure heart, who does not trust in an idol or swear by a false god. They will receive blessing from the LORD and vindication from God their Savior.
Chick-fil-A continually embraces the Christian world view and honors God with their business practices. The company mandates that every Sunday, all of his restaurants be closed to allow staff time to worship. Over the course of a year, the Sunday rule is estimated to cost the business about $500 million in lost income. Yet the company, credited with inventing the first fast-food chicken sandwich, is still very successful, with $2.96 billion in system-wide sales (the reported figure for 2008) and 1,450
restaurants.
In conclusion, Matthew 22:16, “In all things, for both employers and employees, Christ should be the model for Christian business, because He was known to be a man of integrity, even among His enemies” (NIV, 1997).
References
Belhaven, U. (2010). Principles of Executive Management 8th Ed. Chicago, IL: McGraw Hill Create.
Benediktsoon, M. (2010). The Deviant Organization and the Bad Apple CEO: Iedology and Accountabilty in Media Coverage of Corporate Scandals. Social Forces , 88 (5), 2189-2216.
Briner, B. (1996). The Management Methods of Jesus: Ancient Wisdom for Modern Business. Nashville, TN: Thomas Nelson, Inc.
LIfe Application Study Bible. (1997). Wheaton: Tyndale House Publishers.
Mayer, D. (2013, April 29). New Services, Office of the Vice President for Global Communications. Retrieved August 27, 2013, from University of Michigan: http://www.ns.umich.edu/new/releases/21431-blowing-the-whistle-on-bad-behavaior-takes-more-than-guts
Whistleblower Protection. (n.d.). Retrieved August 27, 2013, from Kenney McCafferty: http://quitam-lawyer.com/whistleblower-protection.html?_vsrefdom=quitam&gclid=CL6P9f6fnrkCFcvm7AodShgAaQ