Chick fil As Management Ethics Case Study

January 12, 2023

Chick-fil-A’s Management Ethics Case Study

Order Number	65965744573524
Type of Project	ESSAY/DISERTATION
Writer Level	PHD/MASTERS CERTIFIED
Format	APA/MLA/HARVARD/OXFORD
Academic Sources	10 -20
Page Count	4-8 PAGES

Instructions/Descriptions

Chick-fil-A’s Management Ethics Case Study

The decision-making process employed by management to address the ethical dilemma.

After weighing several possibilities, strategic decision-making involves selecting the best course of action to further the company’s objectives. The actions taken by Chick-fil-A were intended to uphold the company’s social duty while also raising Chick-fil-A’s profile throughout the nation. The administration decided to promote Straight Marriage Groups by giving money and contributions to organizations like the Focus on the Family and Marriage and Family Legacy Fund since they have solid Christian beliefs (Lapan, Quartaroli & Riemer, 2012). The corporation faced criticism from the LGBT+ community after CEO Dan Cathy stated that the organization supports entities that oppose same-sex weddings. Human rights advocates have increased pressure on Chick-fil-A to acknowledge the LGBT+ minority after the corporation came under fire for these views and its charity contributions to pro-Christian organizations like the Fellowship of Christian Athletes and the Salvation Army. Due to protests by LGBTQ organizations, the corporation was compelled to close several of its outlets.

Chick-fil-A tried to convince supporters it would continue to back the organization in response to the criticism. Initially, the corporation was trapped in its judgment and adhered to its Christian values. The choice was successful because same-sex marriage proponents continued to patronize the restaurants, and the corporation ensured that its best-selling item retained its highest sellers. The stance taken by Chick-fil-A demonstrated the benefits of standing up for one’s principles. Finally, the business had to alter its principles and stop funding anti-Same Sex Groups (Suryawanshi & Ronge, 2012). The corporation chose to support other companies, such as those combatting malnutrition and the climate, even though their commitment to CSR was upheld.

The corporation decided that starting in 2020, it will no longer provide donations to organizations with anti-LGBT attitudes. Instead, Chick-fil-A would take a more targeted approach to its charitable donations by supporting youth education, battling malnutrition, and preventing child homelessness (Suryawanshi & Ronge, 2012). The donations will be dispersed through Covenant House International, local food banks, and Junior Achievement USA.

The organization did not explicitly assert it had already stopped contributing to organizations that promote anti-LGBT+ feelings. However, company President Tim Tassopoulos made it clear that perhaps the new approach is a reaction to the blowback it obtains over charitable contributions. This allowed the company to preserve its conventional source of revenue while also attempting to avoid the moral dilemma of sidelining LGBT+ groups (Suryawanshi & Ronge, 2012). Rather than outright refusing to give contributions to individuals who are anti-LGBTQ+, their new CEO indicated that they knew who they were and that it was necessary to uphold the company’s beliefs (McNew, 2015). With Tim as president, Chick-fil-A decided to create an inclusive business strategy and to donate to every group that requested it. The new policy was directed at both religious and non-religious institutions.

The company was on course to become the third-largest fast-food chain in the United States. Thus the LGBTQ statements did not significantly affect profits, which is why they took this approach. The CEO’s allegations, meanwhile, are challenging to corroborate because the business is privately held (Suryawanshi & Ronge, 2012). Nevertheless, LGBTQ organizations assert that despite the company’s moves in the right direction, the business franchise remains not equitable. Workers at the enterprise are upbeat about the significant innovations since the profits increased.

Chick fil As Management Ethics Case Study

-Crisis Response

Before choosing a course of action, Chick-fil-A took the time to comprehend the circumstance fully. Similar to other crises, the corporation did not realize the full impact of the sentiments until it faced a social media reaction, damaging its reputation. Even though Cathy’s remarks were delivered on a Biblical Recorder, Baptist Press and radio interview eventually published them. The interview became contentious among proponents of human equality due to its reposting on numerous social media outlets. Just fifteen days after the statements went viral, Cathy issued a media release because the remarks impacted numerous stakeholders.

The business stated that the political debate over same-sex unions and politics is not where its values and policy belong because they have evolved. The business reaffirmed its commitment to serving excellent meals, extending hospitality, and positively impacting everyone it interacts (Sisco, Collins & Zoch, 2010). A prompt response was required to ensure that the partners understood the situation’s gravity and clarified the company’s LGBTQ policy (Suryawanshi & Ronge, 2012). Before the business reacted, several public officials threatened to shut down the franchise in their regions, and some organizations were established on both sides of the argument. Throughout the crisis period, CEO Cathy did not continue to speak out.

The business maintained its principles opposing same-sex unions while handling the problem. Chick-fil-A employed a cohesive response that fostered consistency while systematically communicating with stakeholders. The business revised its position on LGBTQ issues and vowed to treat everyone with respect, regardless of their colour, ideology, or sexual preference. Chick-fil-A insisted that their traditions and culture remained unaltered and that they would withdraw from the conversation on same-sex unions. Furthermore, the business maintained its openness throughout the crisis by making itself accessible to the media and remaining prepared to provide any necessary information. All shareholder inquiries, particularly those concerning profitability during the crisis, were promptly answered. Cathy allowed Chick-fil-A to address the situation by not talking to the media during it to avoid a situation that would create further escalation.

The effectiveness of the incident management efforts is significantly impacted by the reply to the statement’s content. The management took sufficient action to limit additional damage and preserve Chick-fil-A’s reputation. While maintaining the everyday operations to the greatest extent possible, the administration maintained the crisis goals throughout the period. The business reaffirmed its commitment to treating every person with dignity and respect, irrespective of ethnicity, sexual preference, or beliefs. About 1600 franchises upheld the tradition (Suryawanshi & Ronge, 2012). Even though an individual owner handles each franchise, the organization wants to positively impact everyone they come into contact with (Sisco, Collins & Zoch, 2010). Despite taking the position that everyone should be treated equally, Chick-fil-A continued to uphold its ideals based on religion. The business persisted in demonstrating that they run according to biblical standards and adhere to its beliefs.

How management decisions impacted employees, leaders, stakeholders, and shareholders of the organization

In the five months that followed, Cathy remained mute and watched the impact of the reaction on profitability. During the discussion where Cathy made incendiary comments, the corporation and its CEO Cathy deviated from the advised communication plan. Since the firm’s sales were temporarily increased due to the reaction, the stakeholders, personnel, and the public’s perceptions of the company’s core values were altered. However, a more significant proportion of stakeholders continued to support the company project. The corporation responded by denying the rumour’s origin and claiming that a fictitious Facebook profile was responsible for spreading it. The incident forced Chick-fil-A to take offence and control its brand (Sisco, Collins & Zoch, 2010). The corporation continued to handle its public image because it had to respond to inquiries from the despising parties (Compton & Miller, 2011), particularly on the significant charitable contributions the business could make to the anti-gay warriors, even though the management recognized that the backlash was unwelcome. The assertions made by Cathy did not contravene the Chick-fil-A policy.

Chick-fil-A was ranked among the leading brands in the American food franchise by the moment of the crisis. The score is based on various ratings, including reliability, affordability, perception, contentment, and desire to refer. Compared to the national average of 50, Chick-fil-A’s ratings dropped to 47 by the middle of the crisis. With such a rating, the shareholders thought they were left with no choice but to take action because the brand growth had suffered in the eyes of the public.

Denial was also utilized by the business to diffuse the problem. By arguing that its organizational duty has been misconstrued, it was accomplished. Cathy did not say much during that time, but he had a systematic reaction for image rebuilding to numerous stakeholders with different viewpoints (Chick-fil-A, 2012a, July 19). For instance, some stakeholders threatened to stop Chick-fil-A, while others demanded significant adjustments to the business’s daily management. One kind of reaction was CEO Accountability; this is because, when talking in his capacity as the firm’s director, the CEO continues to serve as the principal speaker for the organization and represents the company’s image, regardless of the leadership style.

The organization used the public relations and media strategy to address the ethical dilemma.

Chick-fil-A addressed the moral conundrum through television, the internet, and media platforms. Social media offered a different viewpoint during a period when it was less common, notably in times of crisis. Chick-fil-A leveraged social media to share announcements and respond to inquiries from stakeholders. For instance, the brand used Facebook posts to highlight its accomplishments and reassure its customers that the marriage policy would remain in place and that there was not any reason to be alarmed. According to Chick-fil-A, CEO Truett Cathy has always used concepts with a religious foundation. The business expressed gratitude to its devoted clients on Facebook for showing up amid the turmoil.

Additionally, the business concentrated on the claims stated in media releases. For instance, when Cathy made little remarks, she hinted at his error by saying that the company “cares for all people” (Horovits, 2014). Following the contentious remarks, Chick-fil-A adopted a rebuilding stance. By making this claim, Cathy reversed her earlier remarks on same-sex unions. Regardless, the business is still impacted by Dan Cathy’s 2012 statement’s fallout 2012. As a senior member of the Chick-Fil-A hierarchy, the COO’s remarks hurt the business. The CEO and COO both serve as a business’s public face. Therefore, Mr Cathy’s comments were taken to represent the viewpoint of Chick-fil-A as a company. The comments brought attention from the media to Chick-Fil-support A’s and donation practices. The media was aware of the restaurant’s involvement with numerous anti-LGBT movements and its frequent contributions to these groups. It only served further to damage the reputation of the enormous fast-food company.

References

Blaney, J. R., Benoit, W. L., & Brazeal, L. M. (2002). Blowout! Firestone’s image restoration campaign. Public Relations Review, 28(4), 379–392.

Compton, J., & Miller, B. (2011). Image repair in late-night comedy: Letterman and the Palin joke controversy. Public Relations Review, 37(4), 415-421.

McNew, C. (2015). Christian Chicken vs Mainstream Media: A Case Study Analysis of Chick-fil-A’s Stance on Traditional Marriage Using Situational Crisis Communication Theory. Liberty University.

Lapan, S. D., Quartaroli, M. T., & Riemer, F. J. (2012). Qualitative research: An introduction to methods and designs. Jossey-Bass/Wiley.

Sisco, H. F., Collins, E. L., & Zoch, L. M. (2010). Through the looking glass: A decade of Red Cross crisis response and situational crisis communication theory. Public Relations Review, 36(1), 21-27.

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Chick fil As Management Ethics Case Study

RUBRIC

Excellent Quality

95-100%

Introduction

45-41 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Literature Support

91-84 points

The context and relevance of the issue, as well as a clear description of the study aim, are presented. The history of searches is discussed.

Methodology

58-53 points

With titles for each slide as well as bulleted sections to group relevant information as required, the content is well-organized. Excellent use of typeface, color, images, effects, and so on to improve readability and presenting content. The minimum length criterion of 10 slides/pages is reached.

Average Score

50-85%

40-38 points

More depth/information is required for the context and importance, otherwise the study detail will be unclear. There is no search history information supplied.

83-76 points

There is a review of important theoretical literature, however there is limited integration of research into problem-related ideas. The review is just partly focused and arranged. There is research that both supports and opposes. A summary of the material given is provided. The conclusion may or may not include a biblical integration.

52-49 points

The content is somewhat ordered, but there is no discernible organization. The use of typeface, color, graphics, effects, and so on may sometimes distract from the presenting substance. It is possible that the length criteria will not be reached.

Poor Quality

0-45%

37-1 points

The context and/or importance are lacking. There is no search history information supplied.

75-1 points

There has been an examination of relevant theoretical literature, but still no research concerning problem-related concepts has been synthesized. The review is just somewhat focused and organized. The provided overview of content does not include any supporting or opposing research. The conclusion has no scriptural references.

48-1 points

There is no logical or apparent organizational structure. There is no discernible logical sequence. The use of typeface, color, graphics, effects, and so on often detracts from the presenting substance. It is possible that the length criteria will not be reached.