Is Chipotle A Socially Responsible Organization? Why Or Why Not?

1. In order to implement an organizations commitment to social responsibility it is necessary to identify what social problem the organization intends to address, develop policies on what the organization plans to do to successfully fulfill its obligation and ensure stakeholder buy-in. The main obstacles an organization faces when implementing socially responsible policies is pressure from stockholders and business analysis who want steady increase in earnings. Without steady increase in profits, it becomes difficult to reinvest money in these areas. The following actions can be taken toward increased social responsibility:

Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales.

Because corporations are established to profit and shareholders invest money with expectations of a greater return, managers cannot be given a directive to be “socially responsible” without providing specific criteria of checks and balances to which needs to adhere. Therefore, it is imperative to the success of a corporation for managers to not act solely but rather to act within the policies of the shareholders.

John Mackey, founder of Whole Foods once said "Business social responsibility should not be coerced; it is a voluntary decision that the entrepreneurial leadership of every company must make on its own." (Mackey, 2005) In today’s society it is increasingly common for businesses to actively identify and become directly involved in the country and the global social issues and needs. It is now common

Social responsibility in business can be defined as the obligation an organization has to minimize its negative social impact on stakeholders and to maximize its positive impact. In this case study we are introduced to a small local grocery chain referred to as Company Q. Located in a major metropolis, Company Q has recently closed some stores in areas of the city with higher crime-rates. They have started to stock a very limited amount of organic and health-conscience products after years of requests from their customers. Management has declined participating in a program to send expired food to a local food bank based on fears of employee theft by means of taking advantage of the situation. Based on the

The final area that could be improved regarding the company’s attitude toward social responsibility is to offer a larger selection of health-conscience and organic products. Though these products come at a higher margin, the requests made by consumers show a demand for products of this type. By offering a better selection, Company Q demonstrates concern for the health and well-being of the community attracting new business and increasing profitability which by definition is socially responsible.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

After many years of customer requests, Company Q began selling a very limited amount of health-conscience and organic products. When local food banks asked for donations of day-old products, management declined due to worries over employee theft and fraud. If Company Q had looked at this request through the eyes of a socially responsible business, they could have donated the left over products to those in need, which in turn, would have given the perception that Company Q is concerned about the people in the neighborhood. When the residents of a neighborhood see or feel that a company is giving back to the community, they are more willing to patron the business. “The actions of a company color the perceptions, behavior, and well-being of its customers, prospects, and the community at large, affecting its own health as well as that of the world around it.” (McKee, 2012) Employees who work in the grocery store would also feel a sense of pride that their employer is giving back to the people who spend their hard earned money at their store. Employees who are happy and proud of where they work have less

Because Company Q is a small, local grocery store in a major metropolitan area it can at times be very over whelming. Big chain stores are putting family owned stores out of business on a constant basis. This reason, along with social responsibility taking hold of companies, brought on by consumers demanding that companies adjust their thinking from a profit-seeking standpoint to being socially and ethically understanding to all consumers in their business ventures.

The expectation that businesses behave responsibly and positively contribute to society all while pursuing their economic goals is one that holds firm through all generations. Stakeholders, both market and nonmarket, expect businesses to be socially responsible. Many companies have responded to this by including this growing expectation as part of their overall business operations. There are companies in existence today whose sole purpose is to socially benefit society alongside businesses who simply combine social benefits with their economic goals as their company mission. These changes in societal expectations and thus company purpose we’ve seen in the business community over time often blurs the line of what it means to be socially

In health crisis matters, it is imperative that organizations who are at fault communicate with compassion when addressing the public and the media. Companies who apply this practice successfully are able to improve their credibility, provided their chosen spokesperson presents themselves as compassionate and empathetic when addressing the issue. By appearing genuine concern for the wellbeing of their consumers, and outlining necessary steps being enacted, a company can rebuild its public perception as consumers see their concerns being taken seriously and are thus are more likely to respond positively. Communicating with compassion and empathy is a tactic that Chipotle employed quite successful during the backlash of their second E. coli outbreak. Chipotle’s co-CEO and founder Steve Ells applied this practice during his appearance on NBC’s the Today Show on December 10, 2015 where he addressed the food poisoning allegations plaguing the business. When

Chipotle, like many other businesses, faces many ethical problems. Currently, the future of Chipotle is unknown due to an E. Coli outbreak, however, I feel like that is something that has the potential to happen whenever a business sells food. Chipotle has faced what I feel is an, even more, important ethical problem. Chipotle’s marketing is really where they have shown how unethical they really are. Through Chipotle’s marketing, they have continuously falsely advertised their company. Their advertising tends to raise more questions than provide answers to its viewers and they are misleading in the way that things really are.

Business Law helps to give a basis for right and wrong, beyond morality; therefore, it is an important consideration when deciding whether a business practice or decision is ethical. A company who is cutting corners to skirt regulations would be unethical. The discussion case on Chipotle using illegal immigrant workers for cheap labor would be an example of this. The company verified employees by obtaining documentation which met the minimum requirements of the law, but they did not have systems in place to verify that the documentation was valid, and they turned a blind eye to cases where false documentation had been presented. This made the company’s decision to not implement verification systems unethical. Knowing the laws and regulations

Abstract Today businesses should do more than just generate maximum financial returns. It has become important that businesses operate in a socially responsible way which is accepted by its different stakeholders. Therefore, it is important for businesses to be aware of who their stakeholders are, to come up to their expectations, and also to realize how they can affect the business and vice versa. Due to

We here at Chipotle Mexican Grill take our role as a support to the community very seriously. Three ways that we can strive to uphold the highest standards of social responsibility are: