1 Chapter 1 THE PROBLEM AND ITS BACKGROUND Business Ethics is a form of professional ethics that examines principles and moral problems that arise in all types of business environment. It applies to all aspects of business conduct of the business owner and is relevant to the conduct of individuals and entire organizations. The scope and quantity of business ethical issues reflect the interaction of success-maximizing behavior with non-economic concerns. Today majority of businesses promote their commitment to noneconomic values under headings such as ethics codes and corporate social responsibility. Business Ethics regulates areas and details of business behavior that lie beyond the control of the government. The rise of large corporations with limited relationships and sensitivity to the stakeholders with which they interact accelerated the development of ethical standards in business. Business Ethics reflects the business philosophy, one of these philosophies is to determine the basic objectives of a company. The corporate persons, as they are called, are legally entitled to the rights and liabilities due to a natural person. Corporations responsibility will be to make as much profit for the owner as possible while conforming to their 2 basic rules of the society, both conforming to natural law and ethical custom. The question therefore is, do corporate owners have ethical responsibilities in their business activities other than to make as much money for their stockholders as possible? Another view of business is that it must exhibit corporate social responsibility. Corporate entities are legally treated as persons in some respects. This can be interpreted to imply that they have independent ethical responsibilities. Stakeholders have the right to expect a business to be ethical, if business has no ethical obligations, other institutions could make the same claim which would be counterproductive to the corporation. Some ethical issues include the rights and duties between a company and its employees, suppliers, customers, its responsibility to its shareholders, and also to its competitors in the same industry. Issues concerning relations between competing companies include hostile takeovers and industrial espionage. Related issues include corporate governance, corporate social entrepreneurship, political contributions, legal issues such as the ethical debate over introducing a crime of corporate manslaughter.. There are also issues regarding fairness in trading practices, trading conditions, sales practices, and tax payments to the government, which all fall under the umbrella of finance and accounting. In addition, 3 human resource management talks about the scope of activity of recruitment selection, orientation, performance evaluation, training and development, industrial relations and health and safety issues for the employees as well as for the customers. Business Ethics advocates differ in their perceptions towards ethics in employment. Some of them say that human resource policies should be according to whether they support the dignity of labor. Issues including employment, salary and collective bargaining can be seen either as inherent rights or as a negotiable right of the employees. On the other hand, discrimination by age, physical appearance, race, religion, and disability. Employers must consider workplace safety, which may involve modifying the working environment, or providing annual training or informing them about hazardous areas in the workplace. Meanwhile, business ethics in marketing deals with the principles, values by which marketers should act. Marketing ethics is also a blurred area, a conflict between profitability and other concerns. Ethical marketing issues include marketing dangerous products/services transparency about environmental risks, transparency about product ingredients, possible health risks, respect for privacy of the consumers, advertising truthfulness and fairness in pricing & distribution. and 4 To go with the comprehensive compliance and ethics programs, many companies have formulated internal policies pertaining to the ethical conduct of employees. They were created to identify the company's expectations of workers and to offer guidance on handling some of the more common ethical problems that might arise in the course of doing business. It is expected that such policy will lead to greater ethical awareness, consistency in application, and the avoidance of ethical disasters in companies. Some companies even require their employees to sign agreements stating that they will abide by the company's rules of conduct. Should a lawsuit occur, the company will avoid it because its employees will follow the rules. The company can also claim that the problem would not have arisen if the employee had only followed the code properly. Sometimes there is disconnection between the company's code of ethics and the company's actual practices. Every day, there are business that are being established, and every time a new business is launched anywhere in the world, whether a sole proprietorship or a full blown corporate enterprise, the owners must adopt a code of ethics for the business. For small businesses, the code is usually unwritten and sometimes not even discussed and decided upon, 5 but still a code exists. While in Larger businesses, there are often written codes of ethics and employees are trained to comply with them. Business owners who set aside ethics by promising one thing and delivering another thing usually do not last long in the industry. A code of ethics must encapsulate the beliefs and values of the organization. Those beliefs and values should become internalized by all employees and used regularly in all business practices, no matter what type of business it is. There are varying degree practicing Codes of ethics. It varies among businesses, and also from one country to another. Some Asian companies, for example, would never think of trying to create a monopoly, force other companies out of business, or use intimidation to acquire a dominant position in the market. But few western organizations would create a code of ethics that intended to consciously avoid a powerful stance in the marketplace. When a business grows large enough to expand its operations into other countries, they hire local talent to assist in training existing personnel with regard to the understanding of cultural norms of the country where the new operation is located. All employees must be treated equally, and any issues of inequality must be dealt with. More than ever before, today’s consumers give much pay a great deal of attention to corporate governance and proper behavior of businesses and their owners. Because the marketplace is flooded with 6 numerous variations of the same businesses, promises must be fulfilled and the price and quality of products must be equal to what is advertised, or another business will step in to deliver. Therefore, a code of ethicswhether unarticulated or formally documented-is vital to ensuring that a business will succeed. Those business ethics that are both defined and acted upon is part of the business culture of every successful business, and must become the goal of every business owner. Growing a successful business through the use of sound ethical principles will reap not only the benefits of growth and prosperity, but also the satisfaction on their part Some of the ethical problems in the Fast food industry is that they spend more money than ever on marketing campaigns and making large profits than ever before. healthy for the body. It has been proven that eating too much is not This is the very first ethical concern with the fast food industry. If the excess calories that are used in the production of fast foods continue, more and more of the population will have health complications. In effect it will decrease the amount of customers these companies cater to. Another ethical problem is that these fast food companies are taking advantage of employees who are working in a fast paced environment. Working in a Fast food is becoming faster and faster, with 7 less time in the day left for personal time. This is largely due to the increasing work week hours implemented by the fast food chains. Fast food companies are profiting by offering a quick stop for food for the consumers since there is never enough time for these consumers to cook their own food at home. Nevertheless, the responsibility falls on both the fast food industry and the consumers. Each consumer is responsible for his own food They should be responsible enough to take time to exercise if they are eating unhealthy foods. They should also be aware of how bad fast food is for the body. At the same time, fast food companies should make an honest effort to offer healthy food to the public. Fast food chains nowadays are ignoring the fact that they have ethical responsibilities to their stakeholders, namely, the employees, the consumers, the government, the suppliers, and the general public. They put more premium on their profit rather than on customer satisfaction. They are not aware that being ethical has a role in attaining more profit, and ultimately in attaining more success in their businesses. It is in the above context that the researcher came up with the study, ”The Role of Business Ethics in the success of the Fast Food Chain in Quezon City: Towards a Guide”. 8 STATEMENT OF THE PROBLEM The study aimed to determine the role of business ethics in the success of fast food chains in North Fairview, Quezon City: towards a guide to enhance management of businesses during the year 2013-2014. Specifically, it sought answers to the following questions: 1. How may the respondents be described in terms of: 1.1 1.2 1.3 1.4 age, gender, civil status, and educational attainment? 2. What are the existing business ethics practices that are observed by the fast food chains as to: 2.1 2.2 2.3 2.4 customer and employee welfare, quality of food, professionalism, compliance with rules and regulations on health and safety, and 2.5 community and environmental protection? 3. How effective are the aforementioned business ethics practices of the fast food chains? 4. What are the problems encountered with regards to business ethics of the fast food chains and how are these resolved? 5. How may the findings be utilized in crafting a guide to improve the 9 existing business ethics practices toward better service? ASSUMPTION This study is guided by the following assumptions: 1. The data gathered are valid and reliable. 2. There are existing business ethics practices that are observed by the fast food chains. 3. The aforementioned business ethics practices of the Fast food chains are moderately effective as tool in business operation 4. There are common problems encountered with regards to business ethics of the fast food chains and suggestions on how to resolve these are offered. 5. The findings may be utilized in crafting a guide to enhance the existing business ethics practices toward better service. 10 SIGNIFICANCE OF THE STUDY This study is deemed significant and may provide valuable contributions to the following: The Fast Food Establishments for them to identify preferred values of the Fast food chain that may ensure sound organizational behaviors and then aligned those values and then training all personnel about the policies and procedures. The Managers and Supervisors for this study may help the Managers and Supervisors to guide the employees in situations where the ethical course of action is obviously needed. It may also help the managers to create a climate of integrity and excellence, communicate its expectations to the staff, suppliers, and customers. Employees for them to enhance their morale, pride, and loyalty. It may also help to promote constructive social change by raising awareness of the customers’ and community’s needs and encouraging employees to help. The Researchers for them to fulfill their desire of knowing why organizations have different success-failure rate when it comes to management of fast food chains. It will contribute to address the ethical 11 problems of the businesses, the root of those problems, and how to solve those problems. Future Researchers for them to know if the results of this study are also applicable to their own organization or workplaces, or would it also be applicable to other Fast Food chains. The Students of Business Administrations for them to become socially responsible business leaders and to be competitive in today’s business market without having to forfeit the morality of the business man. SCOPE AND DELIMITATION OF THE STUDY The study aimed to determine the role of Business Ethics in the success of Fast-food Restaurant Chains in North Fairview, Quezon City. Specifically, the researcher focused on the Three Fast-food namely: chains Jollibee, McDonalds and, Chowking during the calendar year 2013-2014. 12 DEFINITION OF TERMS For a clearer and better understanding of the study, the researcher defined the following terms according to its conceptual and operational meaning: A la Carte Meal means that all the items on the menu are separate, meaning you have to order it to have it. For example if you want a steak, baked potato and a salad you would have to order all those items. if you wanted just a steak that is all you would get. Business Ethics is the behavior that a business adheres to in its daily dealings with the world. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer. Business resources are anything and everything that helps a company operate and do business. This can include the use of human capital, natural resources, tangible resources such as property or production machinery, intangible resources such as brand image and knowledge, financial resources and anything else a particular business may use to make a profit. Code of Conduct is a set of rules outlining the responsibilities of or proper practices for an individual, party or organization. 13 Competitive Advantage is a superiority gained by an organization when it can provide the same value as its competitors but at a lower price, or can charge higher prices by providing greater value through differentiation. Corporate Accountability is the act of being accountable to the stakeholders of an organization, which may include shareholders, employees, suppliers, customers, the local community, and even the particular country(s) that the firm operates in. Corporate Governance is a term that refers to the rules, processes, or laws by which businesses are operated, regulated, and controlled. Corporate Manslaughter is a crime which enables a corporation to be punished and censured for culpable conduct that leads to a person's death. Corporate Philanthropy is the charitable donations of profits and resources given by corporations to nonprofit organizations. Corporate philanthropy generally consists of cash donations but can also be in the form of use of their facilities or volunteer time offered by the company's employees. 14 Corporate Social Responsibility is the belief that a company should take into account the social, ethical, and environmental effects of its activities on its staff and the community around it. Deceptive Advertising is the use of false or misleading statements in advertising. Drive-Through is a driveway exterior wherein the window positions a customer in a vehicle to look inward and downward to view and direct the food selection, preparation and packaging of food in a restaurant. Environmental Stewardship refers to responsible use and protection of the natural environment through conservation and sustainable practices Ethical Sourcing means ensuring that the products being sourced are created in safe facilities by workers who are treated well and paid fair wages to work legal hours. It also implies that the supplier is respecting the environment during the production and manufacture of the products. Ethical Standards are principles that when followed, promote values such as trust, good behavior, fairness, and/or kindness. Fast-Food are foods which can be cooked very quickly while the customers wait. 15 Fast-Food Chain is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service. Food served are typically caters to a "meat-sweet diet" and is offered from a limited menu, are cooked in bulk in advance and kept hot, are finished and packaged to order, and are usually available ready to take away, though seating may be provided Franchising is an agreement or license to sell a company's products exclusively in a particular area or to operate a business that carries that company's name Goodwill is an intangible asset which provides a competitive advantage, such as a strong brand, reputation, or high employee morale. Inalienable Right is a right according to natural law, a right that cannot be taken away, denied, or transferred. Internal Customer is an employee who receives goods or services produced elsewhere in an organization as inputs to his or her work. Nutritional Labeling is a label required on most packaged food detailing the contents of a food product for general educational purposes. Organizational Culture are the values and behaviors that contribute to the unique social and psychological environment of an organization. 16 Point of Sale System is a system mostly used in restaurants and hotels in which a computer replaces a cash register. Professional Ethics. are standards or code of conduct set by people in a specific profession. Restaurateur is a person who owns and manages a restaurant Rotisserie is a style of roasting where meat is cooked on a long solid rod used to hold food over a fire. Stakeholder is a person, group or organization that has interest or concern in an organization Stockholder is an individual or institution that legally owns a share of stock in a public or private corporation. 17 Chapter 2 REVIEW OF RELATED LITERATURE AND STUDIES This chapter presents the synthesis of related literature and studies both from local and foreign writers and researchers, which the researcher had read to strengthen the concepts and framework of the study. Literature This part deals with the findings made from books, articles, magazines, web publications that are related to the study. Local. Guasch ( 2008), presented the requirements for operation of eateries as per Republic Act 7160. He said that eatery should have the following minimum requirements to be complied with for the purpose of accreditation: 1. The locality including approaches shall be with the proper means of entry and exit and the façade shall be appropriately designed. 2. There shall be an adequate, secured parking space provided for free to customers. 3. An employee shall be available to usher the guests. A waiting lounge with a telephone shall also be provided. 4. The 18 dining room shall be adequate in size, with sufficient and well-maintained table and chairs. Flooring materials shall be kept clean at all times. The dining area shall have a pleasant atmosphere. 5. There shall be food of good quality and presentation available during normal meal hours and served with distinctions. They shall also meet minimum government and international standards. 6. There shall be a menu card which shall be presentable, clean and easy to read with the menu items listed, in logical sequence. Items shall be made available at all times on a best-effort basis. 7. No piece of tableware in use shall be chipped, cracked or grazed. They should be kept clean at all times. 8. Adequate number of well- trained, well-groomed, experienced, efficient and courteous staff shall be employed. 9. All comfort rooms shall be with good quality fixtures and fittings and provided with running water. The floor and the walls shall be covered with materials of good quality workmanship and shall be kept clean and sanitary at all times. 10. The kitchen, and cold storages shall be in good operating condition at all times and shall be well-equipped and hygienic. Equipment necessary to maintain a high standard of sanitation and hygiene shall be installed and used. 11. All sections of the Fast Food shall be maintained properly at all times. A periodic control program shall be maintained for all establishments. 12. Adequate fire- 19 fighting facilities shall be provided in accordance with the Fire Code of the Philippines. Based on an internet article from Wikipedia (2012), some of the largest fast food chains are beginning to incorporate healthier food in their menu, however, some people see these moves as commercial measure, rather than an appropriate reaction to ethical concerns about the world ecology and people's health. For example, McDonald's announced that in March 2006, the chain would include nutritional information on the packaging of all its products. These fast-food outlets have become popular with consumers for several reasons. One is that through economies of scale in purchasing and producing food, these companies can deliver food to consumers at a very low cost. In addition, although some people dislike fast food for its predictability, it can be reassuring to a hungry person in a hurry or far from home Fast food chains like McDonald's quickly gained a reputation for their cleanliness, fast service, and a child-friendly environment where travelling families could grab a quick meal, or seek a break from the routine of home cooking. Previously, people generally had a choice between standard restaurant where the quality of the food was questionable and service lacking, or expensive restaurants that were 20 expensive and impractical for families with children. The modern, streamlined convenience of the fast food restaurant provided a new alternative. Fast food restaurants rapidly became the eatery everyone could choose, with many featuring child-size value meals, play areas, and attractive marketing campaigns that are designed to appeal to younger customers. Parents could have a few minutes of peace while children played or amused themselves with the toys included in their Happy Meal. There is a long history of fast food advertising campaigns, many of which are directed at children. According to Wikipilipinas(2013), fine dining is good, but it is fast food that is most frequently visited due to affordability and accessibility. Nothing beats the convenience of having food fast in this very instant age. But fast does not mean low in quality, as proven by these top 10 fast food restaurants in the Philippines. The website also came out with the top Fast food chain in the Philippines as follows: Jollibee The same article also mentioned that the Fast food Jollibee started from a humble beginning, then it became the leading fast food chains in the Philippines. In 1975 it used to be an ice-cream parlor serving hot meals and sandwiches. With the coming of foreign franchise, it 21 experimented with hamburgers until it came up with a recipe geared for a definitely Filipino flavor. The company’s rapid growth is attributed to its creative, innovative and ethical marketing programs, its dedication to research to continuously come up with products that will appeal to the Filipino palate and consistent staff training to provide product knowledge and quality service. Chowking A subsidiary of Jollibee, the fast-food chain Chowking presents itself with its concept of quick-serve Chinese dishes, making it the pioneer in this field. Some of the foods being served are Noodles, dumplings and rice toppings were the dominant best sellers at Chowking since it started its operation. It also ventured into franchising before it became a whollyowned subsidiary of Jollibee Foods Corporation. Chowking reaped the rewards from the innovative product and marketing expertise of Jollibee. McDonald’s McDonald’s is a multinational franchise that enjoyed major success in the Philippines since 1981. It quickly became a huge success and McDonald’s branches began mushrooming over the major cities in the Philippines. Because of its continued, innovations and some new products 22 were introduced that suit more the Filipino taste as consumers are not very familiar with bland food that needs additional condiments and spices as you eat. To serve the working patron day and night, McDonald’s also started the 24/7 delivery service that are available in selected branches. Goldilocks Two sisters and a sister-in-law were the brains behind the very successful Goldilocks when they opened their first bakeshop in 1966 in Pasong Tamo, Makati City. It was named after a fairytale character as the bakery concept was geared towards children and birthday celebrations. The variety of cakes and pastries they now sell are in great demand and always a standard take-home gift here and abroad. Greenwich Considered as the largest pasta and pizza chain in the Philippines right now. It started as a pizza store selling pizza slices over the counter when it opened in 1971 at the Greenhills Shopping Center. They sell thincrust pizza, a major improvement from the other pizzas that were being sold during that time that almost resemble flat round bread with toppings because of the too-thick crust. Jollibee Foods Corporation acquired the majority shares of stocks in 1994 and bought out the remaining stocks in 23 2006 and formed a new company called Greenwich Pizza Corporation. New products, store renovations, new marketing and advertising strategies were put in place since then. Kentucky Fried Chicken The famous Colonel Sanders is behind the very successful chain of fast food restaurants, Kentucky Fried Chicken (KFC). The secret recipe for its chicken which consists of eleven herbs and spices is a very wellguarded secret and is under lock and key. The company claims that there is only one copy of the recipe, signed by Sanders and written in pencil on a sheet of notebook paper. KFC’s main focus is chicken but has been selling new products to a more complete meal, different chicken-based products as well as items and desserts to complement its main product. Shakey’s Shakey’s is another foreign brand that is enjoying huge success here in the Philippines since 1975. Pizza is the main product of Shakey’s and has several product innovations to keep their loyal customers satisfied. They also serve several ala carte meals geared for families and celebrations. French fried potato slices with seasoned breading is a favorite. 24 Pizza Hut Pizza Hut, another foreign franchise, has also gained foothold in Philippine soil attesting to the fact the Filipinos love to eat. It was brought here in 1984. Pizza Hut not only serves pizza. It also offers casual dining, serving a mix of American-Italian cuisine. With the company’s thrust to serve not only their customers but also their employees, Pizza Hut was recognized by Hewitt Associates and the Management Association of the Philippines as one of the 10 Best Employers in 2003. It also ranked fifth among the 40 companies in the Philippines vying for the award. Tokyo Tokyo Based on an internet article from Wikipilipinas (2013), Tokyo Tokyo is a Japanese fast food chain operating in the Philippines since 1985. They serve traditional Japanese dishes like sashimi, tonkatsu, tempura, sushi and yakisoba and continued to come up with new dishes and promotions. Their growth is largely due to franchising. For the Filipino customers who love to eat almost anything with rice, their free rice refill promotion is a huge success. 25 Kenny Rogers Roasters The internet article also added that Kenny Rogers opened its doors in the Philippines in 1995 and it immediately became one of the favorite places to dine, considering the number of roasted chicken houses that are already established here. From service only roasted chicken and side dishes, it has evolved into what it is today, a full-service restaurant. The unique taste of their chicken is said to come from their wood-fired rotisserie. According to Bagnoli (2013), the largest fast-food chain in the Philippines is Jollibee, operating a nationwide network of over 2,000 stores. It is a dominant market leader in the Philippines, it enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has also ventured on an aggressive international expansion plan in other countries like the USA, Hong Kong, Vietnam, Qatar, Brunie, and Saudi Arabia, firmly establishing itself as a growing international player. One of the reasons for its success is an ethical family-oriented approach to personnel management, making Jollibee one of the most admired employers in the region with an Employer of the Year Award from the Personnel Management Association of the Philippines, Best Employer in the Philippines Award from Hewitt Associated and a Top 20 Employer in 26 Asia citation from the Asian Wall Street Journal. Aside from promoting a family oriented work environment, the brand’s values also reflect on their marketing and advertising. Jollibee knows its target audience very well: the communication materials focus on the importance of family values, making Jollibee the number one family fast food chain in the Philippines and a growing international player. Additionally, Jollibee’s success can be attributed to a good customer relation management. Never losing sight of its goals, Jollibee has grown to be one of the most recognized and highly preferred brands in the Philippines. Now the market leader among fast food chains in the Philippines, claiming a market share that totals to more than half of the entire industry. According to the website McDonalds.com (2012), McDonald’s continues to serve close to 68 million in over 119 countries every day, making it the number one quick-service restaurant in the world. Today, McDonald’s has grown to become one of the country’s leading fast food chains with more than 400 restaurants nationwide and is now a multibillion peso company that continues to grow serving Filipinos all over the country. McDonalds as a business leader has several First. First to respond to the fast changing needs of the Filipino family. First choice when it 27 comes to food and dining experience. First mentioned as the ideal employer and socially responsible company. changing lifestyle of the Filipino family. First to respond to the First to serve the Filipino community by providing great-tasting food and the most relevant customer delight experience. Concern for the customer, employees, co-workers, business partners, community and company. It has Integrity, being upright in character and action, upholding the standards of one’s profession and position through honesty, responsibility, and trust. McDonald’s also gives back to the community through its charity of choice, Ronald McDonald House Charities. It carries out programs to support the needs for shelter, education and happiness of Filipino children. Crocombe (2012), said that people in Metro Manila are becoming more aware about the food they eat. Restaurateurs across the city become noticeably more conscious to healthy eating and marketing their menus with trendy catch phrases like ‘organic,’ ‘anti-oxidants’ and ‘probiotic’, dietary supplement containing beneficial live bacteria that can make a meal feel more enjoyable. Some are managing to combine taste, health and education. Still some are organizing local suppliers to provide top quality produce to their restaurants, and has joined forces with other local restaurateurs to ensure the farmers have a strong customer base by educating producers to protect consumers from misrepresentation. 28 Crocombe also mentioned about one restaurant owner who even set up a small farm. The organic produce they grew supplied the restaurant, and also began to be sourced by friends. As more friends inquired, the entrepreneur recognized the opportunity to expand into fresh produce. Her latest venture is a retail outlet espousing sustainable living, with organic produce sourced from small rural communities. She now has suppliers from all over the Philippines. Her entrepreneurial attitude has even inspired some of them to develop new initiatives. He also invested in a solar drier to save excess tomatoes from rotting. According to Velasquez ( 2000), ethics should be part of business. He points out that business activities, like any other human activities, cannot exist unless the people involved in the business and in its surrounding community adhere to some minimal standards of ethics. Since no business can exist entirely without ethics, the pursuit of business requires at least a minimal adherence to ethics on the part of those involved in business. Second, all business requires a stable society in which to carry on their business dealings. But the stability of any society requires that its members adhere to some minimal standards of ethics. Since business cannot survive without ethics, then, it is the best interests of business to promote ethical behavior both among its own members as well as within its larger society. 29 Velasquez added that another persuasive way to argue that ethics should be brought into business is by showing that ethical considerations are consistent with business pursuits, in particular with the pursuit of growth and stability. That ethics is consistent with the pursuit of profit can be shown by simply finding examples of companies where a history of good ethics has existed side by side with a history of profitable operation Foreign. Zwillich (2006), said that Kentucky Fried Chicken (KFC) fast food restaurants is one of the most well-known restaurant chains in the world. It is very keen about ethical standards both within and without the company as asserted by their company representatives. For instance the company is strict about its vendor engagements. Before a supplier can secure a contract with Kentucky Fried Chicken, they have to comply to similar ethical standards as KFC. This means that the supplier must not utilize under age labor to produce their commodities, they must pay fair wages and must also avoid placing harmful chemicals in their commodities. These concepts have governed the way KFC chooses other business partners too; they include contractors and manufacturers. By doing, this, the company is protecting human rights. 30 The company also looks out for the health and safety of their workers. Since KFC is a fast food chain, then its workers are very busy, the company's representatives affirm that they are always trying to protect their respective employees from detrimental hazards in the workplace. In line with this, KFC always ensures that their employees work for them voluntarily. This means that the company detests forced labor. They also believe in according their employees justice in case of any eventuality. Their disciplinary measures have always been fair and few employees complain about how their administration handles such unusual occurrences. Kentucky Fried Chicken employment practices are also ethical. This is due to the fact that the company does not discriminate against individuals on the basis of race, gender, disability or any other factor. The company's recruitment practices largely focus on the capabilities of the potential candidate rather than on their respective race, cultural backgrounds etc. In line with these practices, the company usually offers overtime for employees who decide to work beyond the normal working hours. Besides that, the company has created shift arrangements so that it can avoid overworking employees at any given time, it results to workers having ample time to rest to be more productive the next day. 31 KFC also takes the issue of wages high on its list. The company believes that workers should be paid according to their efforts. Consequently, there is an element of fairness when it comes to the way the company treats its employees. The company depicts this attitude in some of its restaurant outlets. The company has exceeded minimum wage by close to eight pounds per hour. Also, in the Canadian outlets, the company pays most of workers a favorable amount and has even allowed for unionization of employees. All the latter deeds go to show that KFC is committed to providing its employees with good working conditions. In an article written by Reynard (2013), entitled “Maxis Reassures Customers on Ethical Food Practices”, she said that much hype has been made about the discovery of various species of meat protein in products marked as beef, including traces of horse, donkey, water buffalo and goat meat. This has prompted meat suppliers and their clients to reassure customers that what’s on the menu really is in the dish. Maxi’s fast food chain has declared that no traces of unspecified meat can be found in the products that they serve. Maxi’s wishes to make it clear that it does not condone any form of unethical practice when it comes to the food that customers consume. Maxi’s feels that the meat contamination scare erodes the trust that consumers have given their favorite food service providers. Consumer 32 should not second guess the food that Maxi’s supplies to them as their trust is the most valuable asset in business. To ensure that their food is of the best quality, only the top suppliers are used, who undergo testing and inspection before food is supplied. They do not compromise on their brand promise of offering customers not only a meal, but a food experience. In this experience, they are truthful, ethical and transparent. Bilson (2012), said that McDonald’s is the world's largest chain of hamburger fast food restaurants. According to the McDonald’s Corporate Social Responsibility website, McDonald’s corporate social responsibility is about taking action, achieving results and always maintaining open lines of communication with its customers and other key stakeholders. Sustainable Supply Chain Strategy McDonald’s works with its suppliers to promote socially responsible practices in its supply chain as part of its supply chain strategy. This is part of its wider Framework for Corporate Social Responsibility. As described on its corporate social responsibility website, it has its own Code of Conduct for Suppliers which describes how McDonald’s expects its suppliers to treat their employees. It has also sought to extend social accountability throughout its supply chain as part 33 of its supply chain strategy. McDonald’s has succeeded in supporting suppliers who are phasing out sow gestation crates in their supply chain. McDonald’s embarked on a sustainability project to improve conditions for farm workers in the Florida tomato industry in 2007, which in turn promotes good environmental practices in its land-based agricultural supply chain and makes the farm a sustainable business. McDonald’s and its suppliers instituted industry-leading grower standards that improved working conditions in these farms and made the farm a sustainable business. Engaging the Community through Community-based Projects An example of this approach of McDonald’s and its contribution to the communities is seen in launch of its Flagship Farms Initiative. The program showcases seven “progressive farms” employing innovative farming practices and carries out research into how ethical farming practices can be incorporated into commercial farming systems. Another example is seen in the Sustainable Fisheries program which is in collaboration with the Sustainable Fisheries Partnership. This program defines sustainability standards that guide all of McDonalds’s purchases worldwide for wild-caught fish that goes into making those Fillet-o-Fish and make the relevant fishery a more sustainable business. 34 Irving ( 2012), said that selecting ethical food, drink or household products may sometimes be tough. But when you’re standing in front of a grocery shelf there is usually scope for comparing items and looking for organic or fair trade marks, vegetarian or sustainable fish logos, or free range or country-of-origin labeling. And if you’re trying to find healthy options for yourself or your children, fresh fruit and vegetables or mandatory nutritional labeling is at hand. But sitting in a restaurant, attempting to identify ethical or healthier options can be even harder. Many menus make unreal ethical claims, like ‘local’ or ‘natural,’ without giving real information, and staff are often poorly trained to deal with queries. One-third of the money spent on food and drink is outside the home, in a dining out market. So fast-food businesses should be challenged on their environmental and social sustainability and animal welfare involvement. Although consumer found that overall the levels of awareness of ethical issues in the fast-food industry were pitiful, some chains are showing signs of beginning to embrace the idea of sustainability. One fast-food, for example, has been serving free range eggs and organic milk for several years, and it promises seasonal vegetables, and children’s meals made from organic ingredients. In 2007 it received Compassion in World Farming’s ‘Good Egg’ award for serving eggs from uncaged hens. 35 Another fast-food, which mainly sells fish dishes but also offers meat and vegetarian meals. The entire chain has a very good Marine Conservation Society rating, which means that it has a sustainable fish buying policy; does not sell fish from “To avoid” list. It has also just switched all its restaurants to renewable electricity. It was recently bought by another buyer who promised to maintain its new subsidiary’s high ethical standards. Some of these have very pro-active stances towards ethical sourcing. Well-known examples are the Duke of Cambridge and Acorn House, a London restaurant which attracted much press attention after billing itself as “dedicated to healthy eating and environmental responsibility,” but there are many restaurants which have praiseworthy approaches to organic sourcing, local suppliers, vegetarian provision and fair trade alternatives. An NGO dedicated to reducing the impacts of the capital’s food consumption, work with individual restaurants and small businesses to promote energy efficiency, better sourcing and waste management. Jarman (2012), admits that it’s also important to make sure that restaurants stick by any claims they make, whether they’re chains or oneoff operations. Many fast food chains have responded to criticism by trying to outdo each other’s claims for reducing salt, sugar and fat. It was 36 also insisted that the restaurant industry can be more sustainable, and some restaurants and pub-eateries are exploring good practice in different aspects of their work. At the Bread & Roses pub, for example, staff in this notoriously low-paid and insecure sector are given proper contracts. These include sick and holiday pay and an hourly rate significantly above that of most pub staff. Bagnoli(2012), meanwhile said that in the fast-food Isinglass, they knew enough people who ate ethically at home and would want to dine somewhere that delivered what it said, and that they would pay the small necessary premium. By collecting vegetables, lamb etc direct from the farmer they could save money while paying more than the wholesalers’ price, a win-win situation which avoided the usual rank exploitation of primary producers. Isinglass and Bread & Roses are both small, independent outlets with the flexibility to experiment on how to implement their ethics. But with the resources available to large companies to research the issues, Charlotte Jarman sees no reason why such ethics shouldn’t extend throughout the sector. Erlich (2013), talked about Chipotle Mexican Grill. It has become one of the largest and fastest growing restaurant chains in the world. Chipotle’s main business plan focuses on using public relations to push corporate social responsibility programs through strategic communication 37 efforts and perceived brand personality. It markets itself as an environmentally friendly fast food chain. In fact, Chipotle uses ingredients that are sustainably grown and naturally raised. Furthermore, Chipotle serves more naturally raised meat than any other restaurant chain. Chipotle is ultimately ethically sound in terms of their business operations and sustainability practices. In the year 2000 Ells visited a farm, one of the oldest family cooperatives in the country. After the visit to the farm, Ells became very interested in serving more socially conscious ingredients. Chipotle began buying pork from pigs that were raised humanely without antibiotics or growth hormones. The chain describes their vision as “our commitment to finding the very best ingredients raised with respect for the animals, the environment, and the farmers”. Following this change, the sales of burritos doubled even though Chipotle raised the price of burritos by a dollar to account for the switch to higher priced pork. According to Ragas and Roberts, “Today Chipotle is the largest buyer of natural meats in the world and supports over 500 family farms. Ells was no doubt moving in the right direction since its opening in terms of ethical operations and green practices. Today Chipotle is far ahead of its competitors and still growing. O’ Brien(2012), asserted that for all the significant achievements companies are making as corporate citizens, the issue of their real impact 38 on society - and what as a result society may actually need back from them - raises the question of whether we are adequately defining what is expected by being socially responsible. The issue of marketing to children really brings that into focus, the issue of obesity a hot health care crisis, and McDonald’s handling of responsibility, as one of the world’s largest fast food chains. He also added that in one McDonald’s shareholder meeting, activists focused attention on McDonald’s marketing to children. In anticipation of McDonald’s shareholder meeting, Corporate Accountability International launched a campaign to fire Ronald McDonald, the clown mascot for the last nearly 50 years, and encourage headquarters to stop marketing to children by delivering petitions to individual restaurants. They also asked the chain to address directly the relationship of fast food to obesity. Beginning the campaign in a Portland, Oregon suburb, by May they had gathered 20,000 parents’ and community residents’ signatures on petitions which they delivered to the shareholder meeting. In Oregon, McDonald’s threw down the gauntlet, and affirmed Ronald’s job security, saying he is “the heart and soul of Ronald McDonald House Charities, which lends a helping hand to families in their time of need.” The response demonstrated how McDonald’s infuses the emotional and the marketing: 39 Ronald, the symbol to families dealing with sick and dying children, is also the brand, signifying the food and fun atmosphere to eat it in. The CEO Jim Skinner asserted the company’s right to advertise freely, to offer its menu and lifestyle selections, and leave to parent’s the right to chose what their children eat, saying it is up to personal responsibility. McDonald’s Corporate Social Responsibility information indicates the company serves “a balanced array of quality food products and provides the information to make individual choices.” Ingram ( 2013), said that all businesses can benefit from having a code of ethics in place. Codes of ethics can serve as guidelines for making decisions, whether at the business owner level or on the frontline. Food establishments, whether restaurants, grocery stores or wholesalers, face a distinct range of significant ethical challenges tied to the treatment of minimum-wage employees and the trade-off between food costs and quality. Employee Relations Employee relations is an area of ethics that food establishments too often neglect. With a number of exceptions, food restaurants generally pay minimum wage or only slightly higher for high-stress jobs. Scheduling issues are notorious in restaurant settings as well, with employees 40 working double shifts or working early-morning shifts immediately after late-night shifts. Food establishments should commit to breaking the trend of overworking and underpaying employees. Addressing this issue in a code of ethics can dramatically impact your reputation among potential employees. Food Safety Although most people do not realize it, patrons of food establishments place their lives in the establishments' hands. Improper storing and labeling of food items or selling slightly-expired food can be tempting from a financial perspective but can lead to serious injury or worse due to food poisoning, cross-contamination or allergic reactions. Food establishments should include firm commitments to food safety in their codes of ethics, always placing food safety above financial concerns. This includes going beyond the letter of the law to enforce the highest product quality standards. Supplier Standards Food establishments should be familiar with their suppliers. Again, financial considerations can tempt food establishment owners to purchase the most inexpensive ingredients with no questions asked. To show a 41 commitment to ethics, food establishments should perform due diligence before signing a contract with a new supplier. Codes of ethics should require food establishments to know where suppliers source their livestock, how livestock is raised and treated, which hormones or artificial additives are added to feed stocks and other ethical considerations related to the humane treatment of animals and equitable employment practices. Public Health Issues Modern food establishments are beginning to see that the law allows for serious breaches of ethics in the food industry; thus, many are beginning to take matters into their own hands to combat the United States' growing health epidemic. A code of ethics should include a commitment to sell only healthy products and never to use harmful ingredients. The establishments, for example, paid little or no attention to fat content and harmful additives, addicting a generation of consumers at the expense of their health — and sometimes their lives. Shaw ( 1999), said that modern business is intimately integrated with the rest of society. Business is not self-enclosed world, but business activities have profound ramifications throughout society. As a result, although society expects business to pursue its economic interests, business has other responsibilities as well. 42 He maintains that there is always a kind of social contract between business and society. This contract is only implicit, but it represents a tacit understanding within society about the proper goals and responsibilities of business. Today, however, society has concerns and interests other than rapid economic growth – in particular, a concern for the quality of life and for the preservation of the environment. Accordingly, the social contract is in the process of being modified. In particular, it will no longer be acceptable for corporations to manage their affairs solely in terms of the traditional internal costs of doing business, while thrusting external cost to the public. Businesses have grown more aware of the possible side effects of business activity, or what economists call externalities. Externalities are the unintended negative consequences that an economic transaction between two parties can have on some third party. Wade (2010), said that Fast-food owners assume liability as soon as a customer or noncustomer sets foot on their property. Awareness of the liability helps owners in eliminating, or at least minimizing problems that can cause injury and be attributed to owner negligence. Slips and falls, for example, both in the fast-food and outside are a major concern for owners. Maintaining the parking lot by filling in potholes and clearing snow and ice is a must. Another unfortunate 43 occurrence in fast-food is a customer’s becoming sick and blaming the sickness on the food. By allowing strict standards from receiving, preparation, storage, line preparation, the possibility of food-borne illness can be minimized The Americans with Disabilities Act (ADA) prohibits discrimination on the basis of disability in employment, state, and local government. The ADA will have an impact on the Fast-food building design. Some of the major concerns when building include the following: 1. parking requirements accessibility and 2. Ramps 3. Entranceways 4. bathroom 5. counters height and length requirements Operating a clean, safe, and sanitary restaurant is imperative to continued operation and long-term success. The Food and Drug administration (FDA) and state and local health departments and inspectors are not enemies of the food business- though some food service operators may treat them as such. The goal of these groups and the individuals that work for them is to protect the public from health risks in the environment including food-born illness. A food-born illness, if traced back to a fast-food, can be costly in the form of lawsuits, loss of business, and even bankruptcy Many of the guidelines by the FDA can be implemented by simply training personnel to understand the regulations and ramifications of not 44 following them. Other guidelines and regulations are somewhat more difficult to implement, and management may have to make an investment in resources to conform to these regulations All Fast-food owners are responsible for providing safe and secure workplace. This includes minimizing unsafe conditions through training and awareness and supplying equipment and supplies that help prevent unsafe conditions. In addition to worker’s compensation claims, lost labor hours in a tight labor market can add stress and unnecessary overtime expense. Theft and robbery are two major security issues that must be addressed. Loss prevention standards must be in place and enforced at all times. The safety of the staff and customers is critically important to a high morale among staff and safe feeling for customers. An unsafe environment can lower morale and affect sales if employees and customers do not feel safe. Wade also added that management must find ways to satisfy all individuals, including the employees. Owners and managers must enjoy being in the company of people, enjoy seeing people, talking to people, and most importantly listening to people. Excellent customer service is something everyone in the restaurant business hears every day. It seems that every customer-oriented company in the world says that excellent customer service is either part of their mission statement or vision. 45 Daft (2008), said that ethical responsibility includes behavior that are not necessarily codified into law and may not serve the corporation’s direct economic interests. To be ethical, organization decision makers should act with equity, fairness, and impartiality, respect the rights of individuals, and provide different treatment of individuals only when relevant to the organization’s goals and tasks. Unethical behavior occurs when decisions enable an individual or company to gain at the expense of other people or society as a whole He also added that as scandals rocked the corporate world, they prompted new demands from government legislators, stockholders, management experts, and the general public. The combination of a turbulent domestic environment, the globalization of business, and the increasing public scrutiny convinces many managers that paying attention to ethics and social responsibility is as much of a business issue as paying attention to costs, profits, and growth. Beyond maintaining high ethical standards, top managers at a growing number of companies recognize how to target their social responsibility efforts in ways that also benefit the business. After Hurricane Katrina, for example, rather than giving a general gift, employees of Papa John’s spent weeks in a pizza trailer handing out thousands of free six-inch pies, which benefited local residents and relief 46 workers while also promoting the company’s product. Starbucks build social responsibility into its business model by paying hourly employees above minimum wage, buying fair-trade coffee, and negotiating long-terms contracts with coffee growers who farm in environmentally friendly ways. McDonalds buys some of its energy from renewable sources, has stopped buying poultry treated with antibiotics, and offers incentives to suppliers that support sustainable practices. These efforts make good business sense at the same time they build the image of these companies as good corporate citizens. It was also stressed that ethical organizations should have code of ethics as tool. Code of Ethics is a formal statement of the company’s values concerning ethics and social issues. Studies. This part deals on the readings made by the researcher from theses and dissertations. Local. According to Lorenzana (2008), on her study of a Jollibee fast food outlet, she said that consumers are well-satisfied with the chains customer services. Results show that consumers assessed their services as very good. They are satisfied with the prompt services in providing the needs of customers. From accuracy of taking their orders to 47 accommodating every customers complaints were highly recognized by the respondents. Customers find Jollibee Food Chains as pleasant, worth revisiting, and worth recommending to others. The study also said that majority of the respondents do not encounter some problems in terms of parking services. However, with regards to inadequacy of seats and slow services of crew, there were number of consumers who experience such problems. This should be given appropriate attention in order to provide them the best services that will exceed customer’s expectations and achieve an overall continuing success Plantilla (2010), said that the problems encountered by non-food manufacturing firm in the management of business ethics programs are the following: 1. They do not have enough people 2. They do not have CSR management systems and processes 3. They do not have enough money to finance the CSR programs 4. CSR is not of real interest among employees 5. They do not have enough time 6. Top management does not support the program 7. CSR program do not have significant benefit to the company 8. Organizational culture does not suit to the values management and vice versa 9. Absence of ethical and legal grounds 48 He also added that companies with large number of employees and considered as matured in the industry were assessed to be better-off in the performance of the corporate social responsibility as well as those companies with large capitalization. Non-food manufacturing firms performed their social responsibility towards their stakeholders such as employees, society and environment to a moderate extent Bulahan(1996), in her study, said that the service rendered by Jollibee Cebu to its customers for Dine-in and Take-out as well as its express delivery are very good. She also said that the operations of Cebu City Jolibee fast food chains can stand improvements in the areas of: services, quality of the food, price, facilities, and location as to meet full customer satisfaction regarding the quality of food and service. He concluded that Jollibee operations has conformed with the expectations of its customers. Nevertheless, new improvements needed are not very difficult to implement if the management of Cebu city Jollibee fast food chains will take into consideration the importance of customer satisfaction for the success of its business operations. Domen ( 2005), said that the Zamboanga food service entrepreneurs could be described as particularly strong in persistence, commitment to work, goal setting, information seeking systematic planning 49 and monitoring, self-confidence, and highly-demanding in quality and efficiency of work. They could also be said to be moderately possessing risk-taking abilities, persuasion and networking. She said that business success indicators used were data on assets, sales volume, net income, and increase in manpower and age of the business. Sales volume as a business success indicator had significant correlations with professional background, personality traits on goal setting, and systematic planning and monitoring. The personal entrepreneurial characteristic which has a correlation with success indicators was demand for quality and efficiency. The value of these traits is recognized in managing a business and maintaining its profitability. Their hardworking traits, attempts to put quality in their businesses positively influenced their income Gadais(2004), said in her study that both Jollibee and McDonalds fast-food restaurants are highly patronized by the HRM students in Fairview, Quezon City. Most of the respondents eat at these fast foods restaurant twice a week and decided to eat there because of its accessibility, good service, affordable price. Moreover, students are satisfied when it comes to the level customer satisfaction in relation to customer- service provided by both the two food service establishments. The sanitation and cleanliness was first 50 when it comes to ranking the level of their satisfaction. Students are more comfortable to go in fast-food restaurants like Jollibee and McDonalds because they see that these stores are practicing standardized sanitation procedures that are very important to health . She also added that fast and efficient service, providing superior security and clean dining areas are the suggestions for improvement that will ensure the continuous patronage of the respondents to both fast food establishments McDonalds and Jollibee. They choose the two establishments not only for their popularity but also because of its customer service that adapts to every student needs. Based from a careful review of the findings and analysis, the researcher came out with the following recommendations that could serve as a guideline for the continuous improvement of the food service. They must continue to maintain fast and efficient service and to comply with their standards to protect their image because as we all know Jollibee and McDonalds had already established its name in the food service industry. The service crew must continue to be always alert and attentive to the needs and wants of their customers. They must be consistent on providing friendly, courteous and helpful service to its customers 51 According to Casuay ( 2005), Social responsibility are composed of the following indicators: professionalism, honesty, and commitments. All were rated according to the honest perception of the participating respondents. Whereas, business ethics are comprised of the following indicators: values, rights, duties, and relationship. Respondents of the study comprised of the employees in selected franchising touching the lives of the employees and the selected franchising top management who in their own humble job delivered all the raw materials to be processed and served to the general public/society. The customers are considered as the backbone of any business establishments. For as long as there are customers and households, the producers and service delivery companies will always be there to serve them with dedication and commitment Respondents believed that they have the social responsibility to the general public/society as a member of selected franchising companies. The study shows that the employees, customers, and suppliers have their respective contributions to the society where they also is a part. They served with professionalism, honesty and commitment 52 Based on the findings of the study, it is recommended that franchisers and franchisees should maintain good and harmonious relationship to ensure effective business operations, for the employees to continuously exert their fullest effort in the discharge of their respective duties and responsibilities. According to the study conducted by Daniel (2006), the optimal end in bringing together its purpose as a productive economic entity and a pillar in responsible corporate handling has been realized by maintaining the quality of its products and its global competitiveness and providing the various stakeholders with development programs and social services. Since the existence of Stanfilco in the realm of production, it had maintained its excellence both in the local and of global market. Through its continued upholding of the standards in business operations under the ISO, it manages to maintain the quality of its products while staying at pace with the fast charging demands of its clients. The company has effectively maximized the full potentials of its manpower by keeping them involved in the developments within the business organization. Through its circular management organization, Stanfilco has innovatively created an organizational system that best caters the modern needs of corporate management. 53 Stanfilco has successfully complied with the requirements of the labor code of the Philippines in dealing with the basic and civic rights of its employees. The company has carefully implemented development programs in various forms that motivated its internal stakeholders especially the employees to perform with efficiency, loyalty and dedication. It is therefore concluded that Stanfilco’s corporate strategies were formulated in consonance with the concept of corporate social responsibility and hence it helps the company in terms of their financial stability because having business ethics attracts buyers because the company does not only focus on the gain that they are going to earn but they are also concern about their internal and external stakeholders and the environment as a whole. Foreign. According to Hartman ( 2008), the giant food chain McDonalds published its first social-responsibility report summarizing its efforts in four categories: community, environment, people, and marketplace. The efforts that went into that report were rewarded in some courts of public opinion. placed 14th among the environmental performance In surveys of media and NGOs, McDonalds world’s most respected companies for 54 She also added that McDonalds has become an industry leader in creating policies to ensure the humane treatment of animals. As part of this effort, McDonalds has adopted a set of guiding principles, including the following. McDonalds commitment to animal welfare is global and guided by the Following principles. These principles apply to all the countries in which McDonald’s does business. Safety. First and foremost, McDonald’s will provide its customers with safe food products. Food safety is McDonalds number one priority. Quality. McDonald’s believes treating animals with care and respect is an integral part of an overall quality assurance programs that makes good business sense Animal Treatment. McDonald’s supports that animals should be free from cruelty, abuse, and neglect while embracing the proper treatment of animals and addressing animal welfare issues. In an internet study published by the website Ivythesis (2013). it said that corporations must adopt policies that are in conformity to the norms and goals of society. Businesses have a moral obligation to use their resources for the common good as well as obligations to groups of stakeholders. Starbucks is one of those companies that are successful and profitable and at the same time takes business ethics seriously. The company won an ethics awards under the category overall leadership 55 award. Sourcing of raw materials is one of the issues if a company is operating globally. For Starbucks Canada, ethical sourcing means buying coffees that are of highest quality and are responsibly grown. The sources must be responsible and be the best sources possible. Ethical sourcing also means that Starbucks would serve ethically traded coffee. Ethical sourcing would create a better future for farmers/suppliers and a more stable climate. Environmentalists consistently applaud the globalization of environmental stewardship, even when this globalization erodes national sovereignty. For Starbucks Canada, environmental stewardship means leading the industry into thinking about minimizing the impact of their production or operations to the environment, discussing the issue of climate change, and inspiring other industries to do the same. The company has used its leadership skills to influence others the need to minimize the impact of their operations to the environment and discuss the issue of climate change. Starbucks environmental stewardship influences other industries to imitate what they did. For Starbucks, having community involvement means that the firm will take part in the activities of the community. For them, their community includes the places where their stores are located and the places where the coffee is grown. Starbucks volunteered huge hours of service in their community 56 The CSR strategies of Starbucks Canada don’t break away any law and it does not try to ignore the rule of laws. It’s strategies of ethical sourcing, environmental stewardships and community involvement are still within the boundaries and follow rules of the environment. Such strategies helped the firm gain further growth and it endeared them to their local and foreign environment. In the study conducted by Baker (2010), sanitation was the most important factor and therefore constituted a major area of concern and concentration for restaurant customers and was found to be most important to women. Observation of the server’s hair being groomed, clean, and restrained are potential indicators of an establishments overall sanitation and propensity for foreign objects in food, such as hair. In addition, a customer contact employee’s hands and clothes are also signs of the level of cleanliness and sanitation for a restaurant. Results of this study continue to demonstrate the high level of importance customers place on sanitary, clean, safe, and proper food handling procedures. She said that accommodation was viewed as the second most important factor, especially for those under the age of 35 years old. Those in the United States have been shown to exhibit a very strong desire and 57 acclamation toward individualism and self-interest. It can also be argued that higher levels of individualism and self-interest are increasingly displayed by members of Generation X. Such behavior relate to providing for customers specific needs and desires. Restaurants should continue to cater to individual customer needs perform the necessary accommodations. Restaurants should strive to be as accommodating as possible to customer needs and requests. Furthermore, it has been suggested that service customization may be critical to gaining competitive advantage. Privacy was rated as the third most important dimension among both groups. The dimension of privacy can involve a customer contact employee managing the balance of being attentive towards the customer while not bothering or interrupting the dining party. The importance of privacy may be of more importance to those groups who want a more unobtrusive, more seamless service style. Reich (2002), stressed that social responsibility can play a beneficial role in influencing consumer's attitudes toward the store It also showed that the consumer's inclination to reward brand social responsibility image moderates the relationship between brand social responsibility image and brand loyalty, and between brand social 58 responsibility image and the constructs of product quality and service quality. The fact that a positive perception of a brand's social responsibility image has a positive influence on the consumer's perception of product quality, service quality, and brand loyalty has been shown in this study. Subsequently, knowledge of certain groups that may be inclined to reward brand social responsibility image may allow practitioners to increase customer's perceptions of service quality by targeting these groups with information about the firm's SR efforts. Conversely, the brand must be aware that low perceptions of social responsibility will result in very low perceptions of product quality and brand loyalty for consumers who are inclined to reward brand social responsibility image. Yoo (2012), pointed out that restaurant cleanliness is considered one of the most significant conditions when customers evaluate overall restaurant quality or decide their levels of satisfaction. However, there have been few studies of perceptions of restaurant cleanliness in customers’ eyes. Previous studies were found to use inconsistent concepts of restaurant cleanliness when evaluating restaurant cleanliness. For example, some measurement scale of restaurant quality or customer satisfaction includes only items related to a restaurant’s interior appearance to measure the restaurant cleanliness. Some researchers 59 have also included items related to server’s appearance. In other studies, overall images of a restaurant were used to evaluate its cleanliness. The study attempts to investigate the customers’ perceptions of restaurant cleanliness. Understanding what customers consider when they evaluate a restaurant’s cleanliness can be beneficial for hospitality managers who can use the information to increase their restaurant’s quality and to satisfy their customers. The results of this study indicated that the items of restroom personal hygiene, restroom appearance and server’ behavior all have a positive relationship with customers’ restaurant quality evaluations. The server’s behavior, restroom appearance and signage were found to be the most important dimensions. Westerners weighed the restroom personal hygiene as more important than did Asian respondents. Asian groups were found to have higher expectations for overall restaurant cleanliness dimensions than Western groups. 60 CONCEPTUAL FRAMEWORK According to Hartman (2008), the role of ethics in business operation can be understood by the fact that ethical Fast-food chains tend to be more successful in making profits than the others. The reason for this is that customers of Fast-food businesses which follow ethics based on perception of the customers themselves will become loyal and satisfied with the services and product offerings of such businesses. To achieve this, fast-food chains should consider the following: Consumer welfare, Quality of the food, Fairness in pricing,Professionalism,Honesty and fair trade practices,Community involvement, Following Rules and regulations, Health and safety, Employee welfare, and Environmental protection. If the business will have a positive approach about these ethical consideration , they will surely satisfy its stakeholders such as customers. When customers are satisfied, they will become loyal to the company and come back again for re-purchasing. This will surely increase the profits of the organization, and ultimately will give more success to them. Thus, the importance of business ethics is that it creates loyalty in customers and it makes them successful.. In a Fast-food organization, people working at the junior levels often emulate the ones working at the top. If the management or seniors 61 of the business follow ethical business practices, they do not bribe to get their way or they do not cheat the customers, suppliers, and the public., the employees will follow suit. The employees too will refrain from using the business resources for personal benefits. This will result in better and efficient utilization of the business resources. A Fast-food business which is well-known for its ethical practices, creates a goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the businesses which they can trust. Shareholders too, remain satisfied with the practices of an ethical businesses. Thus, ethics creates goodwill and builds long-term relationships, and long term success for the business. Also, an ethical business puts greater value on its employees and thus, employees remain loyal to such an organization too. 62 INPUT -Description of the Respondents. -Business Ethics Practices of the Fast Food chains PROCESS Utilization of the following Data gathering Instruments: Designed a Guide to Improve the Business -Questionnaire -Effectiveness of the Business Ethics Practices of the Fast food Chains OUTPUT Ethics Practices of the Fast- -Interview -Problems Encountered With regard to Business Ethics and suggested solutions Figure 1 Paradigm of the Study Food Chains 63 The Figure illustrates the paradigm of the study using the INPUTPROCESS-OUTPUT scheme. The first box is labeled INPUT, consisted of the description of the Respondents; Existing Business Ethics Practices of the Fast Food chains as to: Customer and Employee Welfare, Quality of food, Professionalism, Compliance with Rules and Regulations on Health and Safety, and Community Involvement and Environmental Protection; Effectiveness of the aforementioned Business Ethics; and Problems Encountered with Regard to Business Ethics and Suggested Solutions. The second box is labeled PROCESS, consisted of the utilization of data gathering Instrument like Questionnaire and Interview. The Third box is the OUTPUT or the Outcome which designed a guide to Improve the Business Ethics Practices of the Fast-Food Chains. 64 RELEVANCE OF THE REVIEWED LITERATURE AND STUDIES TO THE PRESENT STUDY All the related materials that was read by the researcher are related to the present study he conducted. He perceived that the foreign literature from books, journals, and Internet articles presented the role of Business ethics in the Fast-food chains and Restaurants in different parts of the world. For example, in the article about McDonalds in the United States, it is considered as the world's largest chain of hamburger fast food restaurants. According to the said article, its corporate social responsibility is about taking action, achieving results and always maintaining open lines of communication with its customers and other key stakeholders. It works with its suppliers to promote socially responsible practices in its supply chain as part of its supply chain strategy. As described on its corporate social responsibility website, it has its own Code of Conduct for Suppliers which describes how McDonald’s expects its suppliers to treat their employees. Likewise, the present study also dealt with how the McDonalds branch in North Fairview Quezon City practiced its Corporate Social Responsibility. The study was able to present that McDonalds and all the Fast-food chain involved have open line with its stakeholders when it 65 comes to suggestions for improvements. The Fast-food chain in North Fairview also resorted to ethical sourcing, meaning it also took the responsibility in making sure that all the raw materials used in its production are properly obtained from the genuine suppliers. This of course is being done to achieve satisfaction from the customers, and ultimately it will be translated to long-term success. Another point of comparison is that McDonald’s branches in the United States donate a portion of their profits to corporate philanthropy as part of its efforts to be more socially responsible. McDonald’s makes charitable contributions through the Ronald McDonald House Charities which aims to create, find and support programs that directly improve the health and well-being of children. It attempts to ensure that children in vulnerable communities can receive state-of-the-art medical and dental treatment to improve their health and strengthen the whole family. This health care on wheels program attempts to change children’s lives and improve communities along the way. Similarly, the branches in North Fairview Quezon City also embrace a Philanthropic philosophy. They also support the improvement of lives of all people in the community where they belong. They build 66 housing units for the poor because they believe that it should be involved in charitable works to become successful in business. The researcher felt that all the reviewed local and foreign literature and studies are very vital in this particular study to help him have a background of information by comparing its relationships to the present study. 67 Chapter 3 METHODS OF RESEARCH This chapter presents the research procedures utilized in this study. This included sources of data, data gathering procedures, instruments and statistical technique used in analyzing and interpreting the data. RESEARCH DESIGN The researcher employed the Descriptive Method of research in gathering the needed data because this method of research is a factfinding study with adequate and accurate interpretation of the findings. According to Zulueta and Costales (2010), its purpose is to know “what exists” or what is about a certain phenomena. Since this study aims to know the role of business ethics in the success of the food chain eateries in North Fairview, Quezon City towards a guide, the descriptive method of research is the most appropriate method to use in the hope of offering recommendations based on the findings. 68 RESPONDENTS The respondents of this study are 150 customers of the Three Fast food chains, 50 customers from each food chain. The researcher believed that the respondents came up with reliable and valuable data needed in this study. SAMPLING TECHNIQUE The researcher made use of Purposive Sampling to choose 50 respondents from each sampled Fast Food or a total of 150 respondents to answer the questionnaire. According to Crossman (2013), “purposive sampling, also commonly called a judgmental sample, is one that is selected based on the knowledge of a population and the purpose of the study. The subjects are selected because of some characteristic”. INSTRUMENTS USED The researcher was able to gather the needed data by using the following instruments: Questionnaire The instrument used by the researcher to collect data is the survey questionnaire. It aimed on knowing the customer’s perception if how 69 effective are the existing business ethics practices of the fast food chain eateries in the following areas: Customer and Employee Welfare, Quality of Food, Professionalism, Compliance with Rules and Regulations on Health and safety, and Community and Environmental Involvement. The data collected from the respondents were analyzed, organized, and interpreted. Interview This was personally, yet informally done by the researcher to complement the answer on the questionnaire and to give light on some matters not clearly responded to by the interviewees. The interview was done as a systematic way of talking and listening to the respondents and as another way to collect data from them through conversations. The researcher used open questions, and data is collected from the interviewee. The researcher needs to remember the interviewer’s views about the topic of business ethics as they are of utmost importance. The respondents were also considered as the primary data for the study because talking to them is a way to collect data as well as to gain knowledge from them, specifically on their perceptions about the role of business ethics in the success of a business. 70 The researcher got the respondents involved and talked about their views. In addition, the interviewees were able to discuss their perception and interpretation with regards to a given ethical situation in the daily operation of the fast-food chain. CONSTRUCTION OF THE INSTRUMENT To formulate the concept and framework of the study and to determine the variables and indicators to be used, the researcher read the literature and studies related to the study. He prepared the initial draft of the questionnaire based on this readings. He presented the draft to his adviser, who in turn made the necessary corrections, exclusions, and additions. The researcher considered all these suggestions when he revised the draft of the questionnaire. VALIDATION OF THE INSTRUMENT The draft of the questionnaire was presented to his adviser, who in turn suggested some changes. The questionnaire was validated by presenting it to 15 customers coming from each Fast Food chain who were not part of the sampled respondents of the study. 71 ADMINISTRATION AND RETRIEVAL OF THE INSTRUMENT The researcher sought the approval of the Store Managers of the fast-food chains to float the questionnaires. Having found the questionnaires valid and reliable, copies were distributed to the respondents. With the help of some of his colleagues, he personally administered the distribution to 150 respondent customers who were purposively selected. After giving the respondents ample time to answer, and having 100% retrieval, the data gathered from the survey were analyzed, organized, and interpreted. STATISTICAL TREATMENT OF DATA The data that were yielded by the questionnaire were tallied, tabulated, and subjected to statistical treatment in order to ensure validity, reliability, and interpretation. Frequency and Percentage Distribution This was used to determine the profile of the respondents, the business ethics practices of the fast-food chains, the ethical problems 72 encountered, as well as the suggestions for improvements being offered by the respondents. Formula: P = f N x 100 Where: P = percentage f = frequency N = number of respondents Weighted Mean To assess the roles of business ethics practices and to describe its effectiveness, the weighted mean was applied. The response of the respondents were categorized into five and were given corresponding weight. The weights were multiplied by the number of replies in each category and were added and then divided from the sum of the product Formula: WX = f N x 100 73 Where: f = frequency N = number of respondents To qualify the responses on the rating scale, the five-point Likert scale method of measuring attitudes were used. Each statement has Five responses, which are classified under the degree of difficulty from “5” which means Strongly Agree down to “1” which means Strongly Disagree. The respondents reacted to every perception item by checking one out of five possible answer or responses. Thus, the score was the sum of the weight of the responses checked. The equivalent point assigned to each item indicated the extent of existence of the conditions as perceived by the respondents was determined by estimating weighted average which becomes the verbal description. Weighted Mean Interpretation 4.50 - 5.00 - 5 Very Highly Effective (VHE) 3.50 - 4.49 - 4 Highly Effective (HE) 2.50 - 3.49 - 3 Moderately Effective (ME) 1.50 - 2.49 - 2 Ineffective (I) 1.00 - 1.49 - 1 Very Ineffective (VI) 74 Chapter 4 PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA This chapter presents the gathered data in tabular forms; each table is given its corresponding interpretation and analysis. 1. On the description of the respondents. Table 1 Respondents as to Age Age Level F % Rank 25 and below 26-30 31-35 36-40 41-45 46-50 51 and above Total 57 24 16 11 18 8 16 150 38 16 11 7 12 5 11 100 1 2 4.5 6 3 7 4.5 75 This table presents the frequency and percentage distribution of the respondents description as to age level. As noted on the table, Rank 1 are those respondents at the “25 and below” bracket with 57 respondents equivalent to 38 percent. In Rank 2 are those in the “26-30” bracket with 24 respondents which is equivalent to 16 percent. Completing the ranking in Rank 3 are those in the “41-45” age bracket with 18 respondents which is equivalent to 12 percent. This shows that majority of the customers come from the younger generation. The fast food can still market more food high in fat since this age bracket is not yet that concerned when it comes to their health. It also has a share of the adult customers, those aged 40 and above with a combined share of 28%. Table 2 Respondents as to Gender Gender f % Male 72 48 Female 78 52 150 100 Total 76 The table above shows the frequency and percentage distribution of the respondents description as to gender. As noted on the table, the “male” garnered 72 respondents equivalent to 48 percent, while the “female” got 78 respondents which is equivalent to 52 percent. This reveals that eventhough there are more female customers patronizing the Fast Foods, the difference is not that big. There is still almost the same number of male and female respondents since the female group is greater only by 6 compared to their male counterpart. Table 3 Respondents as to Civil Status Civil Status f % Rank Single 88 59 1 Married 53 35 2 Separated 6 4 3 Others 3 2 4 150 100 Total 77 Table 3 presents the frequency and percentage distribution of the respondents description as to civil status. As noted on the table, Rank 1 are those respondents at the “single” category with 88 respondents equivalent to 59 percent. In Rank 2 are those in the “married” category with 53 respondents which is equivalent to 35 percent. In Rank 3 are those in the “separated” category with only 6 respondents which is equivalent to 4 percent. It can be viewed from the table that more unmarried persons are staying out in malls and are willing to spend on fast food than their married counterpart, who maybe want to spend their money more economically. Table 4 Respondents as to Educational Attainment Educational Attainment f % Rank Vocational-Technical Graduate 24 16 3 College Units 61 41 1 College Graduates 56 38 2 Master’s Units 5 3 4 Master’s Degree Holder 2 1 5.5 Others 2 1 5.5 150 100 Total 78 The table above presents the frequency and percentage distribution of the respondents description as to educational attainment. As noted on the table, “college units” category is Rank 1 with 61 respondents out of 150, this is equivalent to 41 percent of the total. Rank 2 are those at the “college graduates” category with 56 respondents equivalent to 38 percent. Completing the ranking are those in “technical vocational” category with 24 respondents equivalent to 16 percent. It can be concluded that there is a greater number of students with college units than those college graduates. In general, they are deemed still studying, they have more time to be spent on fast food. On the other hand, technical-vocational graduates are not far behind, they are also willing to stay and hang out on these fast foods. 79 2. On the existing business ethics practices that are observed by the Fast Food chains Table 5 Business Ethics Practices of the Fast Food Chain As to Customer and Employee Welfare Indicators *f % Rank 106 71 1 b. provide the right food suggestions to customers 72 48 4 c. affordable pricing 97 65 2 d. convenient and comfortable store setting 84 56 3 e. clean restrooms 69 46 6 f. good employer-employee relationship 70 47 5 a. good customer service * multiple response The table above presents the frequency and percentage distribution of the business ethics practices of the Fast Foods as to customer and employee welfare. As noted on the table, “good customer service” is Rank 1 with total respondents of 106 or 71 percent. “Affordable pricing” is Rank 2 with 97 respondents or 65 percent. 80 Completing the ranking at Rank 3 is “convenient and comfortable store setting” which got 84 respondents or 56 percent. Since there is close to 50 percent or more than 50 percent respondents in almost all the categories given, it only shows that the Fast Foods have ethical business practices towards the welfare of its customers and employees. It should also take notice of “Clean restroom” and “good employer-employee relationship since both of these are the least chosen by the respondents. Table 6 Business Ethics Practices of the Fast Food Chains As to Quality of Food Indicators *f % Rank a. healthy ingredients and nutritional information 93 62 2 b. safe preparation methods 89 59 3 c. fresh ingredients 80 53 4 d. presence of food expiry date 46 31 6 e. food items are tasty and served hot f. proper labeling and packaging 94 63 1 65 43 5 * multiple response 81 The table above presents the frequency and percentage distribution of the business ethics practices of the Fast Food chains as to quality of food. The table shows that “food items are tasty and served hot” is Rank 1 with total respondents of 94 or 63 percent. “Healthy ingredients and nutritional information” is Rank 2 with 93 respondents or 62 percent. Completing the ranking at Rank 3 is “safe preparation method” chosen by 89 respondents or 59 percent. Since half of the business ethics practices mentioned are being done according to more than 50 percent of the respondents, it only shows that the Fast food chains are preparing and providing quality food to its customers, though a very low 31 percent are saying that the fast food is giving information about the expiration time of their products. 82 Table 7 Business Ethics Practices of the Fast Food Chains As to Professionalism Indicators *f % Rank a. honest in action 78 52 5 b. reliable, trustworthy, and caring 81 54 3 c. respectful and is aware of customer’s feelings d. display professional behavior 99 66 1 79 53 4 e. practices appropriate dress code f. skillful communication * multiple response 72 48 6 83 55 2 Table 7 above presents the frequency and percentage distribution of the business ethics practices of the Fast Food Chains as to professionalism. As noted on the table, Rank 1 is “respectful and is aware of customer’s feelings” with total respondents of 99 or 66 percent. In Rank 2 is “skillful communication”, with 83 respondents or equivalent to 55 percent. Rank 3 is “reliable, trustworthy, and caring” with 81 respondents or 54 percent. Since majority of the business ethics practices mentioned were chosen by more than half of the respondents, it only shows that the Fast 83 Food chains show professionalism in dealing with its customers in doing their duties and responsibilities. Table 8 Business Ethics Practices As to Compliance with Rules and Regulations on Health and Safety Indicators *f % Rank a. employees of legal working age 88 59 2 b. environmentally-friendly packaging 81 54 4 c. adherence to food safety standard 75 50 5 d. safe cooking and practices procedures 87 58 3 e. sanitized and safe store operation 94 63 1 f. medically qualified personnel 67 45 6 The table above presents the frequency and percentage distribution of the business ethics practices of the Fast Food chains as to compliance with Rules and Regulations on Health and Safety. As noted on the table, Rank 1 is “sanitized and safe store operation” with total respondents of 94 or equivalent to a high 63 percent. In Rank 2 is “employees of legal working age” with 88 respondents or equivalent to 59 percent. Completing the top 3 ranking is “safe cooking and practices procedures” with 87 respondents or 58 percent. 84 Since only one business practices was not chosen by more than half number of respondents, it can be observed that the fast Food chains aret very strict when it comes to compliance with rules and regulations on health and safety of both the customers and employees. Table 9 Business Ethics Practices As to Community and Environmental Involvement *f % Rank 120 80 1 b. proper recycling practices 73 49 3 c. charity involvement 54 36 4 d. community feeding program 43 29 5 105 70 2 34 23 6 Indicators a. proper waste disposal e. keep the environment safe and clean f. sports involvement in the community * multiple response Table 9 above presents the frequency and percentage distribution of the business ethics practices of the Fast Food Chains as to community and environmental involvement. As noted on the table, Rank 1 is “proper waste disposal” with a big number of respondents at 120 or equivalent to 85 a high 80 percent. Following at Rank 2 is “keep the environment safe and clean” with 105 respondents or equivalent to 70 percent. Completing the top 3 ranking is “proper recycling practices” with 73 respondents or 49 percent. It can be said that the Fast Food Chains are not too keen when it comes to community involvement since most of the choices pertaining to community were not chosen by the majority of the respondents, whereas those that pertain to environment got more than half of the number of respondents. Thus, the fast food should be involved more visibly on community development like mass-feeding, charity works and sports programs. 86 3. On the effectiveness of the business ethics practices of the Fast Food chains Table 10 Effectiveness of the Business Ethics Practices of the Fast Food Chains ` WX I Rank 1. Customer and Employee Welfare 4.04 E 3 2. Quality of Food 3.91 E 4 3. Professionalism 4.06 E 2 4. Compliance with Rules and Regulations on Health and Safety 4.14 E 1 5. Community and Environmental Protection 3.90 E 5 4.01 E Average Weighted Mean This table presents the weighted mean and the corresponding interpretation on the effectiveness of the business ethics practices of the Fast Food Chains. As noted on the table, Rank 1 is “compliance with rules and regulations on health and safety” with WX of 4.14 or Effective. Rank 87 2 is “professionalism“, which has WX of 4.06 or Effective. Rank 3 is “customer and employee welfare” which has WX of 4.04 or Effective. Since all of the business practices done by the Fast Foods have an average of 4.01, it only means that business ethics are used effectively towards the success of the fast food chain, though it should involve itself more in the community sports, charity, and feeding activities since this is the area wherein it is least effective with WX of only 3.90. 88 4. On the problems encountered by the customer and suggestions on how to resolve the problems. Table 11 Problems Encountered by the Customers of the Fast Food Chains Indicators *f a. employees do not care about the customers b. refuse to acknowledge errors 49 33 6 45 30 8 c. respond to complaints slowly or not at all 63 42 4 d. incomplete and slow serving of food items 78 52 3 e. poor response to information request 53 35 5 f. poor communication skills 40 27 9 g. employees are not knowledgeable about the products h. long customer line i. absence of toddler seats 29 19 10 105 48 70 32 1 7 81 54 2 j. small dining area * multiple response % Rank 89 This table presents the frequency and percentage distribution of the problems encountered by the customers of the Fast Food chains. As noted on the table, Rank 1 is “long customer line” with 105 respondents or equivalent to 70 percent. Rank 2 is “small dining area” with 81 respondents or equivalent to 54 percent. “Incomplete and slow serving of food items” is at Rank 3 with 78 respondents each or equivalent to 52 percent. The table only reveals that there are problems that need to be addressed immediately especially on “long customer line” with a big 70 percent of the total respondents . 90 Table 12 Suggestions on How to Resolve the Problems at the Fast Food chains Indicators a. respond to complaints within minutes *f % Rank 115 77 1 b. train the staff about the products they are selling c. train the staff in customer service skills 78 52 6 84 56 5 d. rotate staff to increase their knowledge of other areas e. train staff in communication skills 86 57 4 69 46 7 f. adequate product information like leaflets for reference g. more counter persons assigned 59 39 9 93 62 3 h. honest effort to “trim the fat” off the menus i. bigger dining areas for the convenience of customers j. more amenities for children 49 33 10 105 70 2 63 42 8 * multiple response This table presents the frequency and percentage distribution of the suggestions on how to resolve the problems of the Fast Food Chains. As noted on the table, Rank 1 is “respond to complaints within minutes” with 115 respondents or equivalent to 77 percent. Rank 2 is “bigger dining areas for the convenience of customers” with 105 91 respondents or equivalent to 70 percent. “More counter persons assigned” is Rank 3 with 93 respondents each or equivalent to 62 percent. The table only reveals that there are still solutions suggested to solve the problems of the Fast Food chains on business ethics practices. 92 5. On the utilization of the findings in designing a guide to enhance the business ethics practices of the Fast food chains towards better service. Every time a new Fast food chain or restaurant business is established anywhere, whether a single-own enterprise, a partnership, or a corporation, the owner or owners must adopt a business ethics. It must include the beliefs and values of the organization. Those beliefs and values should become internalized by all employees and used regularly in all business practices, no matter what type of business it is. Today’s consumers give much pay a great deal of attention to ethical practices and proper behavior of businesses and their owners. Promises must be fulfilled and the price and quality of products and services must be equal to what is advertised, or another business will step in to deliver. Business ethics that are both defined and acted upon is part of the business culture of every successful business, and must become the goal of every business owner. Growing a successful business through the use of sound ethical principles will reap not only the benefits of growth and prosperity, but also the satisfaction on their part Unfortunately, there are ethical problems in the Fast food that are ignored by the owners. They are spending much money on marketing 93 campaigns to be patronized and make large profits than ever before. There are many ethical concerns in the fast food industry that if not taken care of, it will decrease the amount of customers these businesses cater to. The study, therefore, came up with a guide to serve as basis in enhancing policies with regards to business ethics practices. The guide below may assist the Fast food chains. a. Review existing policies on business ethics practices b. Respond more effectively on the welfare of employees and customers by providing excellent service, convenient store setting and good employer-employee relationship c. Assure food quality by providing healthy ingredients, nutritional information, safe preparation method and proper packaging d. awareness Display professional behavior by being reliable, trustworthy, of customer’s feelings, appropriate dress code, and skillful communication e. Comply with environmentally-friendly standards, sanitized rules packaging, and medically-qualified personnel safe and regulations adherence store to operation, like providing food safety and hiring 94 f. Be involved in community and environmental development such as proper waste disposal practices, charity and sports involvement, and keeping the environment safe and clean. 95 Chapter 5 SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION This chapter presents the summary of the study. It includes the findings gathered from the data, the conclusions drawn from these findings and recommendations offered in the light of the findings and conclusions. It presents the answers to the questions posted in the statement of the problem, which is hereby restrained. STATEMENT OF THE PROBLEM The study aimed to determine the role of business ethics in the success of fast food chains in North Fairview, Quezon City: towards a guide to enhance management of businesses during the Calendar Year 2013-2014. Specifically, it sought answers to the following questions: 1. How may the respondents be described in terms of the following 1.1 age, 1.2 gender, 1.3 civil status, and 96 1.4 educational attainment 2. What are the existing business ethics practices that are observed by the fast food chains as to: 2.1 2.2 2.3 2.4 2.5 customer and employee welfare quality of food professionalism compliance with rules and regulations on health and safety community and environmental protection 3. How effective are the aforementioned business ethics practices of the fast food chains? 4. What are the problems encountered with regards to business ethics of the fast food chains and how are these resolved? 5. How may the findings be utilized in crafting a guide to improve the existing business ethics practices toward better service? SUMMARY OF FINDINGS Based from gathered data using questionnaire and interview, the researcher came up with the following findings: 1. On the Description of the Respondents 97 1.1 As to Age The first Three (3) in rank are: a. Fifty-seven respondents or 38 percent are with ages 25 and below b. Twenty-four respondents or 16 percent are with age 26-40 c. Eighteen respondents or 12 percent are with age 41-45 1.2 As to Gender The distribution is a. Seventy-two respondents or 48 percent are male b. Seventy-eight respondents or 52 percent are female 1.3 As to Civil Status The first Three (3) in rank are: a. Eighty-eight respondents or 59 percent are single b. Fifty-three respondents or 35 percent are married c. Six respondents or 4 percent are separated 98 1.2 As to Highest Educational Attainment The first Three (3) in rank are: a. Sixty-one respondents or 41 percent have college units b. Fifty-six 56 respondents or 38 percent are college graduates,and c. Twenty-four respondents or 16 percent are technicalvocational graduates 2. On the Existing Business Ethics Practices that are Observed by the Fast Food Chains 2.1 On Customer and Employee welfare The first Three (3) in rank are: a. “Good customer service” with 106 respondents or 71 percent; b. “Affordable pricing” with 97 respondents or 65 percent; and c. “Convenient and comfortable store setting” with 84 respondents or 56 percent. 99 2.2 On Quality of Food The first Three (3) in rank are: a. “Food items are tasty and served hot” with 94 respondents or 63 percent; b. “Healthy ingredients and nutritional information” with 93 respondents or 62 percent; and c. “Safe preparation methods” with 89 respondents or 59 percent. 2.3 On Professionalism The first Three (3) in rank are: a. “Respectful and is aware of customer’s feelings” with 99 respondents or 66 percent; b. “Skillful Communication” with 83 respondents or 55 percent; and c. “Reliable, trustworthy, and caring” with 81 respondents 100 or 54 percent. 2.4 On Compliance with Rules and Regulations on Health and Safety The first Three (3) in rank are: a. “Sanitized and safe store operation” with 94 respondents or 63 percent; b. “Employees of legal working age” with 88 respondents or 59 percent; and c. “Safe cooking and practices procedures” with 87 respondents or 58 percent. 2.5 On Community and Environmental Involvement The first Three (3) in rank are: a. “Proper waste disposal” with 120 respondents or 80 percent; b. “Keep the environment safe and clean” with 105 respondents or 70 percent; and 101 c. “Proper recycling practices” with 73 respondents or 49 percent. 3. On the Effectiveness of the Business Ethics Practices of the Fast Food Chains The first Three (3) in rank are: a. “Compliance with rules and regulations on health and safety” with WX of 4.14 interpreted as Effective; b. “Professionalism” with WX of 4.06 interpreted as Effective; and c. “Customer and employee welfare” with WX of 4.04 interpreted as Effective. 4. On the Problems Encountered by the Customer and Suggestions on How to Resolve the Problems. 4.1 On Problems Encountered by Customers The first Three (3) in rank are: a. “Long customer line” with respondents of 105 or 70 percent; b. “Small dining areal” with 81 respondents or 54 percent; and c. “Incomplete and slow serving of food items” and “small 102 dining area” with 78 respondents each or 52 percent. 4.2 On the Suggestions on How to Resolve the Problems at the Fast Food chains The first Three (3) in rank are: a. “Respond to complaints within minutes” with respondents of 115 or 77 percent; b. “Bigger dining areas for the convenience of customers” with 105 respondents or 70 percent; and c. “More counter persons assigned” with 93 respondents or 62 percent. 5. On the Utilization of the Findings in Designing a Guide to Enhance the Business Ethics Practices of the Fast food chains Towards Better Service. The findings of the study may be utilized by the Fast Food chains in designing a guide to serve as basis in enhancing policies with regards to business ethics practices. The guide below may assist the Fast food chains. a. Review existing policies on business ethics practices b. Respond more effectively on the welfare of employees and 103 customers by providing clean restrooms, providing the right food suggestions to the customers, and good employeremployee relationship c. Assure food quality by providing fresh ingredients, presence of food expiry date, and proper labeling and packaging d. Display professional behavior by having honesty in action, display professional behavior all the time, and practice appropriate dress code. e. Comply with rules and regulations like providing environmentally-friendly packaging, adherence to food safety standards, and hiring medically-qualified personnel f. Be involved more in community and environmental development such as charity involvement, community feeding program, and sports involvement in the community. 104 CONCLUSION Based on the summary of findings from the data gathered, the following conclusions are drawn: 1. The customers of the Three Fast Food chains may be described as to age, gender, civil status, and educational attainment. The majority of the customers of the Three Fast Food chains belong to the 25 and below age bracket. The majority of the customers of the Three Fast Food chains are female. The majority of the customers of the Three Fast Food chains are single. The majority of the customers of the Three Fast Food chains have college units earned. 2. The Fast Food chains showed ethical business practices in the field of customer and employee welfare, food quality, professionalism, compliance with rules and regulations on health and safety, and community and environmental involvement. 3. The business ethics practices are effective in its role towards the success of the Three Fast Food chains. 4. There are business ethics problems encountered and suggestions offered by the respondents in the ultimate aim 105 of providing better service and quality food to the customers 5. The findings were utilized in designing a guide to enhance the existing policies of the Fast Food chains regarding its business ethics practices towards the customers, employees, and society as a whole. RECOMMENDATION In the light of the findings and conclusions, the following recommendations are drawn: 1. The Fast Food chains should provide clean restrooms for the convenience of the customers. 2. The Fast Food chains should enhance its employer-employee relationship 3. The Fast Food chains should give more information about the expiry time of its food items, as well as there should be a presence of proper labeling and packaging. 4. The Fast Food chains employees should always observe professional-looking or appropriate dress code all the time 5. The Fast Food chains should always adhere to food safety 106 standard and should always see to it that all employees have proper health certification. 6. The Fast Food chains should be always involved in Sports development in the community where they belong, as well as more community feeding program and charity involvement. 7. The Fast Food chains should devise a plan on how to reduce the long customer line and should assign more counter persons. 8. The Fast Food chains should always see to it that the food item ordered are complete and be served at the fastest possible time. 9. The Fast Food chains should respond immediately within minutes to the complaints of the customers. If they are customers who ordered the food through delivery, they should be given a telephone call within the day. 10. The Fast Food chains should provide a bigger and convenient dining areas for the convenience of the customers complete with more amenities for children and the elderly. 11. Future researchers should explore other areas that are not covered in the study. 107 13. The guide that was formulated by the researcher need to be implemented to enhance the existing policies. 108 BIBLIOGRAPHY A. BOOKS Cragg, W. Business Ethics and Stakeholder Theory; Business Ethics Review, Vol. 12, 2002. Daft, Richard L. Management, 8th edition, Ohio: Thomson: SouthWestern, 2008. Guasch, Juan Martin, De Gracia, Erlinda Hoo & Esguerra Cerila, Hotel and Restaurant Management: An Introduction, Manila: Grandwater Publications, 2008. Hartman, Laura P. & Desjardins, Joe. Business Ethics: Decisionmaking for Personal Integrity & Social Responsibility, International Edition, New York: McGraw-Hill, 2008. Shaw, William H. Business Ethics, 3rd Edition, California: Wadsworth Publishing Company, 1999 Sternberg, E. 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(Accessed July 3, 2013) www.about.com/sociology, by: Ashley Crossman, (Accessed August 2013) http://www.mcdonalds.com.ph (accessed July 7, 2013) http://en.wikipilipinas.org (accessed July 3) http://www.jollibee.com.ph (accessed July 3) 112 APPENDICES Appendix A - Letter of Permission to Conduct Research Study Appendix B - Letter of Permission to Respondents Appendix C - Survey Questionnaire Appendix D - Curriculum Vitae 113 LETTER TO THE STORE MANAGERS August 18, 2013 THE STORE MANAGER Dear Sir/Ma’am: Good day! I am a Masteral student at Metro Manila College, and at the same time a faculty member of AMA University in Quezon City. As part of my academic requirements, I am presently writing a Thesis entitled “The Role of Business Ethics in the Success of Fast Food Chains in Quezon City: Towards a Guide.” The objective of this research study is to determine the effectiveness of Business ethics practices in the success of the leading Fast Food chains in Fairview, Quezon City. Being one of the Managers of one of those selected, your participation in this research is very much appreciated. With humility Sir/Ma’am, may I ask for your permission to allow me to distribute questionnaires to your first 50 customers within one particular Sunday. They will be answering a series of questions about business ethics. Rest assured that their response will be kept highly confidential and will be used only for the research study. Thank you very much for your support and cooperation. With best regards, RICHARD OLIVER F. CORTEZ Researcher 114 LETTER TO THE RESPONDENTS August 18, 2013 Dear Sir/Ma’am: I am a Masteral student at Metro Manila College, and a faculty member of AMA University in Quezon City. As part of my academic requirements, I am presently doing a Thesis entitled “The Role of Business Ethics in the Success of Fast Food Chains in Quezon City: Towards a Guide.” The objective of this research study is to determine the effectiveness of Business ethics in the success of the leading fast food chains in Fairview towards their customers when it comes to consumer and employee welfare, quality of food, professionalism, compliance with rules and regulations, and community and environmental protection. Please answer as accurately as possible. Rest assured that your answer will be kept highly confidential and will be used only for the research study. Thank you very much for your support and cooperation in this undertaking. Maraming Salamat po. With best regards, RICHARD OLIVER F. CORTEZ Researcher 115 QUESTIONNAIRE Dear Respondents: This is a questionnaire for the study entitled, “The Role of Business Ethics in the Success of the Fast Food Chains in Quezon City: Towards a Guide.” Please answer the questionnaire as accurately and honestly as possible. There is no wrong answer, do not leave any item unanswered. Rest assured that your answer would be treated with utmost confidentiality. (Sgd) RICHARD OLIVER F. CORTEZ Researcher 1. On the Profile of the Respondents Please give the necessary information about yourself by checking or writing on the space below. Name (Optional): _________________________ 1.1 Age ______ 25 and below ______ 26 – 30 ______ 31 – 35 ______ 36 – 40 ______ 41 – 45 ______ 46 – 50 ______ 51 and above 116 1.2 Gender _____ Male _____ Female 1.3 Civil Status _____ Single _____ Married _____ Separated Others, please specify ________________ 1.4 Highest Educational Attainment _____ Vocational – Technical Graduate _____ College Units _____ College Graduate _____ Master’s Units _____ Master’s Degree Holder Others, please specify ___________________ 2. On the Business Ethics Practiced by the Fast Food Chains Direction: Below is a list of the ethics practices. Check as many as are applicable to you. 2.1 Customer and employee welfare ______ Good customer service ______ Provide the right food suggestions to customers ______ Affordable Pricing ______ Convenient and comfortable store setting 117 ______ Clean restrooms ______ Good employer – employee relationship 2.2 Quality of food ______ Healthy ingredients and nutritional information. ______ Safe preparation methods ______ Fresh ingredients ______ Presence of food expiry date ______ Food items are tasty and served hot ______ Proper labeling and packaging 2.3 Professionalism ______ Honest in action ______ Reliable, trustworthy, and caring ______ Respectful and is aware of customer’s’ feelings ______ Displays professional behavior ______ Practices appropriate dress ______ Skillful Communication 2.4 Compliance with rules and regulations on health and safety ______ Employees are of legal working age ______ Environmentally friendly packaging ______ Adherence to food safety standard ______ Safe cooking and practices procedures ______ Sanitized and safe store operation ______ Medically qualified personnel 118 2.5 Community and environmental involvement ______ Proper waste disposal ______ Proper recycling practices ______ Charity Involvement ______ Community feeding program ______ Keep the environment safe and clean ______ Sports involvement in the community 3. On the Effectiveness of the Business Ethics Practices Direction: Read every statement carefully and indicate which options apply to you. If there are questions/statements describing situations that do not apply to you, select an answer which would most likely ever found yourself in such a situation. Use the following code for your options. 4.50 – 5.00 5 Very Effective (VE) 3.50 – 4.49 4 Effective (E) 2.50 – 3.49 3 Moderately Effective (ME) 1.50 – 2.49 2 Ineffective (I) 1.00 – 1.49 1 Very Ineffective (VI) 5 4 3 2 1 a. Providing good customer satisfaction __ __ __ __ __ b. Providing comfortable and adequate __ __ __ __ __ store outlet 119 5 c. Pricing within the means of customers 4 3 2 1 __ __ __ __ __ __ __ __ __ __ d. Labeling and packaging adhere to acceptable and standard practices e. Maintaining honesty, reliability and care to customer f. Hiring personnel of legal age __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ __ g. Adhering to acceptable food safety standards h. Maintaining proper waste disposal and recycling practices i. Involving itself in the community sports charity and feeding activities 4. On the Problems Encountered by the customer with regards to business ethics and suggestions to resolve the problems 4.1 On Problems Encountered Direction: Below is a list of some business ethics problems encountered by the customers. Please check as many as are applicable to you. ______ Employees do not care about the customers ______ Refuse to acknowledge errors ______ Respond to complaints slowly or not at all. ______ Incomplete and slow serving of food items ______ Poor response to information request ______ Poor communication skills ______ Employees are not knowledgeable about the products 120 ______ Long customer line ______ Absence of toddler seats ______ Small dining area 4.2 On Suggestions on how to resolve the problems Direction: Below is a list of some suggestions on how to resolve the business ethics problems encountered. Please check as many as are applicable to you. ______ Respond to complaints within minutes. ______ Train the staff about the products they are selling. ______ Train staff in customer service skills. ______ Rotate staff to increase their knowledge of other areas. ______ Train staff in communication skills. ______ Adequate product information like leaflets for reference ______ More counter persons assigned. ______ Honest effort to “trim the fat” off the menus. ______ Bigger dining area for the convenience of customers ______ More amenities for children … Thank you for your cooperation… 121 Richard Oliver F. Cortez 35 Axtell Street, North Fairview, Q.C. Telephone: 938-58-98 Mobile: 0920-2763324 e-mail: richardolivercortez@yahoo.com CAREER OBJECTIVE: To have a challenging teaching position that will fit my competencies, capabilities, skills, education and experience. PERSONAL QUALIFICATION: - Has the ability to handle business subjects Has the applicable experience gained from many years of teaching Has the needed industry-based experience Has the ability to work around a computerized environment Has the capacity to use newfound knowledge concisely A dedicated, highly motivated team member PROFESSIONAL EXPERIENCE: AMA UNIVERSITY ___________________ August 2010 – present ( Faculty member ) Teaches Business subjects AMA COMPUTER COLLEGE - Fairview _________June 2008 – August 2010 ( Faculty member ) Teaches Business subjects DELOS SANTOS COLLEGE ________________June 2004 – June 2007 (Faculty member ) I handled NSTP 1 & 2 subjects to Nursing students HEXAGON GROUP OF COMPANIES ___________May 2003 – August 2003 ( Financial Analyst ) I was assigned in the Financial Analysis section of the Accounting 122 Department JOY LANGUAGE INSTITUTE _________________May 2002 – January 2004 ( English Instructor ) I handled English Language lessons to Korean students MIRIAM ACADEMY FOR COMPUTER SCIENCE ___June 2002 – March 2004 ( Faculty member ) I handled Basic Accounting and Business Mathematics MANILA MONTESSORI COLLEGE ____________June 2001 – October 2001 ( Faculty member ) I handled Basic Economics, Marketing, Business Mathematics, Finance, Business Law INFORMATION AND INDUSTRIAL INSTITUTE OF TECHNOLOGY ___________ July 2000 – October 2004 ( Faculty member ) I handled Basic Accounting, Management, Business Mathematics, Business Law, Marketing, Taxation, Finance, and Entrepreneurship ALEN SERVICE CENTER, INC. ____________ Nov 1993 – March 2000 ( Accounting Staff ) I handled virtually all aspects of the accounting operation of the company EDUCATION: METRO MANILA COLLEGE – GRADUATE SCHOOL Master in Business Administration (Thesis writing already) _____ June 2011-October 2013 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES – GRADUATE SCHOOL Master in Business Administration ( Units Earned ) _ June 1998-March 2007 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Bachelor in Accountancy ___________June 1989 – March 1993 123 PERSONAL BACKGROUND: Age : Height: Birthplace: Civil Status: 40 5’7 Manila Married Birthday: November 15, 1972 Weight: 140 lbs. Religion: Protestant SEMINARS AND CERTIFICATIONS: Sponsored By: Syllabus Construction Seminar Seminar on Marketing Seminar on Workforce Management Seminar on Digital Communication Seminar on Entrepreneurship Seminar on Cash Management Seminar on Test Construction Seminar on Business and Investment Seminar on Customer Relation Entrepreneurial Forum Seminar on Management Seminar on Fundamentals of Research Seminar on SPSS Seminar on SAP Seminar on Item Analysis Seminar on Test Construction Seminar on CHED accreditation Seminar on Thesis Writing Seminar on Writing Instructional Material Seminar on PowerPoint Presentation Seminar on NSTP Implementation Seminar on Team-Building AMA University AMA University AMA University AMA University AMA University John Calub Training AMA University AMA-Fairview AMA-Fairview AMA University AMA-Fairview AMA-Makati AMA- Makati AMA University AMA-Fairview AMA-Fairview DLS-STI DLS-STI DLS-STI DLS-STI CHED DLS-STI Date May 2012 August 2011 August 2011 March 2011 March 2011 March 2011 Oct. 2010 Dec. 2009 Nov. 2009 Nov. 2009 Dec. 2009 Jan. 2009 Jan. 2009 June 2009 June 2009 June 2009 June 2007 Jan. 2007 June 2006 March 2006 August 2005 Nov. 2004 REFERENCES: Prof. Rainier David Tayurang, Faculty Member - National University ( 09267407348) Prof. Avelino Aguilar, Faculty Member - University of the East ( 09267407348 ) Prof. Nancy Nabung, Faculty Member - DLS-STI ( 0919-8081378)