A Case review of Leah Anderson Dan Johnson Joel Taylor An exercise in Moral Discernment Background ◦ Founded in early 1960’s by S. Truett Cathy ◦ Privately held and family owned, headquartered in Atlanta, GA ◦ Built company values around Cathy’s Christian values ◦ Company meetings and retreats include prayers ◦ $4.1 billion in annual sales in 2011 a 13% increase over 2010 ◦ $68 million in contributions to educational and charitable organizations and millions of dollars in food donations over the past 3 years. ◦ 1982 Started the WinShape Foundation Locations As of June 1, 2011 Issue Statement Corporate Purpose "To glorify God by being a faithful steward of all that is entrusted to us. To have a positive influence on all who come in contact with Chick-fil-A.“ -Dan Cathy Ethical Issue Anti-Gay Statements by CEO In 2010 Chick-Fil-A’s charitable arm, WinShape, donated nearly $2 million dollars to anti-gay groups (equitymatters.org) Dan Cathy reinforced his views in an interview on the Ken Coleman radio show in which he stated “I think we are inviting God’s judgment on our nation when we shake our fist at Him and say ‘we know better than you as to what constitutes a marriage’ and I pray God’s mercy on our generation that has such a prideful, arrogant attitude to think that we have the audacity to define what marriage is about.” Should companies promote their religious beliefs? Ethical Dilemma Pluralism: Affirms that every “ism” has its own independent validity and an equal right to our respect (Stott, 19) ◦ Statement by CEO supports company’s values is spite of potential financial ramifications ◦ Taking a stand towards beliefs Ethical Dilemma Ethical Relativism – Def. the belief that morality is relative to the society where it exists and that its criticism and evaluation are irrelevant ◦ CEO’s statement outlines societal issue of defining marriage as opposed to accepting God’s definition ◦ CEO has said he would probably fire an employee or terminate an operator who "has been sinful or done something harmful to their family members.“ ◦ Closed on Sabbath Ethical Dilemma Using Religion in Business PROS: ◦ Company saw a 2.2 percent increase in visits from July to Sept. ◦ Arkansas Governor, Mike Huckabee, created Chick-Fil-A Appreciation Day on August 1, 2012 which led to record setting day of sales ◦ The turnover among Chick-fil-A operators is a low 5% a year. Among hourly workers turnover is 60%, compared with 107% for the industry CONS: ◦ Students at several colleges and universities launched grassroots efforts to ban or remove the company's restaurants from its campuses ◦ 1 in 5 adults have no religious affiliation ◦ 13 million (6% of US population) self-described atheists and agnostics ◦ Chick-fil-A, the corporate parent, has been sued at least 12 times since 1988 on charges of employment discrimination, according to records in U.S. District Courts. Objective Viewpoints Adverse effect on corporate culture Increased sales Religion in the workplace Philanthropic model and contributions of the business Open Forum How should Chick-fil-A proceed? ◦ Stay Firm? ◦ Stand Down? Religious beliefs in a business model ◦ Corporate vs. Personal Values ◦ Requirement for employees to uphold values In Closing Company’s Response ◦ Amended affiliations ◦ Revamped philanthropic donations We intend to stay the course," he said. "We know that it might not be popular with everyone, but thank the Lord, we live in a country where we can share our values and operate on biblical principles." - Dan Cathy By following principles and beliefs, company has flourished Thank You