The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

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Tuesday, September 24, 2024

Strategic CSR - Chick-fil-A

The trouble with operating a business along the lines of strict values is that those values sometimes get in the way of commercial success. The article in the url below highlights a particular problem facing Chick-fil-A. As many are aware, Chick-fil-A closes its stores on Sundays. In the middle of a town, this is not a problem in the sense that there are alternatives for those who might otherwise have eaten there. When the Chick-fil-A is the only restaurant in a rest area at the side of a highway, however, it is a problem for people travelling on Sundays, especially given that Sundays is one of the busiest travel days of the week:

"The 27 rest stops that line the 570-mile-long New York Thruway are being systematically renovated now as part of a $450 million private investment plan. … But the developments have left some motorists, like Ms. Bogacz, frustrated and hungry — and now lawmakers in New York have taken up their cause, asking why many of the state's rest stops now feature a restaurant that is famously closed on one of the busiest travel days of the week."

This has become such an issue that New York's politicians are getting involved, asking why the developer would be allowed to give this concession to a restaurant that closes on one of the busiest travel days of the week:

"This month, lawmakers introduced a new bill that would require service area restaurants along the Thruway to open seven days a week. The proposal, like many things involving Chick-fil-A, has set off a minor political firestorm."

The reason is that this move has been interpreted as an attempt by legislators to force Chick-fil-A to compromise its values:

"The lawmakers say they are not targeting Chick-fil-A, which has frequently attracted controversy for the conservative Christian values of its chairman, Dan T. Cathy, who has spoken publicly against same-sex marriage. They just want to keep drivers fed."

After all, those values are entrenched:

"The bill has angered those who believe the lawmakers are trying to force Chick-fil-A to open on Sundays, altering a policy the company has maintained since 1946, according to its website, which allows employees to rest and 'worship if they choose.'"

Alternatively, the other side argues they are not targeting Chick-fil-A or its values:

"The sponsors acknowledged that they were not fans of the chain or its social views. But they said they were more concerned in this case about protecting rest areas as a public good."

Chick-fil-A's values have caused clashes over a long period of time (e.g., see Strategic CSR – Chick-fil-A):

"Headquartered in Georgia, Chick-fil-A has more than 3,000 locations nationwide and is beloved by many. But it has attracted plenty of detractors, too. In recent years, separate proposals to open Chick-fil-A restaurants inside airports in Buffalo and San Antonio were scrapped following public pushback. In 2021, when Applegreen was first awarded the contract, a different group of lawmakers in New York wrote letters to the Thruway Authority and the governor asking them to reconsider including Chick-fil-A in the highway's rest stops in light of the chain's past support of anti-L.G.B.T.Q. causes. ... The company was heavily criticized in the past for donations to groups that sought to stop the legalization of same-sex marriage. But under pressure, the company stopped such donations, and more recently has come under fire from conservatives for its diversity, equity and inclusion efforts."

The bottom line, though, and something I have always admired about Chick-fil-A (even though I do not share the core values around which it operates) is the firm's willingness to adhere to its values, even when it would be more profitable for them to compromise:

"The chain, for example, operates a location inside Mercedes-Benz Stadium, the home of the Atlanta Falcons, that was closed for all eight of the football team's home games this season, which took place on Sundays."

Take care
David

David Chandler
© Sage Publications, 2023

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Bright New Rest Stops for Sunday Drive, but Maybe Pack a Lunch
By Andrew Keh
January 2, 2024
The New York Times
Late Edition – Final
A1, A14