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, November 22, 2022

Strategic CSR - Chick-fil-A

The article in the url below is superficially a story about the local nuisance being caused by a popular fast-food drive-through lane, during the COVID lockdown:

"Business has boomed for Chick-fil-A franchisee Travis Collins during the pandemic, thanks to surging appetite for chicken sandwiches from his drive-through window. Now he's throwing the works at controlling the lines of cars spilling onto surrounding streets. The city council in this affluent coastal city has proposed declaring his drive-through a public nuisance. Neighbors and city officials say customers hungry enough to brave the crowded lot for Chick-n-Strips or the signature sandwich of chicken with pickles on a buttered bun have caused so many traffic jams, bus delays and hazards on the city's main drag that something must be done."

Apparently, this is not a problem that is restricted to California, but is more common to Chick-fil-A's across the country:

"Businesses in Toledo, Ohio, and Beaumont, Texas, have filed lawsuits against Chick-fil-A franchises over mushrooming drive-through queues. In the Township of Union, N.J., a judge ordered another Chick-fil-A location to temporarily close its drive-through, after a competing restaurant next door said its customers couldn't get around the line."

And, it is officially, a thing:

"In a 14-page memorandum titled 'Traffic Conditions Associated with Chick-fil-A Queuing' sent to city officials in January, Santa Barbara's chief transportation engineer, Derrick Bailey, wrote that the drive-through snarled traffic for an average of 70 minutes on weekdays and 92 minutes on Saturdays. The backup on the busiest day of the study period was 2½ hours."

The article offers no real explanation as to why this is such a problem at Chick-fil-A restaurants, other than hinting that the current "labor shortages" are resulting in a slower service. Implicit in the story, however, is that this is happening at Chick-fil-A and not other fast-food restaurants, which results from the greater popularity of this chain.

Whenever I see a story about Chick-fil-A, however, I can't help but think of the values at play. In short, it is a complicated company – on the one hand, a poster-child for an era (not so long ago) of homophobia in the U.S. (see Strategic CSR – Chick-fil-A); on the other hand, it is also a company that treats its employees extremely well and has a progressive franchise model (only one store per franchisee).

So, what does this say about the importance of values to a company? Or, perhaps more importantly, the importance of values to the company's stakeholders who, in theory, are seeking meaning in their interactions with the company? How much are they aware of the values that define this company (and that their support is a tacit endorsement), or are they simply thinking in more shallow terms (I like the sandwiches, or I want a job, etc.). There are three options, as far as I can see. People either:
  1. Don't know.
  2. Know and don't care.
  3. Agree.

This seems relatively important because, if it is #1 or #2, it is harder to make the argument that values matter to stakeholders, and there is value to firms of publicly stating their values and taking sides on issues of social relevance and importance. If, in fact, stakeholders don't know or care to find out (or, worse, know and don't care), then the more traditional model of CEOs striving to remain 'neutral' in the social battles of the day will be a missed opportunity for society to progress.

Take care
David

David Chandler
© Sage Publications, 2023

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Chick-fil-A's Drive-Through Crowds Get Neighbors Squawking
By Christine Mai-Duc
April 25, 2022
The Wall Street Journal
Late Edition – Final
A1, A10