Business Ethics: Critical Thinking

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Business Ethics: Critical Thinking

Chipotle Mexican Grill (CMG), Inc is a chain of restaurants with headquarters in Colorado, US. Currently, Chipotle has more than 1600 stores in the US, UK, Germany, Canada and France. The company has employed more than 45,000 workers. The purpose of this paper is to describe the key aspects of chipotle’s code of conduct. Further, the paper explains the steps that chipotle should take to make sure that the workers follow its code of conduct. Lastly, the paper explains ways in which Chipotle can engage in socially responsive activities within the communities in which it operates.

Key aspects of Chipotle’s Code of Conduct

Chipotle has developed a code of conduct that guides the ethical behaviors of the members of the board of directors, managers, supervisors and employees. One of the key aspects of the company’s code of conduct is that all the aforementioned internal stakeholders are required to avoid engaging in activities that might lead to conflict if interest. The company does not allow the internal stakeholders to accept gifts from potential vendors, vendors, business entities, competitors or suppliers when conducting business on behalf of the company (CMG, 2013). However, an internal stakeholder can accept a gift if; it is not in monetary terms; it is under $150; it is not perceived as payoff or a bribe; it is consistent with the company’s business practice; and it does not violate any regulation or law. The above criterion also applies to any gift given to suppliers or vendors (CMG, 2013).

Further, the internal stakeholders are only allowed to attend entertainment invitations as representatives of Chipotle in cases where such invitations do not have any negative impact on the company (CMG, 2013). In addition, the internal stakeholders are expected to protect the company’s assets and are disallowed from using them for personal gains or in a fraudulent manner (CMG, 2013). The employees of the company are allowed to engage in outside business and employment activities, as long as the activities do not lead to conflict of interest with the company. The internal stakeholders are not allowed to use the company’s credentials, including names and trademarks, to the detriment of Chipotle or for personal gains (CMG, 2013). Any communication gadget within Chipotle should be used with regard to the company’s policies. Internal stakeholders are expected to act professionally when communicating and when making decisions. In addition, the internal stakeholders are expected to be fair and honest when dealing with the external stakeholders. They are also required to adhere to professional standards and government laws and regulations when carrying out business activities, including when recording and reporting information. The internal stakeholders are required to take care of the natural environment and to avoid engaging in any form of discrimination (CMG, 2013). All the aforementioned aspects of Chipotle’s code of conduct are important to the company since they guide the behaviors of workers, enhance the legal standing and reputation of the company and guide the internal stakeholders to make the right decisions.

To ensure that the employees follow the code of conduct, the company’s management should start by training them on the content of the code of conduct. The second step is providing a summary of the content of the code of conduct to the workers that would serve as a reminder. The next step is seeking feedback from the employees and providing further clarification in case of need. The last step is asking the employee to sign a document as a way of agreeing to abide by the code (Muñoz & Encinar, 2012). Chipotle can engage in socially responsive activities when interacting with the surrounding communities in various ways. One way is to provide employment to the members of the surrounding communities (Nijhof & Jeurissen, 2010). The second way is through establishing or engaging in environmental conservation projects. Another option is to develop or to support important projects within the surrounding communities, such as hospitals and schools.

Conclusion

In conclusion, Chipotle has developed a comprehensive code of conduct that guides the conduct of internal stakeholders and their relationships with the external stakeholders. The code of conduct can only be beneficial to the company if all internal stakeholders accept its content. To enhance acceptance, the employees and other internal stakeholders should be involved in the implementation process. Importantly, the company should enhance its relationship with the members of the surrounding communities through engaging in socially responsive activities.

References

CMG (2013). Code of Conduct. Retrieved from

http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-govConduct

Muñoz, F. & Encinar, M. (2012). On economics, ethics, and corporate social responsibility.

Modern economy, 3(4), 355 – 363

Nijhof, A. H. J. & Jeurissen, R. J. M. (2010). The glass ceiling of corporate social responsibility.

International Journal of Sociology and Social Policy. 30(11), 618 – 631.