The Chick-Fil-A Controversy

Case Analysis

Presented to Ms. DIANE P. AMIT

Faculty, Bachelor of Science in Business Administration Major in Financial Management
Kapalong College of Agriculture, Sciences and Technology
Maniki, Kapalong, Davao del Norte

In partial fulfillment of the requirements for the course BAC 103 Good Governance and
Social Responsibility

Submitted by:
Danah Jane M. Garcia
LadyJane Namoc
Jay A. Llanto
Roberto T. Animas
Kyla S. Campomanes
Princess Mae Velasco

GROUP 2
BSBA FM2C
I. Introduction

 Describe the situation

 The main problem of the case

II. Issues Underlying the Problem

 Identify any bias in the way the case is described.

 Classify the factors that influence the problem as internal or external to the

organization.

 Identify strategic issues. Identify risk factors.

III. Alternative Solutions to the Problem

 define the alternative possible solutions

 compare the alternative solutions in regard to *theoretical grounding,

*strengths and weaknesses, *risk factors.

IV. Conclusion

 Identify the best solution from the alternative solution. It is important at this

stage to provide a justification for the solution you choose.

V. Recommendations

 Identify the courses of action needed to implement the best solution.

 Express your recommendation(s) precisely.

 Ensure that your recommendations are complementary.

 Ensure that it is feasible to implement the recommendations.

 INTRODUCTION

S. Truett Cathy founded "Dwarf Grill" in Hapeville, Georgia, and is the originator of the

original chicken sandwich. In the early 1960s, at the age of 46, he inaugurated and

officially opened the first Chick-Fil-A restaurant in Atlanta's Greenbriar Shopping Center.

Chick-Fil-A has been a family-owned, private business for the past 66 years. "We firmly

believe in treating every person who comes through our doors with honor, dignity, and

respect," they assert on their website, and they advocate favorable treatment of all

stakeholders, regardless of how long the employee determines to work for Chick-Fil-A.

Dan Cathy, Truett Cathy's son, continues his father's legacy after his father passed

away in September 2014 at the age of 93. Dan, being an evangelical Christian,

maintains family-oriented, biblical values throughout his business. In 2012, he publicly

made statements opposing same-sex marriage. He stated on The Ken Coleman Show,

"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’. 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". There were those who supported same-sex

marriage and felt a loyalty to Chick-Fil-A prior to Cathy’s comments who were then very

taken aback. There were also those who supported Cathy’s biblical statements and

were angered by the 15,000 protestors. Furthermore, some protesters viewed Cathy's

comment as a human rights issue, whereas other protesters said, "To me, it makes no

difference." They have pretty good chicken, and he has a right to his view." Following

the uproar, Chick-Fil-A received a National Chick-Fil-A Appreciation Day, which

Facebook claimed was not created by the company in question but rather by the
people. This occurrence occurred as they expressed their desire to support the

organization and everything it has done.

MAIN PROBLEM OF THE CASE

The primary dispute in the case is that Chick-Fil-A's president and COO, Dan Cathy,

expressed statements in a public interview that appeared to be in opposition to same-

sex marriage. Dan's speech strongly attracted 15,000 protesters to their various

branches in Hapeville, Georgia, and Washington, D.C. Dan Cathy, during the interview,

quoted, "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'. 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". Dan adheres to his moral principles

throughout the public interview as a consequence of his upbringing, as indicated in the

situation where his family manages the company by upholding standards based on their

morality or biblical beliefs, which do not correspond with what the majority believes.

Nonetheless, Dan Cathy's views have been so forthcoming, confident, and pompous

that he has failed to consider those who have peculiar and divergent moral and ethical

standards. Moral ideals can be damaging to others who have opposing views.

ISSUES UNDERLYING THE PROBLEM

Chick-fil-A's CEO's views against same-sex marriage were protected by the First

Amendment's freedom of speech. Others saw them as harmful and divisive, yet this

emphasized the contrast between free and responsible speech as well as the influence

of words on individuals and communities. In addition, this controversy addressed

questions about firms' obligations to encourage inclusion and diversity in their business

practices. Many customers and campaigners urged Chick-fil-A to show their solidarity

for LGBTQ+ rights and equality by means of actions rather than words.

ALTERNATIVE SOLUTIONS TO THE PROBLEM

Alternative Solution 1: Advantages Disadvantages

Improved Diversity and  Implementing  Changes could lead

Inclusion Policies diversity and inclusion to negative

Advantages policies to create an reactions or

inclusive boycotts.

environment.  Resistance to

 Improve public change can lead to

perception of the internal conflicts.

company's efforts to  Implementing

address diversity- diversity and

related concerns. inclusion initiatives

 Attracting diverse requires careful

talent to foster an planning, training,

inclusive culture to and resources.

attract diverse talent.

Alternative Solution 2: Advantages: Disadvantages:

Open Dialogue and  Chick-fil-A  Engaging in

Community Engagement should advocate open dialogue on

communication in sensitive topics can

 order to promote lead to

understanding and confrontations and

inclusiveness. disagreements.

 Collaborating with  Building

community groups relationships and

and stakeholders to trust is a time-

achieve consuming process.

positive outcomes.  Open dialogue can

 Engaging in lead to improved

meaningful understanding, but

conversations and may not address

addressing concerns systemic issues.

to help rebuild trust.

Alternative Solution 3: Advantages: Disadvantages:

Transparency and  Implement  Transparency is

Accountability Measures transparency difficult due to legal

measures to build and privacy

trust with customers concerns.

and stakeholders.  Skepticism from

 Demonstrating public and

commitment by stakeholders may

publicly holding the arise from

company accountable perceived

 for its actions and insincerity.

commitments.  Implementing

 Chick-fil-A can transparency

encourage industry measures may

standards, set an attract increased

example for industry scrutiny, potentially

standards, and exposing potential

promote positive controversies.

change.

CONCLUSION

Open conversation and community participation are critical for ensuring that all

members of a community are represented and have a voice in decision-making

processes. Open discourse allows a community to come together and work toward

common goals by establishing areas for people to voice their thoughts and concerns.

Decision-makers may make better informed and equitable judgments that represent the

needs and goals of their constituents if they actively listen to the concerns of community

members. Furthermore, by establishing venues where all perspectives may be heard,

decision-makers can make more informed and equitable judgments that represent their

constituents' needs and objectives.

RECOMMENDATIONS

Best Alternative: Open Dialogue Person Responsible Time Frame

and Community Engagement

Activity 1: Community forums Managers 2-3 weeks

Activity 2: Customers feedback Supervisors and 4-5 weeks

programs Employees

Activity 3: Community Managers 1-3 months

Partnerships