Managing the Hospitality Context - The Nature of Business for Fast Food Industry - Assignment Example

Title: Managing the Hospitality Context Student’s Name: Institutional Affiliation: Date Submitted: Table of Contents Executive Summary p.3 1.0 Introduction p.4 2.0 Background of Fast Food Restaurants 2.1 McDonalds Fast Food Restaurants p.4 2.1.1 Kentucky Fried Chicken (KFC) Fast Food Restaurants p.5 2.1.1.1 Nandos Fast Food Restaurants p.6 2.2 Environmental criticisms 2.2.1 McDonalds criticisms p.7 2.2.2 KFC criticisms p.7 2.2.3 Nandos criticisms p.8 3.0 Evaluation of the policies 3.1 Energy conservation p.8 3.1.2 Supplier code of conduct p.9 4.0 Conclusion p.9 5.0 Reference List p.10 Executive Summary The Fast food industry is surrounded by many critics hence the management must implement other strategies in order to retain their market share. In lieu of this environmental sustainability is very important among other activities like supplier code of conduct, participation in community-based projects and ethical practices. The advantages of these policies are very productive to the society. The resources are prevented from depletion through the energy efficiency programs hence will be available for future generations (Kincheloe 2002, pp. 54). By maintaining a scorecard for the suppliers it means that they are committed to change that will positively influence the environment. Again, the filing of reports by the federal government on how they are utilizing energy shows their commitment to transparency. By collaborating with other organizations and sponsoring community activities, it has helped in the overall development of the community. Such activities are important for the business as they help in risk management since their reputation is well guarded. However, critics still view this as a plan by fast food multinationals to malfeasance their corrupt activities. Managing the Hospitality Context 1.0 Introduction Many multinationals have delved into environmental sustainability in order to improve their social image. Companies have realized the importance of integrating corporate profitability with social value as a way of expanding the market share (Michael 2003, pp. 89). The emergence of globalization has led to intense competition that has facilitated companies to build new strategies for survival. Corporate social responsibility is very appealing to the public because it embraces activities that may lead to development in the community. Consequently, such benefactors gain a lot of public support in their endeavours that helps them to survive challenges in the market. Such acts of responsibility may include, environmental sustainability, adherence to ethical standards, proper pay for workers, non-exploitation of consumers and many more. In this paper, three global fast food companies will be discussed with reference to their themes in environmental sustainability. 2.0 Background of Fast Food Restaurants 2.1 McDonalds Fast Food Restaurants The signature meal for McDonalds is the burger and it is the largest enterprise in the fast food industry. According to McDonalds Company, environmental sustainability is an important segment in their operations (Ritzer 2010, pp. 20). This has an advantage to their esteem as they feel ethically committed and it makes business performance to improve. In lieu of this, the company has developed five themes that guide the environmental sustainability objectives. The restaurant operations theme dictates the way energy resources like water and electricity are used. The main aim is to continue production but utilize minimal resources. In addition, the company management feels that it is their duty to account and reduce their greenhouse emissions as pertains to carbon dioxide. They have enrolled in programs sponsored by the government like Energy Efficiencies Opportunities (EEO) to brainstorm with other companies on how to improve. They also advocate for transparency on their greenhouse emissions by filing reports with the federal government under the Energy Acts. They have also found ways of managing their waste generation and keeping their areas clean. The workers take turns to collect litter in neighbouring streets while the customers are warned to stop littering through parking signage. The Corporate relations theme focuses on installation of energy saving equipments in all the subsidiary restaurants. Such equipments include rainwater tanks that collect water to be used in cleaning instead of letting it go to waste. Dual flash toilets are used in order to cut back on water usage as it relies on gravity and lacks siphoning (McConnell 2007, pp. 245). Again, it contains to buttons that handle liquid and solid wastes differently by varying the water levels. The water restrictors on the taps help to regulate the amount of water that flows from a tap to avoid wastage. Lastly, they have fitted sensor lighting bulbs in the parking spaces that are automatic to enhance low consumption of electricity. 2.1.1 Kentucky Fried Chicken (KFC) Fast Food Restaurants KFC’s signature meal is the fried chicken even though they sell salads, sandwiches, beans, and French fries. KFC has three themes regarding environmental sustainability in which they believe it has to be all rounded. First off is the Halal theme where they have joined programs that advocate for halal foods and ingredients. This means that they use proper slaughtering criteria and serve foods that are not forbidden like pork or fresh blood from animals (Edge 2004, pp.49). They also formed an animal welfare council within the organization to set guidelines for the suppliers on how to handle and care for animals. They also organize annual forums through their workplace theme, which acknowledge the efforts of long serving employees, and promote the best. The workers are also trained to curb the effects of fire that is a common menace in the industry. The environment is very important to them because they believe it is their duty to preserve planet earth for the future generation. In lieu of this, they have developed wastewater treatment that enables water to be recycled. They also have a supplier code of conduct that dictates to the supplier the ethical principles of the company. In lieu of this, KFC cannot take in products from suppliers who use child, indentures, or forced labour, mishandle animals, or discriminate their workers. 2.1.1.1 Nandos Fast Food Restaurants Nandos is famous for its peri-peri chicken dishes and operates in five continents across the globe. They have focussed on recyclability of packaging materials to prevent depletion of the forests where paper is obtained. The customers are educated on no-litter policy through signage and printouts on the package. The company has also sought better alternatives of packaging that are efficient in recycling rates like cardboard boxes or plastic bottles (GCE 2008, pp. 7). They also have refiling glass dispenser bottles for sauces to prevent paper litter in the waste stream. All their in-house meals are served with washable utensils to curb in-house packaging waste content. The staff are also taught on ways to improve environmental performance and sustainability through seminars and on-job training. They have also supported the farmers of Mozambique where the peri-peri is grown by initiatives like NetforLife to curb the deadly malaria disease cause by mosquitoes. Finally, Nandos has taken up initiatives in using eco-friendly technology to prompt energy reductions by 30% and reduce the electricity consumption levels. 2.2 Environmental criticisms 2.2.1 McDonald’s Criticisms Critics do not believe that corporate social responsibility is genuine from the business context. In the case of McDonald vs. Morris & Steel, the company faced many allegations against these two environmental activists. It was accused of buying its supplies from greedy sources thus contributing to economic imperialism. Again, there was a tendency by the company to waste grains, water, and electricity thereby becoming accomplices to third world starvation. They were also charged with chemical alteration of food substances and production of junk food that was both unhealthy and addictive (Books LLC 2008, pp.65). Further still, the activists claimed that their advertisements juggled with the emotions of children who were led to demand unhealthy food. In addition, they were guilty of slaughtering many animals in a bid to make their burger steaks. Moreover, the company was very unfair to the workers because it paid them so little, they worked so many hours and yet they were prohibited from joining any workers’ union. Customers also complained of food poisoning from the contaminated meats that were not discarded even when they were spoilt. Overall, the company was accused of using the corporate social responsibility activities to cover up their malfeasances. The company won the case after many appeals but it destroyed their public image until they had to make donations to any charity named by their accusers. 2.2.2 KFC Criticisms Critics like Greenpeace say that KFC has contributed to the depletion of Amazon forest through its demand for soy. By accepting to purchase soy from Cargill which illegal derives soy from the forest for so many years. On the other hand, animal rights activists like People For the Ethical Treatment of Animals (PETA) say that KFC ignores the animal rights. They further allege that the formation of the KFC Animal welfare Advisory Council is just a strategy to hide its malfunctions. PETA showed evidence of chickens from their suppliers being beaten, overcrowded, ripped apart, and banged on walls. Customers have accused them because of poor waste disposal as rats thrive in most of their outlets. In addition, staff members are known to fight with food when playing thus disregarding the fact that food is a rare commodity in some parts of the world where people are starving. 2.2.3 Nandos Criticisms Critics like PETA say that Nandos has not laid out a supplier code of conduct to emphasize on good treatment for animals. In addition, Nandos’ advertisements use the physically disabled that is blind people to show their popularity. Apart from these criticisms, Nandos has not been criticized on environmental concerns because it has tried its level best. 3.0 Evaluation of the policies 3.1 Energy conservation McDonald’s advocacy and partnership theme as the company is able to interact with government organizations and other environmental bodies. This also allows them to sign up programs ran by the government and environmental activists to help in sustaining energy efficiency. In addition, McDonalds has helped in the care of animals and respect them, as they deserve. The culture & Communication theme sums the business objectives by making environmental sustainability their culture (Patrice 2006, pp. 30). The company creates awareness about the environment by joining initiatives and events that support this endeavour. They also make donations to charities to support the unfortunate in the society and encourage people to live healthy lifestyles. In lieu of this, they have sponsored the national basketball team in Australia, little athletics in South Wales and football leagues. They also invest in educational programs that enlighten and award students like Maths online for primary students, Eisteddfod for those above 20years and puppet programs for elementary children. The company hopes to change their packaging styles to allow a target of 65% in recycling trend to save up on more resources. The initiatives by KFC are important because first off they save a lot of water through their water treatment and recycling program. Water is very vital so it must be guarded well. Again, they recycle their packaging materials to avoid depletion of resources like paper that comes from trees. KFC recognizes the importance and rights of animals so they protect their handling and care through animal welfare program. According to Global Carbon Exchange report, Nandos has significantly improved in its environmental issues. It has foreseen a reduction of its carbon dioxide emissions by 30% in the future, which is a tremendous proportion (GCE 2008, pp. 11). The staffs at Nandos are well paid and the seminars or trainings help them in being competitive in the industry. The use of recyclable materials will save the forests and the litter awareness program will lead to better waste management. Lastly, by helping the farmers in Mozambique they will facilitate the flow of peri-peri thus will never result in artificial food supplements. 3.1.2 Supplier code of conduct The supplier code of conduct helps in protecting the rights of children through this, KFC disengages itself from child labour practices. McDonalds has the sustainable supply theme that gives guidelines to their suppliers of potatoes, meat, vegetables, and other products. The company management holds a scorecard to judge which of their suppliers does not adhere to the rules. The guidelines include prevention of soil erosion, reduction in waste generation, energy efficiency, reduction of harmful by-products and pest management. Other promising suppliers replace the suppliers who perform poorly in the scorecard and the reports are file quarterly. . Nandos does not purchase any meat products from suppliers who do not adhere to Halal regulations. 4.0 Conclusion The nature of business for fast food industry does not lead to promotion of people’s health. The production of French fries, deep fried chicken, and burgers is the main contributor to obesity, diabetes, and high blood pressure. Again, the objective of the business is to maximise profits in order to remunerate proper returns to the shareholders who have risked their investment in the company (Philip 2004, pp. 98). By engaging in these programs, they use a part of the company’s profits that reduces the dividends distributed to shareholders. By enrolling in these programs, these companies are using a lot of money that must be accounted for. The only logical way is to incorporate the extra expenditure in the final price of the consumer. In the end, the consumer is forced to pay for these environmental incentives, which reduces their purchasing power. Overall, it is an industry with challenges but it is up to the companies to find eco-friendly alternatives and healthier ingredients in order to stay in business since this seems to be the only way to expand their market share. 5.0 Reference List Barnerjee, S. B 2010, ‘governing the global corporation: A critical perspective,’ Business Ethics Quarterly, Vol. 20, no. 2. Pp. 265-274. Books LLC 2008, European Court of Human Rights Cases Involving the United Kingdom: Mcdonald's Restaurants V Morris, Books LLC, London. Edge, J 2004, Fried Chicken: An American Story, Putnam Adult, Kentucky. Global Carbon Exchange 2008, Nando’s National Packaging Covenant Annual report, Vol. 3, pp. 1-29. Kincheloe, J.L 2002, The Sign of the Burger: McDonald's and the Culture of Power, Temple University Press, Philadelphia. Klaus, G. H 2008, Corporate Governance and Directors' Liability: Legal, Economic & Sociological Analyses on Corp Social Responsibility, London: Walter de Gruyter Press. McConnell, R 2007, Environmental Issues: An Introduction to Sustainability. Prentice Hall, New York, NY. Michael, P 2003, Harvard Business Review on Corporate Responsibility, Harvard Business Review Press, New York, NY. . Patrice, E 2009, McDonald’s Direct Marketing through Broadcast Media: TVs, Radio, Cable, Infomercials, Home Shopping, and More, NTC Business Books, New Orleans. Philip, K 2004, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, Wiley Press, New York, NY. Ritzer, G. (ed) 2010, McDonaldization: the reader, Pine Forge Press, New York, NY. Read More