Ethical and socially responsive conduct among business organizations has become crucial in the contemporary business environment. Ethical considerations have proved to have a significant influence on the business activities of organizations. In this essay, the codes of ethics and business conduct of the Cheesecake factory are examined in a bid to determine the extent to which they can influence the organization’s business activities.
As already mentioned, the company under scrutiny in this essay is the Cheesecake factory. It is a multinational organization, which operates in the U.S, Canada, and several countries in the Caribbean region (The Cheesecake Factory, 2014). It runs an assortment of upscale cafes and bakery facilities in about 170 locations across the region (The Cheesecake Factory, 2014). Its code of ethics and that of business conduct are of great significance to its business activities.
Sections of the Company’s Code of Ethics and Code of Business Conduct that is Significant to its Business Activities
Both the company’s code of ethics and code of business conduct have areas that are of significance to its business activities. For example, in its code of ethics, Articles III and IV have a direct influence on the organization’s business activities. Article III touches on the standards that are expected to be followed by the organization’s senior staff. Honesty, ethical conduct, and fair treatment have emphasized These features among senior employees are critical for the Cheesecake factory because the senior employees include chief financial officers who have direct control over the organization’s finances.
Fairness, on the other hand, is of importance to the organization’s reputation. Article IV cautions staff against engaging in activities that place them in direct conflict with the organization’s business interests. Senior staff can easily use their positions to serve their personal interests at the expense of the organization’s interests. Therefore, Article IV protects the organization against greed and unscrupulous behavior among senior employees.
The code of ethics and that of business conduct applied to the remaining employees of the Cheesecake factory also have sections that directly relate to its business activities. For instance, Section C of the document is the most outstanding in terms of significance to the business activities of the Cheesecake factory. It extensively explains matters relating to the conflict of interest between employees and the organization. It places emphasis on such matters as engaging in business with relatives, external employment, corporate opportunities, and the handling of suppliers and contractors. The document points out that it is not permissible for employees to involve in activities that place them in direct or indirect competition with the organization’s interests.
Steps to Ensure Adherence to the Code of Ethics
The code of ethics of the Cheesecake factory can be enforced in a series of creatively formulated steps as outlined below. First, the organization should ensure that the code of ethics is thoroughly disseminated among employees. Various methods, including bulletins, company website posts, and newsletters, can serve this purpose (Mayhew, n.d.). Second, the company should thoroughly explain to its employees what the code of ethics requires of them.
When this step is satisfactorily completed, the third step involves developing a comprehensive reward scheme for those who adhere to the code of ethics. All the employees must be aware of the existence of such a scheme. Fourth, employees need to know that the code of ethics is an integral part of the overall performance appraisal process. Finally, adherence to the code of ethics should be part of the long-term employee recognition and reward program (Mayhew, n.d.). These steps can help the Cheesecake factory to build a culture of adherence to the code of ethics and code of business conduct at all times.
How the Cheesecake Factory can Engage in Socially Responsive Activities
Some of the activities that the Cheesecake factory can engage in, in order to be considered socially responsive, include making itself accessible, social hiring, and stakeholder engagement (Carroll & Shabana, 2010). The idea of accessibility has to do with inclusion. To earn the approval and goodwill of the community, the organization can strive to project itself as an entity that espouses diversity among its employees and customers. Its products and services, employment opportunities, and information should be open to anyone who is interested in them. This way, everyone will feel included in the activities of the organization.
In addition to making itself accessible, the organization can use social hiring to strengthen its position as a socially responsible organization (Carroll & Shabana, 2010). Social hiring implies that the company focuses on hiring marginalized members of the community who have challenges in getting meaningful employment elsewhere. By doing so, it can economically empower the marginalized members of the community and earn the approval of those who care (Carroll & Shabana, 2010).
Finally, stakeholder involvement can also help the Cheesecake factory to project itself as socially responsible. It should seek an audience with its customers, employees, and the community at large over sensitive matters and ensure that it acts in the best interest of all the people involved. In cases where the groups do not agree over some issues, the organization can facilitate consensus building among them.
Conclusion
The Cheesecake Factory has done well over thirty years of its existence. Nonetheless, it can do even better if the matters pertaining to its code of ethics and code of business conduct are addressed in accordance with the proposals outlined in this essay. Ethics and social responsiveness are the key drivers of business growth in the contemporary business environment and must be embraced by all the organizations that seek to achieve success.
References
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.
Mayhew, R. (n.d.). How to enforce a code of ethics through rewards. Web.
The Cheesecake Factory. (2014). Web.