Ethics and CSR- Individual Project PDF

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Ethics and CSR - Individual ProjectRedFox University Canada West BUSI- 601 Prof. Sxxxxxx, 2021, MarchTable of Contents Introduction Company’s Profile/Product/Scope of operations Shah’s Bakery and Restaurant Ethical/CSR issues and unique challenges that Shah’s bakery and restaurant faces CSR issues S...

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Ethics and CSR - Individual Project

RedFox University Canada West BUSI- 601 Prof. Sxxxxxx, 2021, March

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Table of Contents Introduction................................................................................................................................................. 3 Company’s Profile/Product/Scope of operations ..................................................................................... 4 Shah’s Bakery and Restaurant .................................................................................................................. 4 Ethical/CSR issues and unique challenges that Shah’s bakery and restaurant faces........................... 5 CSR issues................................................................................................................................................ 6 Shah’s Bakery and Restaurant's stakeholders and their varying interests ........................................... 7 Government ............................................................................................................................................. 8 Customers. ............................................................................................................................................... 9 Suppliers ................................................................................................................................................ 10 Communities.......................................................................................................................................... 11 Employees .............................................................................................................................................. 12 Competitors ........................................................................................................................................... 12 How Shah’s Bakery and restaurant managing ethical issues ............................................................... 12 Shah’s Bakery and restaurants CSR strategy ........................................................................................ 13 CSR activities and Stakeholders interest ................................................................................................ 13 Position statement for the management of Shah’s Bakery and Restaurant outlining the overall CSR strategy .......................................................................................................................................... 16 Potential implications of the CSR strategy ......................................................................................... 17 Advantages of emerging CSR strategy ............................................................................................... 18 Disadvantages emerging CSR strategy ............................................................................................... 18 Conclusion ................................................................................................................................................. 20 Reference ................................................................................................................................................... 21

3 Introduction Corporate social responsibility is a growing concept that many companies are encouraged and motivated to use or influenced by external parties. CSR is described as the organization's contribution to society, which is part of its obligation and responsibility that extends over manufacturing products and services for profits (Karakowsky, 2020). The CSR concept brings excellent gains to the company by increasing the brand value, the reputation, and the image of the cooperation. In this assignment, we would discuss as a restaurant owner what are the type of products and services that would be served the scope and restaurant operation. Further, as a restaurant, there may be some unique ethical issues, and challenges common to every business and nonetheless can be said to the restaurants. Because through how the company sows as the public image of a great company, the company behaves unethically to protect the brand and make a profit. However, they have to respect the stakeholders and their interest in the company and its operation as a company. When ethical issues arise as a restaurant, they have to have a keen understanding of the ethical issues that affected parties or affect stakeholders and mage the ethical issues without offending any responsible parties. Later in the report, we would be discussing the CSR strategy and activities that a restaurant in the British Columbian province could follow and what is essential. Because as mentioned above, CSR takes a considerable portion in the restaurant industry, and by doing so, the brand image and reputation within the community could increase drastically; however, CSR has its positives and negatives. This point of view would also be deeply discussed and stated in the report.

4 Company’s Profile/Product/Scope of operations Shah’s Bakery and Restaurant Shah’s Bakery and Restaurant is a place where you can enjoy traditional Sri Lankan foods with the taste of living in Sri Lanka. We offer cuisine and taste of traditional Sri Lankan foods that are prepared with the touch of experienced Sri Lankan chefs that would take you back like you are consuming the foods within the island. We offer rice, dosa, ithli, string hoppers, pitthu, rice hoppers, milk hoppers, koththu, fried rice, and many other traditional Sri Lankan foods. In the restaurant, the primary focus would be providing authentic spicy foods that many Sri Lankans enjoy in their motherland. What is more, we will be taking orders for special festival occasions such as Sinhala and Tamil new year; we would be taking orders to preparing Kavum, Halapa, Kalu dodal, Aluwa, kokis and other traditional sweets. We would be taking orders to prepare tandoori chicken for Muslim festivals, large servings of mixed rice, and watalapam with the conventional touch and sweetness the whole family could enjoy. As there is a niche market for Halal goods in Canada, all our foods would be prepared to satisfy all the customers who consume products from us. As a restaurant other than the products we would be providing a good service. As the owner and CEO, I have all my experience in retail. We will be incorporating the best service model and make the customer feel like a king. Because ultimately, the best service makes and uplifts the quality of the restaurant and the food. This would be a medium-scale business situated in the Vancouver Sunset area in the Frazer street 49th junction. The restaurant would be 4500 square feet, including the kitchen and service areas. We will have Dine-in, take away, and drive-through services available within the premises, and when selecting the location, all of these factors would be considered. As a new business only

5 in one location, the restaurant would be open, but as vision, I have ideas to open in Surrey and New Westminster areas in the future. Ethical/CSR issues and unique challenges that Shah’s bakery and restaurant faces. In every business, there are ethical issues that could arise. It is ubiquitous in the restaurant industry because in a restaurant we basically deal with raw food and the process of transforming them into end goods. And there could be ethical and CSR issues that could challenge the conduct and the integrity of the business model. These are some of the ethical issues that are unique in a restaurant operation. •

The authenticity of the food When serving foods as a restaurateur, we have to serve only the food prepared in the kitchen premises because in some restaurants they buy ready-made food from supermarkets and other institutes and serve customers as their food. According to Pennsylvania Restaurant Association, the above rules must be followed when serving food to the customers (Thompson, 2018).

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Professionalism According to the PRA, the restaurant owners and employees have to carry out their duties and responsibilities in a professional manner and always be vigilant, honest, and maintain the institution's values.

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Service as a primary concern As the owners, they have to uplift the employee knowledge by providing knowledge and skills in the service or the work they are assigned to.

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Involvement with the community As a restauranteur or as an employee, they have to have a footprint in the community organized projects and community works and organizations to ensure the involvement and contributions to the surrounding communities.

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All behaviors and attributes to be ethical. According to the PRA guidance, the restaurant owners and employees must be ethical and behave ethically. All restaurants must represent the food industry and be professional by having environmental concerns about their personal and professional lives. Because a small black spot could damage the entire industry and the reputation they invest to uplift.

CSR issues As for a restaurant, social responsibility is fundamental, and there are many issues and misassumptions involving when a restaurant does or involves itself in a CSR activity (SECO, n.d.). •

Working conditions As Canada is multi-cultural and multi-national, there would be many national working or seeking jobs in the restaurant. Some restaurants would never hire someone based on religion, race, color, gender, or other factors. They would not provide a safe and friendly environment and would not treat everyone equally, not following the employees' and job seekers' labor standards.

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Not following a transparent business model Many restaurants do not provide a transparent service to the customers and provide precooked or other fast foods as their foods to minimize the workload. They lie to customers and give the vegetarians no vegetarian or poor and unethically cooked foods.

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Environmentally friendly Restaurant’s environment is clean ad neat from in-store to the sounding areas by maintaining laws and following the provincial government's rules most importantly, the waste management aspects by following the 3R model Reduce, Recycle and Reuse (The restaurant times, n.d.).

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Use of energy Using minimal energy consumption within the restaurant, as restaurants most use high voltage bulbs to look more attractive and decorate the stores. And all the kitchen area equipment are run by electricity most of the restaurants on these high electricity consumption units. The environment gets polluted through the excess of carbon output, and the air gets contaminated without the knowledge. Shah’s Bakery and Restaurant's stakeholders and their varying interests As a restaurant, many stakeholders influence and bring many interests and influence

regarding the operation, location, conduct, food preparation, and many other activities. Here we would discuss the stakeholders that impact the business on many different levels (Pranas, et al. 2018). Stakeholder matrix (position and importance matrix) (Sexty, 2020)

Problematic Oppose

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Employees Communities

Low priority Support

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Antagonistic • •

Government Competitors

Supporter

Suppliers

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Customers

Most

Least Importance

8 Government As a business that operates in the British Columbian province, there are many rules and regulations to provide a service, environmental laws and regulations, and other hygienic factors set by the provincial government of British Columbia. Also, the federal government has many rules for restaurant operations. The main body to regulate these rules is the Canadian Foods Inspection Agency (CFIA). These are some acts forwards by this agency to all restaurants, hotels, and other food and beverage-related industries (Government of Canada, n.d.). •

Agriculture and Agri-Food Administrative Monetary Penalties Act (S.C. 1995, c. 40)

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Canadian Food Inspection Agency Act (S.C. 1997, c. 6)

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Safe Food for Canadians Act (S.C. 2012, c. 24) These are some of the acts and regulations in place when dealing with foods and beverages.

However, they do not specifically mention the restaurants; the components and sections have to be followed when running a restaurant. In British Columbia, these regulations are in place for restaurants (Small Business BC, 2021), •

According to the COVID-19 pandemic, the provincial health offer announced on September 8th, 2020, that restaurants have to be closed before 11 p.m., Alcohol can not be sold after 10 p.m., and music must not be louder than the typical conversation level.

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On February 9th, 2021, the PHO has made it clear to the restaurants and announced that the people who visit restaurants have to bring their household.

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The washrooms in the restaurants are not open, and if it is open, it should be sanitized after every use.

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The masks are mandatory, and the two-meter self-distancing.

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On March 12th, 2021, temporary regulations have passed that “liquor, and foods primary license” can be delivered by sealed and packaged liquor with the meal to consume outside the premises (Small Business BC, 2021). Though some acts do not apply to our restaurants, the latest updates made by the British

Columbian governments with the rise of COVID-19 pandemic. Customers. After the government intervention, the most influential stakeholder is customers because to satisfy and fulfill their needs, we continue to operate the restaurant. They are the people who consume our product and make judgments about our survival in the market. •

With the development in knowledge, most customers are very concerned with their health and always seek healthy foods and ask about the food's calory levels. With this concern at Shah’s bakery and restaurant, we would be focusing on the minimal calories prepared food that could bring significant health benefits to customers. Though we prepare meat items, there would be many options for vegans and vegetarians.

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Cleanness inside and outside of the restaurant Before the growing concern over the COVID-19 situation, customers seek the clean and how good the restaurant is kept. At our restaurant, we would take extra measures to maintain the floor's environment and inside the kitchen area and surroundings like the back of the restaurant clean and neat at all times.

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Reasonable prices Another prominent fact customer take an interest in is the prices, especially Asian customers, because the food is of good quality and has good service. Still, they have high

10 prices with this factor, and many would avoid the restaurant. By considering these factors at the restaurant, we would serve good price foods with quality, quantity, and standards maintained. •

Reviews and Technologies With the dawn of technology, customers love to review and share the experience via social media platforms and websites. By considering this, my restaurant would be providing a satisfactory service to all customers by providing better quality foods for consumption. And as for technology, we would have contactless card payments and self-ordering mechanisms as options for customers. Because adopting new technologies provides customers with incredible opportunities and enthusiasm to consume in a safe place.

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Other options We would be providing customers with delivery, takeaways from our restaurant by ordering through their mobile devices. This service would be provided to all customers with freshly made foods delivered to the customer's doorstep.

Suppliers As a restaurant, we have to rely mostly on suppliers to provide raw materials in a constant price range without daily fluctuations in prices and supplying good quality goods such as vegetables, fruits, and meat with maintaining the government standards. For this reason, the suppliers take a prominent role in a restaurant. •

Safety As the supplier, they need customers who purchase goods on a regular basis, not with a constant flow. If a customer does not buy their product whenever they bring the product, they can predict when to bring and when to not to bring. So as a restaurant, we have to

11 purchase the product from the supplier whenever he delivers the product with this, and we have the bargaining power to reduce prices and suppliers to sell their product. •

Profit When the restaurant earns, more profit means the goods and services the supplier is providing are good. As a restaurant, they need the customers to make more profit, and with this, the demand for the supply’s increases, and the supplier gets more orders.

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Customer flow This is also connected with the profit because when there are more customers, the quantity to produce increases. With this, the demand and consistency of purchase by the restaurant increases.

Communities Communities take a massive role in a restaurant business as the potential customers and people who are sounding the restaurant communities has a significant stake in the operation and environmental well-being of the restaurant. •

Operation As a restaurant surrounding a neighborhood or n commercial area, the communities always influence the owners in their operation, such as the food served at the premises, the music and sounds, the late hours the restaurant is open, and the liquor more. So as restaurant owners, we have to take extra precautions not to offend the restaurant's communities.

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Environmental factor. There is waste that should be drained from the restaurants as food preparation finishes. It could be organic waste, recyclable goods, or grease and dirty water released from the restaurant. The restaurant has to take extra precautions to have a good mechanism in place

12 to minimize these wastages. Because communities always keep an eye on a bad smell, noise complaints, and late hours human interactions surrounding their neighborhood. Employees Employees also take a great interest in the restaurant as a primary stakeholder. Their curiosity could vary from employee benefits, salary bonuses, profit, job guarantee, and business conduct. Because if the company earns more profit, the employees' salaries will increase. The job guarantee would increase this could bring more bonuses and other monetary and psychological benefits to the company. Competitors Competitors also have a significant stake in the restaurant. As the restaurant industry is very competitive and the industry tends to fluctuate with new trends, the competitors always look for new entrances and what competitive advantages they bring into the market. They always keep watching for new products and services, new technology, new tastes, and the mistakes you make. With the errors and illegal practices, they could get a competitive advantage over the restaurant and capture the market share. How Shah’s Bakery and restaurant managing ethical issues. In my personal experience in retails as a manager and other managerial positions, I have always used the Ethic of caring in any situation. Still, it does not solve the more significant issue and sometimes loses focus and makes the problem even more extensive. With some implications of my ethical behavior and conduct, I thought of using personal virtues, ethics, and caring to balance the implication further. It has brought great success and good decisions not affecting any stakeholder.

13 The restaurant and the owner/manager will be using these two approaches when ethical issues arise. Through these methods, I could satisfy all stakeholders involved in a moral issue. It is essential to understand that when fa...