Corporate Ethics: The Chicken and Gay controversy

American media is abuzz with the Chick-fil-a controversy going on these days. For people who do not know, Chick-fil-a is a fast food restaurant chain that specializes in chicken sandwich. As I have talked to some of my American friends, I can assure you that the chicken sandwiches do taste great at Chick-Fil-A. The business is owned by a Christian family, the Cathy group. Samuel Cathy is the founder and CEO of the 4 Billion $ company. Through its charitable wing, the Winshape Foundation, Chick-Fil-A discourages homosexuality and same sex marriages. This religio-political stance has brought this hugely successful fast-food chain in a controversy with Liberals condemning its stance while conservative Christian groups endorsing its views. COO Dan Cathy has clear-cut views on this issue, ‘’by breaking the norms of the traditional family, America will have to bear God’s justice’’.

So here we have a plain case of a Corporate Giant that endorses homophobic views. Now, holding such views is not illegal in USA. Anyone coming from the Bible belt of the southern states is prone to hold such views. But as a business student, I am more concerned with the point whether a company, firm or industry should propagate such controversial views or not.  

How does it affect the profits?

I don’t have any clear data now to prove anything. Many of the rationalists, liberals and gay people have started protesting against the company. Thomas Merino, the mayor of Boston and Chicago City council has already expressed their intentions to stop the expansion of this company in their respective cities. The Jim Henson Company which had a toy licensing agreement with Chick-Fil-A has said that it would cease its business with the company and instead donate its money to Gay Right Organizations.

One politician, Mike Huckabee called for an ‘Appreciation Day’’ to the Conservative Christians, asking them to visit their local Chick-A –Fil restaurant on August 1. According to the reports, the company has recorded unprecedented sales on that day.

Here, we have a case where a controversy generated by a company has gained both, chances of loss and profits. We still do not know the end results, but chances of profit seem more plausible looking at the large number of Christians in south that are also the customers of Chick-Fil-A.

What if it rains dollars?

What if taking a religious or political stand creates more wealth for a person or company? Would it be then ethical for the company to endorse such views?  

Since the birth of civilization, money has been considered a great evil in the societies. Therefore we see prescriptions against it in every religious book, be it the Bible or Quran. But it is a subject for debate whether money is really the source of all evil. Bhagwad-Gita says that it is the men’s desires which lead him to misery and evil. Because of the immense effect of religions in human societies, we can understand why majority of people see large corporate and rich people as evil and wrong.

I am not going to proceed with this debate with theology in my mind. A business entity can only survive if it earns profits. Every economist will stand with me on this view. Profit can be gained through various ways. They can be ethical and unethical, legal or illegal.

Here I am not endorsing fraud or such means to show inflated market figures and earn profits. Why? It is because such norms can easily lead a successful company to bankruptcy. Anyone who doesn’t understand that should read about the fate of Enron and Satyam.

Philosophers discuss and determine ethics in a society. There is no universal consensus on right and wrong about many issues including Gay marriages. So, how can we expect a company to endorse any one particular view? Also, it is a point of freedom of speech. Chick-Fil-A is not directly harming any individual by making Homophobic views or supporting any such foundations. So, I as a business student will always stand with it.

Should they do anything for profit?

Business is an important part of a free society. Businesses provide jobs and security to millions of people. Many of the vaccines, computer technologies and industries have been created only because of the profit-earning lust of some people. According to economics, people would work harder to achieve anything if there is an incentive attached to it. That’s the same with businesses. The more the profit, the harder and ingenious a business becomes. If it is not, it loses in the race of competition.

This article is about the freedom of a company to hold any views and propagate any views in order to sell its product. I don’t think there is any wrong with that.

If the government or society tries to censor the views of a company regarding a social issue, than how can we be sure that the same government with its power of censoring groups and ideas won’t trample upon our rights and freedom in some later time.

A company can be an individual enterprise and its thoughts represent the freedom of speech of an individual. It should not be suppressed in any way.

So, what if a company talks against black people or women?

I think we can very well allow such company to say what it wants to. There are many people who underestimate the power of free market economics. When a company propagates hatred against a particular segment, it alienates a large part of its potential customers. In a competitive market, any other company would easily take a chance and create a market for the same kind of products for the alienated part of the society.

If Chick-Fil-A hates gays and liberals, atheists and rationalists, it is one of the best times to start your own restaurant that specifically caters to everyone without any discrimination.

My View on Homosexuality

I am no one to pronounce a judgement on anyone’s sexual behaviour. Homosexuality is a natural phenomenon among animals and Homo sapiens are no different. I would love to vote for any proposal that allows any Homosexual to marry his/ her partner and live his life as he wants.

Recommendations:

Henry David Thoreau declined to pay taxes to the American Government because it was indulged in war and slavery. For this, Henry was imprisoned for a day. He used this time to write an essay called, ‘’On Civil Disobedience’’. This article has since motivated many great people like Gandhi, King and Mandela. My friends and readers who oppose the Homophobic views of Chick-Fil-A should stop eating at its restaurants. More gay people should come out and show their intimacy and love publicly near Chick-Fil-A restaurants (As they did on 4th August). Show them that you are better than those corporate people who hate the freedom of other people. Don’t just speak, act!!

Competitors of Chick-Fil-A have got a golden chance to promote themselves. They should seriously use this chance and try to beat the competition.