-
Essay / Business Ethics: Jack in the Box Fast Food Restaurant
INTRODUCTIONJack in the Box is an American fast food restaurant that opened in San Diego, California in 1951. Its owner, Robert Peterson, was a businessman who already operated other restaurants. as well as a food manufacturing plant that would later become Foodmaker Inc., the parent company of Jack in the Box. An investment group spun Jack in the Box into a private company in 1988, but it went public again in 1992 (JackInTheBoxInc.com, 2013). A year later, a devastating incident occurred that shook the entire company. On January 13, 1993, an unusual number of children were treated for E. coli infection in the Seattle area. Jack in the Box was quickly found responsible by the Washington State Department of Health for the illnesses as well as the deaths of three children. As soon as CEO Robert Nungent was informed of the crisis, he took a number of steps to properly assess and manage the situation. His actions were a detrimental aspect of how Jack in the Box recovered from such a damaging experience. A number of communication strategies were used to transform the crisis into a resolved conflict. The company also assessed the needs of each stakeholder and took responsibility to satisfy them. Jack in the Box has had a very proactive approach in handling the issues at hand. In the following analysis, I will focus on the issues that arose, how they were/could have been resolved, the stakeholders involved, and how crises can affect.ANALYSISCorporate Social Responsibility (CSR) occurs when a company goes to -beyond compliance and engages in “actions that appear to promote some social good, beyond corporate interests and what is required by law” (McWilliams, Siegel, & Wright, 2006). ..... middle of paper ......ng and rebuild trust with those involved in the crisis. Another piece of advice I would give is to have a plan for how the situation will be corrected. It is also important to take steps to appease those who lost something in the disaster. If the seven questions that are part of the Texas Instruments framework had been used in the decision-making process, I believe the actual decisions would have generally been made the same. When Nungent decided to cover the hospital costs of patients, the action was legal and perfectly in line with the company's values. It was not an action that would make him feel bad and if it had been published in the newspaper it would have made him seem sincere in his concern for the victims. It wasn't a bad decision to make, and the fact that they offered to pay for those who sought legal action as well as those who didn't was a very strong thing to do..