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Ethical and Socially Responsive Business

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Ethical and Socially Responsive Business
Derrick Smalls
BUS 100 – Introduction to Business
Strayer University
Prof. Sherene A. S. Magrath, MBA

Ethical and Socially Responsive Business

Introduction

Staff this is your CEO here and I am putting out this reminder to the entire staff of Chipotle including Officers and Members of the Board of Directors about the utmost importance of the adherence to the Code of Conduct. I am advising you that it is very important for each of you to review the Code of Conduct if you have not already done so at your earliest convenience. There are key areas of the Code of Conduct that you all will need to pay close attention to. I advise that each of you get a good understanding of these key areas for they can impact our business significantly. Also please pay attention to the issues and consequences that could happen if one of the key codes is violated. “Chipotle’s Ethics and Conflicts of Interest Policy, Protection and Use of Company Assets, and Chipotle’s Confidential Information” (Chipotle Mexican Grill, Inc.) are the key areas that you will need to pay close attention to.
Describe key areas of the selected company's code of conduct that are of significant importance to the business, and explain why.
Integrity Statement
“Chipotle is a company based on integrity. Integrity is about being real and being honest. It means doing the right thing even when no one is watching. These values permeate the way we do, and do not do, business” (Chipotle Mexican Grill, Inc.).
The integrity statement explains the integrity of the company. In this section of the code you will find the values and expectations of the company. You will also find who to consult with according to what position that you are currently holding. If you are a regular employee you will consult with your Manager/Director or People Support Department. If you are an Officer or a Member of the Board of Directors you will consult with Chipotle’s General Counsel. This section of the code is important, because it lays out the expectations of the company and gives direction to whom if an issue or any questions was to arise who you will need to talk to or consult with. It also explains the outlook that Chipotle has on conflicts of interests and unethical behavior.
Protection and Use of Company Assets
“In a nutshell, you may not use Company property, information, or your position for personal gain, nor should you use assets or labor for personal use. All employees should endeavor to protect Chipotle’s assets and ensure their efficient use. Theft, carelessness, and waste have a direct impact on our profitability. Any suspected incident of fraud or theft of Company property should be immediately reported for investigation. Company equipment and supplies should not be used for non-business purposes, though incidental personal use may be permitted” (Chipotle Mexican Grill, Inc.). This is important to the company because it was implemented to protect the company’s assets and future profits that can be made. It explains to the employees of that Theft, carelessness and waste have a direct impact on the profits of the company.

Chipotle’s Confidential Information

“You may not use proprietary or confidential information for personal gain or to Chipotle’s detriment. The improper use of Chipotle’s name, trademarks, or other intellectual property is prohibited. Confidential information must not be disclosed to anyone outside of Chipotle, and should not be discussed with Chipotle employees who do not have a real need to know this information in order to do their jobs” (Chipotle Mexican Grill, Inc.).

In this section of the code it explains the importance of keeping Chipotle’s information Confidential. This code protects the proprietary information that is owned by Chipotle and the confidential information as well. If the information is leaked it could cause serious damage to the company. That is why Chipotle has a confidentiality and Non-disclosure agreement that the employees sign when they start their employment with the Company. It also states that if you have any doubts about whether information is confident consult your manager/director or Chipotle’s Corporate Compliance Counsel. “The intentional or inadvertent disclosure of confidential information could seriously damage the Company” (Chipotle Mexican Grill, Inc.).
Explain the key steps that the company should take to ensure that employees follow the code of conduct.

I believe that the company should present the code of conduct at orientation of each employee. Doing so would ensure that all of the employees have been presented with the code of conduct at the beginning of employment and cannot say they did not read it or did not know they was not supposed to do a certain thing. The Company can also make it mandatory to read the code of conduct and have a knowledge test for the employees to take once the code of conduct is reviewed. This will ensure that the employees have a good understanding of the code of conduct.
I believe that taking this approach to making sure the code of conduct has been read will work and should be implemented if the company has not already done so.
Suggest three (3) ways in which the restaurant can engage in socially responsive activities in the community within which it operates.
“Philanthropy, businesses involved in philanthropy makes monetary contributions that provide aid to local charitable, educational and health-related organizations to assist under-served or impoverished communities. This action can assist people in acquiring marketable skills to reduce poverty, provide education and help the environment” (Susan S. Davis).
“Community Development, companies, businesses and corporations concerned with social responsibility align with appropriate institutions to create a better environment to live and work. For example, a corporation or business may set up a foundation to assist in learning or education for the public. This action will be viewed as an asset to all of the communities that it serves, while developing a positive public profile” (Susan S. Davis).
“Social Education and Awareness, companies that engage in socially responsible investing use positioning to exert pressure on businesses to adopt socially responsible behavior themselves. To do this, they use media and Internet distribution to expose the potentially harmful activities of organizations. This creates an educational dialogue for the public by developing social community awareness. This kind of collective activism can be affective in reaching social education and awareness goals. Integrating a social awareness strategy into the business model can also aid companies in monitoring active compliance with ethical business standards and applicable laws” (Susan S. Davis).
These are my suggestion for the company to engage in socially responsive activities. This will help the company become more socially responsive in the community. Chipotle as a company are doing fundraisers now.

Conclusion

In today’s society it is very important to be ethical and socially responsive as a company. The code of conduct is very important and should not be taken lightly for it not only protects the company, but it also protects the employees as well. Chipotle as a company has already begun to be active in the community. I believe that all businesses big or small should be active in the community not only for the company’s sake but also for the customer’s sake it shows that the business adds value to their environment and community.

References
Chipotle Mexican Grill, Inc., (2010).CHIPOTLE MEXICAN GRILL, INC. CODE OF CONDUCT. Retrieved from http://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-govConduct

Davis, S., (2013). Examples of Social Responsibility Strategies. Demand Media.
Retrieved from http://smallbusiness.chron.com/examples-social-responsibility-strategies-10633.html

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