The reputation of an organization is driven by its core ethical principles. It is a difficult climate for businesses and competition for the coveted dollars of customers is fierce. While, generating profits and maintaining a strong bottom line are the primary purposes of businesses, ethical practices such as a Kantian or Utilitarianism approach define companies, are tangible manifestations of the culture at every level, and are vital to persuading consumers as they choose which establishments to patronize.
Companies spend countless hours contemplating the precise wording for a mission statement. Many organizations expound lofty and admirable ethics combined with customer focused ideals, while others declare dominance in the marketplace. However, these carefully crafted proclamations are not always accurate representations of a company’s ethics. Customer loyalty is determined through the practice of business ethics. There are numerous ethical theories by which the public can be persuaded.
Moral imperatives and universal truths are indicative of the Kantian theory. Powell explained this approach in the following manner,
“A human being is supposed to be different from an a-rational creature, because he can choose to allow his actions to be dictated by inclination according to laws of nature, or he can choose to determine his actions by the law of reason” (Powell, 2006, p. 540).
This theory holds that there is a moral law and it is within each human to rise above selfish inclinations and recognize the merits of such, regardless of the outcome.
At the heart of the Utilitarianism, is the theory of doing the greatest good for the majority. Harcourt argued, “The utilitarianly right action for an agent in a given situation is the action which, of all those available to the agent in that situation has the best consequences, on some agreed account of goodness” (Harcourt, 1998, p. 191). In other words, the consequences are of greater importance than the actions which might be used to achieve the desired result.
It is possible to illustrate the impact that ethical persuasion can have on consumers by examining the successes and failures of respective businesses. Chicago, Illinois is home to a myriad of eateries. These range from casual diners and themed restaurants to fine dining. One of the premier restaurant groups is Lettuce Entertain You Enterprises, founded and chaired by Rich Melman. His businesses are overwhelmingly successful and are a beloved institution within the city. Another well-known Chicago brand is Bravo Restaurants. As will be demonstrated in the following paragraphs, the ethical approach is noticeably different and this is reflected in the longevity, direction, and success of each.
It is the culture or fabric of a company by which ethics may easily be demonstrated. How and why practices are instituted and maintained, the retention rate of employees and customers, and the response to market demand or regression are all indicative of the type of ethics practiced. Taeusch stated “The “domain of the unenforceable” which constitutes the well-defined field of business ethics, and it is within this restricted field that business autonomy must operate” (Taeusch, 1932, p.294). Although, this statement was written over fifty years ago, the premise remains true. Each business must operate within a set of ethics or guiding principles of their own design. Further, target audiences will respond favorably to different methods of persuasion.
As mentioned previously, Bravo Restaurants is a prominent Chicago corporation. The following statement identifies their over-riding principles:
“If it can be branded, Bravo will do it. If it can be labeled, Bravo will do it. If it can be bottled, Bravo will do it. Yes it's true—and if Bravo can't fit it in a bottle they'll find just the right packaging to make it "To Go" ” (featuredfoods.com, 2014)
This demonstrates a goal of continued growth and diversification of brand and product. The thrust of the company identity is market dominance. It is the author’s experience that this drive while profitable, has also resulted in a high rate of employee turn-over and the sacrifice of quality over quantity. Therefore it may be argued that the ethical practice of Utilitarianism has been used successfully to persuade a majority of customers to utilize Bravo’s branding ambitions and businesses. However, these fiscal gains are made at the expense of employees and without the consideration of the quality of product. Due to flat wages, inferior ingredients, and continued cost cutting, their successes are realized through mass production rather than quality, loyalty, and longevity.
Conversely, the applied ethics of Lettuce Entertain You Enterprises began with the personal ethics of its founder and have remained integrated throughout each endeavor. Rich Melman stated,
“We recognize that growth and development is a process that never ends, that relationships need constant nurturing, and that improvement is always possible. A sense of humor is very much a part of what we do. If we can’t have fun and make money, there’s something missing (leye.com, 2014).
Aside from concepts that have remained successful since their inception in the 1970’s, many employees with humble beginnings as bussers, hostesses, and servers, are now managing partners in this organization. Using a baseball reference, he stated, “We have a great farm system! We grow great people and I take great pride in that!” (leye.com, 2014). Melman recognized the importance of quality, and treating customers and employees in the best manner possible. He was one of the first in the industry to offer a full benefit package which included the ground breaking practice of paid therapy sessions for employees. As a former employee of both companies, the author would argue that customer loyalty is earned through Melman’s sound business practices. For example, if something is not to a customer’s liking, it is taken back and an entirely new plate is created and often the customer is not charged. This Kantian type of persuasion has arguably created a thriving and beneficial culture for employees, owners, and customers. This is evidenced by one of the highest retention rates in the industry along with a sterling reputation amongst its peers and consumers. Lettuce Entertain You Enterprises is continually growing and giving back in response.
Businesses operate in a variety of ways and for a multitude of clients with differing needs and expectations. In order to meet the demands of a target group, organizations must use effective forms of persuasion and should do so by employing ethics which are in concert with the company culture and reinforce customer confidence. Indeed, businesses can produce meaningful profits and success while employing ethical strategies such as the Kantian approach or Utilitarianism, and this must be seamlessly integrated at all levels for the maximum persuasion and benefit to consumers and establishments.
References
Bravo Restaurants. (2014) Retrieved from http://featuredfoods.com/cgi-local/SoftCart.exe/a-store/bravoactive.shtml?L+scstore+hdph6609ffc550c5+1418086977
Harcourt, E. (1998). Integrity, practical deliberation and utilitarianism. The Philosophical Quarterly, 191 (48)189-198. http://www.jstor.org/stable/2660289
Powell, B.K. (2006). Kant and Kantians on “the normative question”. Ethical Theory and Moral Practice, 9 (5) 535-544) http://www.jstor.org/stable/27504424
Lettuce Entertain You Enterprises. (2014) Retrieved from http://www.leye.com/about-us/history
Taeusch, C.F. (1932). Business ethics. International Journal of Ethics, 42 (3) 273-288 http://www.jstor.org/stable/2989578
No comments :
Post a Comment