What is Corporate Social Responsibilty?

decades (Cannon, 2002) No longer can either rely solely on convenience and product consistency as unique selling points. KFC management clearly understands that a strong corporate emphasis on consumer health, quality and socially responsible initiatives must be incorporated. The new advertising campaigns or new product lines by themselves are not sufficient; to maintain and attract new customers, KFC needs to re-define its overall brand value.

 

As Goyder (1981), “Industry in the coming time can no longer be regarded as a private arrangement for enriching shareholders. It has become a joint enterprise in which workers management, consumers, the locality, Government and trade union officials all play a part.” Being major users of nature society and environment, business enterprises could play an important role in the protection of nature and environment and promote the social objectives.

 

To achieve these objectives KFC work either in partnership with Government, or on it own. For example, it has established a “CSR Management Department” to articulate and implement its CSR activities, including Corporate Governance, Compliance with the Law, Corporate Ethics, Internal Control, Environmental Management and Corporate Citizenship.

 

The benefits of the profits of the KFC are channeled back to the people through the major philanthropic trusts and other activities; Figure 1 shows the details of KFC profitability and expenditure.  

 

Figure 1: Profitability and expenditure on society by KFC Malaysia

Source: Measuring Business Excellence, Vol. 9 No.1, 2005

 

The help and donations distributed to five sectors (community, environment, people, safety quality and social compliance and health and wellness) accounting to the KFC CSR Malaysia reports, details are shown at below in Table 3.

 

Sectors

Achievements

Community

KFC Malaysia raised Rm 4,007, 421 to help Malaysian children in need.

KFC’s restaurants in Malacca provided a RM 40,000 donation support for victims of the flood. Local franchises were heavily involved in fundraising activities to help families affected by the flood.

Environment

Reusable crates are used by all dairies that supply KFC’s restaurants in Malaysia with ice milk, milk and creamers.

Over 95% of the cardboard used behind the counter at KFC in recycled. 

KFC’s fry box packaging is made from 50% recycled paper, including 35% post-customer fiber.   

People

The Human Resources Hot-Line provides employees with immediate attention to questions about their employment at KFC.

Regular commitment (opinion) surveys are conducted with the employees. 

Safety quality and social compliance

KFC will provide its customers with safe food products; food safety is KFC number one priority.

KFC believes treating animals with care and respect is an integral part of an overall quality systems program that makes good business sense.

Health and wellness

Enhanced the quality of popular Chicken Nuggets by moving from a blend of white and dark meat ot white meat Nuggets.

Customers and public education, available at KFC’s websites

 

Table 3: KFC Malaysia CSR Activities in 2006

Source: KFC CSR report, http://www.haas.berkeley.edu/responsiblebusiness/KFCCSRFellowsProgram.html, [Assessed on 30-Apr-2007]>

 

The analysis of the CSR activities of KFC restaurants shows that KFC is committed to doing what is right, to being a good neighbor, a good corporate citizen and a good employer in every community in which we live and work. And they have a proven track record of listening to the customers, and responding with innovative ideas to meet customer changing needs.

 

Conclusion

The ever-increasing market power of global fast-food retailers, and KFC’s high visibility through branding, has made it a target both for governmental public interest campaigns (e.g. the Food Standards Agency’s promotion of healthy eating), and for citizens’ and consumer lobby groups (e.g. the Consumers Association). In the years to come, issues such as corporate accountability, corporate ethics, and disclosure of relevant corporate information shall become

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