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Corporate Social Responsibility

By dcooperan May 04, 2013 1652 Words
Introduction of CSR
Corporate Social Responsibility (CSR) has become a widespread topic in business issues and critical sector. In the fast fast companies are facing fast change and consumers always on the topic of traceability of food chain. Consumers and governmental organizations are increasingly focusing their attention on corporate social responsibility (CSR) practices. CSR research has evolved over the last 50 years (Carroll, 1999). CSR is divided as a four parts pyramid (Carroll, 1991). Firstly, the meaning of economic responsibility, organization should be profitable. Secondly, the legal responsibility is very important for the company to obey the laws of the society. Thirdly, the ethical responsibility of the company to do what is right and philanthropic responsibility of the company is related to social, educational, recreational or cultural. Each factor is very important and there are lively relationship between all and when understanding the meaning it reflected to corporation.(Carroll, 1991).As a foundation, Carroll (1979, 1991) integrated various streams of CSR research to define a model that extended corporate performance beyond traditional economic and legal considerations to include ethical and discretionary responsibilities. Article ‘Philanthropic’ Support for the Arts: Views from the Corporate

Sector (Nigel J. Baldwin B.Bus. M. Accounting &ump; Finance)

Graduate School of Business
RMIT University
August 2009
CSR in food industry
CSR in the food industry are complicated and with the development of internet, mostly companies use websites for showcase their CSR on food safety developed marketing goals. Moreover, CSR activities can enhance brand, customer satisfaction, employee’s rates and relation with government (Freeman, 1984). There are so many other benefits include improved financial performance, reduced operating costs, relationship link with customers and awareness of their needs (Jones, Comport &ump; Hillier, 2008) Introduction

The fast-food industry has been developing rapidly in the markets globally, at the same time bringing several significant changes in practices, work, and employment relations. Fast food is very much popular in every culture, it is spreading by a society, including commercial, political, media and other systems.Fast food restaurants are very famous and their products prepared in a standardized method that their customers satisfied with quickly and efficiently for takeaway. The growth and success has brought disadvantages to the workers’ rights and the conditions of work as well as providing well insight on how work and employment relation should be managed better. (Royle &ump; Towers, 2002)

Fast food
The meaning of fast foods are convenience foods that can be prepared and served very quickly. Fast food is also known as “junk food” which includes high food in calories, low in nutrients, Thick burger, Sandwich with cheese, French fries, pizza, Chicken Pizza Masala, and etc. in the present scenario, mostly people prefer to eat fast food instead of homemade food. The main reason is behind that fast food is fast, cheap and convenient. The growth of fast food industry has been an important environmental bribe for increased food consumption. In the last 20 years, the percentage of calories has increased from 3% to 12% in the fast food in the United States. Over last 30 years, U.S. spending has increased from $6 billion to $110 billion.

Effects of Fast-Food Consumption on Energy Intake and Diet Quality among Children in a National Household Survey From 1950s, fast food demand has grown into a dietary pattern among children in the United States today. Expenditure on fast food by children increased from 2% of total energy in the 1970s and 10% total energy in 1990s. Now days, fast food restaurants more than doubled from 1972 to 1995 and an estimated 247115 nationwide restaurants.

Effect of fast food
At the same time, fast food is creating a big social problem, which is obesity. Obesity has become a national major problem in many countries (Han et al. 2002).there is a large population in developing countries and accounted for 39% of the total global prevalence of obesity (Florentino 2002). It is clear that fast food is not good for our health. Fast food contains lot of sodium and fat these ingredients give birth to obesity. Therefore, some people think that fast food companies should pay attention for the negative effects. “Every day, U.S children from 4 to 19 aged eat fast food, which likely packs on about six extra pounds per child per year and increase obesity problem, a study of 6,212 youngesters found (fast food Linked to Child Obesity, 2002, para1). Obesity is now has become a health problem in America with the highest obesity rate in the developed countries. Zimmerman (2006) estimated that in 2006, America spent $142 billion dollars in fast food restaurants. There are so many effects that includes in fast food: ● Fast food contains high amount of sodium that increase the risk of high Blood pressure. According to the National Research Council 1,200-1,500mg of sodium is daily used for adults. . ● Trans fat that is found in various fast foods and mostly Trans fat is commonly found in all ingredients foods. It is a harmful fat that not only increase bad cholesterol but also reduce to good cholesterol levels.

● Eating fast food lifestyle leads to obesity and give birth too many other harmful diseases such as cholesterol and it can risk of heart attack.

Fast Food Fast Foods Introduction fast food in Australia
The fast food market in Australia has experienced energetic growth over the lastdecate it is an estimated that 1.64 billion meals and takeaways were served by fast food. This financial statement for 44% meals served in the commercial foodservice sector. The fast food market has changed over the years and influenced by overseas treands and more uniquely Australian eating out preferences.

Present trends in fast food industry
In the present scenario, they are convenient to eat and cheaper than other alternative Menu trends
In the present scenario, sales rates are increasing day by day. Technicmic said that 80% sales are driven by 20% of customers. Hamburger sales are very much in the Quick Service Restaurants. Chicken, sandwiches and wraps are in Quick Service Restaurant menu.

Causes that involves in fast food growth
In 1982, customer spent at fast food outlets grew at annual rate of 6.8% while 4.7% growth on the table service restaurant expenditure. Mostly people prefer to eat quick and convenient meals. They do not want to spend time for prepare meals because it is better for long travel. For example, McDonalds has number of outlets across the United States and its level has risen dramatically over 25 years. Restaurants not only provide fast food service but they provide quick and changing tastes and preferences of their customers. In the United States, mostly consumers spend more on fast food than other countries (National Restaurant Association December, 1999). Full service restaurants are control 28.8% of the sales in food service industry and it is benefits from customers because demand is increasing for alcoholic beverages in the afternoon and evening meals (Economic, Inc, December, 2000). Electronic and computer technology plays an important role in changes in restaurant industry.

Developing system in the fast food industries
The international development of the fast food industry because social and technological advance has increased during the early 19th century. Social advance such as cars and franchies that have been invested in fast food industries. “The extraordinary growth of fast food industry has been driven by fundamental changes in American society” (Mifflin).

Ethical Issues with Fast Food Companies
In the present scenario, the fast food industry is spending more money than other marketing campaigns. Nutritionists and doctors have proven that eating too much food is not healthy for the body. This is the most important ethical concern with fast food industry. It reflects that if excess calories that are used in the production of fast food continue than mostly population will run into health complications. It is the reality that 280,000 Americans die in every year with overweight (Carson-DeWitt &ump;Frey, 2004) There is increasing work week hours in America since the 1970’s and fast food companies are taking lot of profit by offering a quick stop for food for customers because there is no enough time for consumers. It shows that each consumer is responsible for his/her own body. They should have enough knowledge about bad food and should be responsible to take enough time for exercise. At the same time, fast food companies should provide honest effort to their menus.

Philanthropic Issues
Corporate Social Responsibility (CSR) and Philanthropy show the worldwide interest in academic perspective and commercial success (Burson-Marsteller, 2000). The philanthropic community in United States is preoccupied by a dark shadow and always growing industry, philanthropy include role of financial resources in business contribution to education, art and community.

Legal issues

Economic issues

Immoral management

Amoral management

Moral management


29.4 Status and Future Of Fast Food
According to Status and Future of Fast Foods: Consumer Trend Report, a January 2010 report by Technomic, consumers’ perception of fast food is no longer confined to quick-service, drive-thru restaurants, and convenience stores. A dual concept has emerged, consisting of traditional fast food, and of “food fast,” fare served quickly with a greater emphasis on flavor, quality, and ambiance. Forty-one percent (41%) of consumers say that their idea of places that are offering ‘fast food’ has expanded to include fast-casual restaurants and full-service restaurants offering carryout and curbside service.

According to the Top 100 Fast-Casual Restaurant Report, a May 2009 report by Technomic (, annual sales for the fast-casual segment are $16.7 billion, increasing about 10% per year.

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