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business ethics. Answer the questions Over the years, many studies on the social responsibility-financial performance rela 2 ship have produced mixed results. In a comprehensive

business ethics. Answer the questions
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Over the years, many studies on the social responsibility-financial performance rela 2 ship have produced mixed results. In a comprehensive meta-analysis, one review nce are positively related. The researchers conclude by saying....portraying man 1 of 1 is choices with respect to CSP and CFP as an either or trade-off is not justified in light of 30 years of empirical data. In another study, the conclusion was reached that here is a small, but positive relationship between corporate social performance and research supports a positive association between corporate social and financial perfor mance." 2.9a Three Perspectives on the Social-Financial-Reputation Relationship To understand the relationship between social performance, financial performance, and reputation, it is important to note that there have been at least three different perspec tives that have dominated these discussions and research. ETHICS IN PRACTICE CASE Burgers with a Soul -- Fresh, Local, Sustainable Burgervide seis not only burgers but also good work. But biodiesel. The company buys its antibiotic and if you don't live in Oregon or the State of Washington hormone-free beef locally. you may have never heard about Burgerville, a company In addition to burgers, Burgervite offers a wild Coho founded in 1961 in Vancouver, Washington. Today, there salmon and Oregon Hazelnut Salad. Meals for children are 40 Burgerville restaurants spanning those two states often come with seeds and gardening tools rather than with more scheduled to come. the usual cheap toy offered at the national chains In the 1990s, when Burgerville began losing sales of Burgerville extends its good works to its employees its burgers to the national chains, Chief Executive Tom The company pays 95 percent of the health insurance for Mears decided to differentiate his product and sell "bur its hundreds of workers. This adds $1.5 million to its gets with a soul Moers, the son-in-law of the founder, annual compensation expense. To get its affordable decided to combine good food with good works. The health care, employees have to work a minimum of 20 company began to build its strategy around three key hours a week for at least six months, a more generous words-fresh, local, and sustainable. It pursued this arrangement than most provided by stores Strategy through partnerships with local businesses, Being a good corporate citizen is expensive when farms, and producers. In 2003, Gourmet magazine reo done the Burgerville way. Though the company won't ognized Burgerville the home of the nation's freshest reveal its financial bottom line, one industry consultant fast food estimated that its margin is closer to 10 percent com According to the company Website, "At Burgerville, pared with McDonald's 15 percent. doing business responsibly means doing business sus tainably. One example of this is our commitment to pur- 1. Is the world ready for a social responsible, sustain chasing 100 percent local wind power equal to the able, hamburger? How much extra would you be will energy use of all our restaurants and corporate ing to pay, assuming the burgers really taste good? office. The company purchases its electricity from 2. What tensions among its economic legal ethical, local windmills. Burgerville uses "sustainable agricul and philanthropic responsibilities do you think are ture." which means that its meat and produce are free most pressing to Burgerville? from genetically modified seeds or livestock. In its 3. Does Burgerville sound like a business that might cooking the company avoids trans-fats, and once the work in Oregon and Washington, but maybe not cooking oils are used up, they are converted into elsewhere? What is the future of Burgerville? www burjournal.com

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