Marketing Ethics: Creating Value or Distracting Consumers?

In early $2014,$ Chipotle Mexican Grill announced that it would stop using genetically modified ingredients $($GMOs$)$ in its restaurants. Many observers applauded this move. However, critics of the fast$-$food chain cited a lack of evidence to support its anti$-$GMO stance. They suspected that Chipotle$$s anti$-$GMO claim was simply a ploy to distract consumers from a larger issue: the company$$s risky sanitation practices. Chipotle$$s anti$-$GMO policies may have won the burrito chain some health$-$conscious customers, but at the same time customers were becoming sick after eating at some Chipotle locations, calling into question the firm$$s food handling and safety practices.

Steve Ells, founder and co$-$CEO of Chipotle, said the GMO decision was $$another step toward the visions we have of changing the way people think about and eat fast food. Just because food is served fast doesn$$t mean it has to be made with cheap raw ingredients, highly processed with preservatives and fillers and stabilizers and artificial colours and flavours.$$ However, ridding Chipotle$$s supply chain of genetically altered components proved difficult. The chain discovered GMOs in basic ingredients such as baking powder, cornstarch, canola and soy oils, cornmeal, and sugar. And many non$-$GMO ingredients were in short supply. For example, at one point, Chipotle found that it could not supply all its locations with enough non$-$GMO pork to make carnitas. Given the supply chain challenges, Chipotle decided to use non$-$GMO products in its food preparation but to continue to serve some soft drinks with sweeteners derived from genetically engineered corn.

$$ Questions

$1.$Has Chipotle$$s focus on eliminating GMOs created value for its customers? Defend this market strategy.

$2..$From an ethics standpoint, discuss Chipotle$$s focus on sourcing non$-$GMO food products rather than attention to food safety. The company$$s oversights in food safety resulted in numerous customers becoming ill $($E$.$ coli, norovirus, and salmonella$).$ Discuss the challenges Chipotle still faces in overcoming the negative image that resulted.