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Ethics play a pivotal role in the functioning of business organizations, particularly in the realm of business research. Ethical behavior is paramount in ensuring the credibility and integrity of any research activity conducted within a company. Business research, defined as a systematic inquiry providing information for managerial decisions (Cooper & Schindler, 2011), holds the key to valuable insights into company policies, customer service, and consumer buying habits. However, when unethical research methods are employed, it can distort results and lead to severe consequences such as damage to a company's processes, financial standing, and overall image.
An exemplary case highlighting the repercussions of unethical business research is the 2004 discrimination lawsuit against the renowned restaurant chain, Cracker Barrel.
The company faced legal actions due to flawed research methodologies and investigations that influenced the court's decision adversely. The core issue revolved around allegations of racial bias in customer service, culminating in a series of discriminatory practices against African American and other minority customers.
The genesis of the case lay in random testing of Cracker Barrel's facilities and stores to assess potential racial bias in customer service.
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The purpose of this research was not only to identify instances of racism but also to implement culture and diversity training as part of a settlement with the Department of Justice in 2004. The agreement followed complaints from minority customers who claimed discrimination, stating instances of disparate treatment such as prolonged waiting times, seating away from white patrons, inferior service, and other discriminatory practices at Cracker Barrel establishments (Fears, 2004).
In response to the allegations, Cracker Barrel conducted its internal research to counter the claims.
The company, however, concluded that no wrongdoings had occurred and emphasized its longstanding commitment to anti-discrimination policies. This led to the Department of Justice commissioning an independent auditor to verify Cracker Barrel's assertions. The results of the investigation were damning, revealing that 80 percent of interviewed individuals, primarily former Cracker Barrel employees, reported experiencing or witnessing discriminatory treatment of customers at the restaurant. The findings implicated some managers in directing, participating in, and encouraging stereotyping and discriminatory behavior among employees (Schmit & Copeland, 2004).
The legal aftermath of the case saw Cracker Barrel ordered to pay fines and damages to affected customers. However, the repercussions extended beyond financial penalties, with ongoing investigations into the company's discriminatory practices by various private and federal entities, including the Department of Justice, NAACP, and the Equal Employment Opportunity Commission (EEOC). The root of the problem lay not only in the initial customer complaints but also in the company's inadequate response and flawed approach to resolving the issue.
The critical flaw in Cracker Barrel's approach was the lack of seriousness in addressing customer complaints. This failure in basic customer service management exacerbated the issue, leading to a full-fledged class-action lawsuit. Furthermore, when the Department of Justice mandated an internal investigation, the company's lack of interest in conducting a thorough and unbiased research process became apparent.
Proper investigation and research skills were notably absent, resulting in questionable and unreliable results that further fueled the legal dispute. Instead of addressing the issue logically and resolving it effectively, Cracker Barrel's managerial negligence and disregard for ethical research practices intensified the accusations, creating a damaging narrative for the company. The Department of Justice, compelled by the inadequacy of Cracker Barrel's internal investigation, took matters into its own hands to determine the validity of the case and the integrity of the company.
The Cracker Barrel case serves as a cautionary tale, emphasizing the profound consequences of unethical business research. It underscores the necessity for companies to prioritize ethical considerations in their research practices, ensuring transparency, integrity, and accountability. The impact of flawed research methodologies goes beyond legal implications, affecting a company's reputation, customer trust, and overall sustainability.
As businesses navigate the complex landscape of research and decision-making, they must recognize the intrinsic link between ethical conduct and long-term success. By upholding ethical standards in research, companies not only protect themselves from legal repercussions but also foster a culture of trust and credibility. The lessons learned from the Cracker Barrel case should resonate across industries, encouraging a commitment to ethical business research practices for the collective benefit of companies and their stakeholders.
Ethics in Business Research: A Case Study on Cracker Barrel. (2016, Oct 20). Retrieved from https://studymoose.com/unethical-business-research-conduct-essay
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