Food Service Management

Unit Title: Food
Service Management
Unit Number: 25
Unit Level: Level 5
Presentation by:
Yili Zhao
y.zhao@nelsoncollege.ac.uk
Recap of P 4
Managing human capital and resources in operations:
Service levels and types versus brand expectations and
strategy
Staffing levels and costs management, efficient rota
management for seasonality, utilising skills and competencies
The use of Belbin Team roles and skills assessments and
development for staff
Property and resource maintenance processes:
Food service facilities to maintain
On-going refurbishment to maintain and project a public
image
Repairs scheduling through peaks and troughs
Staffing and roles in maintenance
Internal and external providers, buy versus lease options,
return on investment (ROI)
Learning Outcomes
• Learning Outcome to be covered:
LO3:Explore the importance of ethical management for overall
business success
•Pass Criterion P5， M3, D2:
•P5:Importance of Corporate Social Responsibility (CSR) and
environmental awareness in food services
and Impact of ethical practices
By The End Of Today, You Will:
Assessment Criteria (P5):
• Corporate Social Responsibility (CSR)
• Environmental awareness
• CSR and stakeholders
3.1 Defining concepts of Corporate Social Responsibility
(CSR)
“The responsibility of an organization for the impacts of
its decisions and activities on society and the environment,
through transparent and ethical behaviour that:
• contributes to sustainable development, including the
health and welfare of society;
• takes into account the expectations of stakeholders
• is in compliance with applicable law and consistent with
international norms of behaviour; and
• •is integrated throughout the organization and practiced
in its relationships.”
Make it simple CSR is a drive that focuses on cheering
companies to understand the effect of their businesses on
communities, together with stakeholders and the
surrounding. It is a business tactic that is aimed at adding
value to sustainable growth, by delivering economic,
social and ecological views for all stakeholders.
What is Corporate Social Responsibility?
CSR can be defined as the accommodation of corporate behaviour
to society’s values and expectations.
Some examples of CSR
• Starbucks: has an initiative to provide a million coffee
trees to farmers as a partner in Conservation
International’s Sustainable Coffee Challenge. In its
stores, they plans to hire 10,000 refugees across 75
countries in the next five years, plus 25,000 by 2025.
• Coca-Cola: has donated more than £650 million to
causes prioritizing women’s empowerment, access to
clean drinking water, and the development of
disadvantaged youth.
Four approaches of CSR
1. Obstructive
2. Defensive
3. Accommodating
4. Proactive
Obstructive -fight all the way
Defensive – do only what is legally required
Accommodating –accept ethical responsibility
Proactive –take social initiatives
Obstructive
• A company that takes an obstructive stance toward social
responsibility attempts to defend its economic priorities
by blocking any attempts to point out the company’s lack
of social responsibility.
• They are more concerned about profits than CSR.
• Some people view obstructive businesses as immoral
since they may exploit their employees, pollute natural
lands or deceive customers.
• When faced with specific social demands, obstructive
companies often deny any wrongdoing and may even
use obstacles to deliberately delay or divert investigation
of their practices.
Defensive
• These companies may consider themselves neutral, and
they make profits a more important motive than
performing actions in a socially responsible way.
• These companies make a point of following the law to
ensure that others cannot take legal action against them.
• For example, a company may create more waste than
necessary, but it will remove the waste in a legal method
rather than dumping it illegally.
Accommodating
• An accommodating company does not attempt to hide its
actions and remains open about why it takes specific
actions.
• For example, it may decrease its creation of waste,
source products that are not tested on animals and pay its
employees a fair wage.
• The company would keep its records open to the public.
Though these companies are often socially responsible,
they may change their policies in response to criticism.
Proactive
• Instead of reacting to criticism, a proactive company
attempts to remain ahead of the curve when it comes to
social responsibility.
• It may make ethics part of its mission statement and
attempt to avoid any harm to the environment or its
employees.
• A proactive company may go out of its way to institute
new recycling programs, give all of its employees a
living wage and benefits, and donate a portion of its
profits to charity.
There are various forms of CSR, such as:
• Eco-friendly
• Fair Trade
• Use of organic produce
• Local producers/suppliers
• Transparency in practices
Eco-friendly CSR
Environmental CSR aims to reduce any damaging effects on
the environment from your business’ processes. Activities may
focus on:
• energy use
• water use
• waste management
• recycling
• emissions
• eco-friendly office and business travel policies
• Some of these are significant from both environmental and
financial point of view.
Fair Trade CSR
• Fair trade ‘is a social movement whose stated goal is to
help producers in developing countries achieve
better trading conditions and to promote sustainability.
• One of the biggest examples of a company that has
adopted fair trade products is Starbucks Coffee, with
fair-trade certified coffee beans, ensuring farmers can
fair pay for their products.
Use of organic produce CSR
These days, the demand for organic food is
such that it is produced in large quantities and
the social aspects have been set aside and
emphasis is placed on the environmental
aspects of production.
Consumers buy organic food for the perceived
environmental and health benefits.
Organic farming is now big business and the
price premiums that farmers can charge are an
incentive for conventional farmers to convert
their farms to organic.
Local producers/suppliers CSR
• Consumers in the UK who wish to support local
producers are once again heading to their local farmers’
markets.
• The stalls have changed in recent years, they are laden
with organic, free range, GM (genetic modification)free,
and of course regionally branded food.
• The consumer has to pay a premium for this food,
because it is produced and marketed in small quantities.
• However, there is a strong feel good factor involved in
buying food directly from the farmer and farmers’
markets are set for a comeback.
Transparency in practices CSR
Transparency is a necessary condition for CSR.
• It is about the ability of the receiver to have full access
to the information he wants, not just the information the
sender is willing to provide.
• In this context, transparency in practice includes the
organization being upfront and visible about the actions
it takes, and whether those actions are consistent with its
values.
Class Activity –Discussion
1. what is your opinion of
Fair Trade CSR
2. Why to Local
producers/suppliers and
why they are important?
3.2 Impact of ethical practices
What is a Stakeholder?
A stakeholder is either an individual, group or
organization who is impacted by the outcome of a project.
They have an interest in the success of the project, and can
be within or outside the organization that is sponsoring the
project. Stakeholders can have a positive or negative
influence on the project.
How does CSR influence stakeholders?
• Example of stakeholders in a Food service business are:
competitors, suppliers, customers, owners and
employees
• Stakeholders have a relatively important role in an
organisation’s CSR initiatives.
• Most companies now are open toward new relationships
with stakeholders and they welcome more initiatives
from the stakeholders
Business ethics
• Business ethics is the study of business situations,
activities, and decisions where issues of right and wrong
are addressed
• Cambridge dictionary defines ethics as “relating to
beliefs about what is morally right, and wrong”.
Thus, business ethics can be defined as those beliefs that
influences a company in its interaction with entities inside
and outside the company. It is a conscious effort to treat
people and companies with respect and establish a positive
working environment.
The effects of ethical practices in business can benefit a
company financially and they can also help a company
gain the elements it needs to grow.
Examples of ethical issues in business
Examples of ethical practices
• There are lots of ethical practices companies abide by to
maintain good corporate image.
• Here are some important business ethics that companies
across market sectors strive to abide by:
• Fairness to employees, suppliers and consumers
• Transparency
• Maintaining safe workplaces
• Advertising products fairly
• Protecting consumers’ privacy
• Providing equal career opportunities for all employees and job
applicants
• Ecologically sustainable practices
The impact Of CSR on staff retention
CSR will help to improve the working environment in
many aspects. Effective CSR can help to enhance the
sense of belonging in employees, improved skills and
motivation, better productivity, lower rate of attrition and
thus lead to higher job satisfaction and increased in
retention rate.
The impact Of CSR on image
CSR, perceived service quality and brand image are
significant drivers of corporate reputation. Corporate
reputation is positively affected by the CSR activities and
the quality of services perceived by the customer. Thus,
companies may work on conducting more CSR activities
to draw the attention towards their brand.
The impact Of CSR on repeat business
CSR positively affects customers only if its activities are
persuasive and customers consider the company to have
sincere intentions. It can increase trust and build
relationships between the company and its customers.
Customer loyalty
The impact Of CSR on business longevity
The link between the performance of a company and its
longevity is obvious. Indeed, only high-performing firms
over a long period are able to overcome an evolving
environment, the 3risks of market and crisis.
The impact Of CSR on brand power/strength
Power brands means:
They are key drivers of economic values of a corporation.
Brand power transforms a plain product into an economic
entity worth many times more than its content. The
essence of power brand lies in transforming the value of
product to the higher end that is unleashing a branding
wave. Power brands determine the market value of a
business proposition.
6 Important Characteristics of Power Brands /strength
1. Brands determine the market value of a business
corporation
2. Brands familiarity and esteem underlie power brands
3. Power brands transform the value of product to the
higher end
4. Power brands are the basis of consumer relationship
5. Power brands have value differentiation
6. Power brands attract consumers and secure purchases
CSR vs Power Brands
Companies who embrace Corporate Social Responsibility
(CSR) as a key pillar in their operational strategy
strengthen their brand. In today’s market, consumers
increasingly require more from companies than a product
or service that works as advertised. They expect
companies to positively impact the environment, society,
and communities in which they operate to gain consumer
trust and loyalty.
Next Week’s lesson Learning points
P6 :
Review of management practices versus best practice
Any Question?
Reference:
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• HILL, A. and HILL, T. (2012) Operations Management. 3rd ed.
Hampshire: Palgrave Macmillan.
• PAYNE-PALCIO, J. and THEIS, M. (2016) Foodservice
Management: Principles and Practices. 13th ed. Harlow: Pearson.
• REYNOLDS, D. and McCLUSKY, K. (2013) Foodservice
Management Fundamentals. Chichester: John Wiley & Sons Inc.