Chipotle's Business Model

The organization’s business model satisfies the five interrelated factors for assessing ethical decisions, which effectively defines it as a socially responsible organization. They do this by supporting local family-farms through the promotion of local and organic food items on their menu over other unsustainable menu items. In doing so, the community benefits by keeping family-farms functional and productive, which in turn, keep locals employed while also keeping its customers and consumers happy and healthy.
Perhaps the most potent question that gives doubt to the organization’s social responsibility is if it can still serve the interests of its stakeholders, which is also a factor to be considered in an ethical decision. When it focuses primarily on its commitment to the local family-farms, can Chipotle still provide much needed profit-margins to sustain its growth? This is perhaps best answered by the 20% growth statistic. In terms of Wall Street standards, it may be small but the bottom-line is that it’s still an improvement on year-on-year comparison which is enough to sustain necessary growth for the business. …show more content…
It is important to point out that the negative externalities of the high-fat and high-calorie items in the menu is actually internalized by the same item’s high-nutrition due to the raw material’s freshness and lack of chemical preservatives. This cannot be said of the same high-fat and high-calorie menu items among the restaurant’s competitors. The farm-to-table scheme significantly reduces the amount of potentially harmful preservatives and chemicals put on the raw