Corporate Social Responsibility of Pizza Hut Inc

Posted by Matthew Harvey on Oct-17-2018

1. CSR at Pizza Hut Inc

CSR s embedded in the business philosophy of Pizza Hut Inc. At Pizza Hut Inc, the business operations and processes are designed in a way that they do not become an obstacle or a burden in the way of people’s and the environment’s wellbeing. At the same time, these processes and designs boost business growth. The systematic design of operations at Pizza Hut Inc enables the management to ensure that the organization achieves sustainable business growth by reducing attached risk factors as well as through community building goals and ambitions. Pizza Hut Inc strives to increase its social impact and influence on the environment and in people’s lives- by focusing on three big goals. 

1.1. Values at Pizza Hut Inc

Pizza Hut Inc works for CSR through the CSV approach. This is made easier to incorporate in the company systems because of the core values practised at Pizza Hut Inc. These are:

Respect – for every one

  • Trust
  • Integrity
  • Honesty
  • Accountability

1.2. CSR goals at Pizza Hut Inc

1.2.1. Improving livings standards for communities through increasing employment opportunities

Pizza Hut Inc believes in working for the people, and working with the people. With the growth of the business across the world, Pizza Hut Inc ensures that it creates new employment and livelihood opportunities for millions across the globe. This is done through direct employment and contracts, as well as through inclusive business opportunities.

1.2.2. Enhancing the health and wellbeing of communities engaging with Pizza Hut Inc

Pizza Hut Inc works with communities at large and aims to help them become healthier and happier. Pizza Hut Inc provides nutritional boosting and support to communities where it runs operations, as well as to other communities living in regions marked below poverty. Additionally, Pizza Hut Inc also produces and distributes health and hygiene products to enhance the wellbeing of its customers along with the various communities it has engaged with.

1.2.3. Reducing environmental footprint

Pizza Hut Inc works towards reducing its environmental footprint by ensuring that it allows the legislation regarding carbon production and release. Also, Pizza Hut Inc works towards designing operational processes that reduce water and land pollution. All products manufactured and distributed by Pizza Hut Inc come with a disposal method to reduce wastage, and increase recycling. 

2. Creating shared value (CSV) at Pizza Hut Inc

Pizza Hut Inc works hard to create value for not only the shareholders but for the society at large. This approach of creating shared value has enabled impressive business growth for Pizza Hut Inc, as well as allowing its expansion regionally as well as in its product portfolio. Through creating shared value, Pizza Hut Inc brings value to the lives of communities where it operates by influencing those aspects of the society which intersect and coincide with the business offerings and business operations.

2.1. How to maximize value creation?

Through the CSV approach, Pizza Hut Inc can create the most value in the following aspects:

2.1.1. Nutrition

Pizza Hut Inc focuses on investing in the health of communities by focusing on nutrition and medication, as well as on sanitation and hygiene. The primary focus remains on ensuring health safety for children and infants.

2.1.2. Water

Pizza Hut Inc works hard with third parties and external as well as internal support systems to ensure that its operations do not cause water damage. In addition, it administers all its internal sewage plants to dispose of waste optimally without risking water life.

2.1.3. Air cleansing

Pizza Hut Inc maintains carbon units as per legislation in all its operations across the globe. The company also takes responsibility for ensuring that all its industrial sites and operations are placed away from residential areas to reduce maximum exposure of plant operations to the public.

2.1.4. Rural development

 Pizza Hut Inc strives to develop communities where it operates. This includes rural communities and settlements from where Pizza Hut Inc gets its raw materials and inputs as well as labour. Pizza Hut Inc created varied employment and livelihood opportunities for these communities to help them raise their living standards and quality of life.

3. Commitments made by Pizza Hut Inc

Commitments at the Pizza Hut Inc have helped shape its CSR and CSV approach based on multiple trends from across the globe. These commitments have helped Pizza Hut Inc maintain focus in giving back to the community as well as in developing a more sustainable environment and workplace. Commitments are the long term goals that Pizza Hut Inc wants to fulfil and achieve in the following different aspects:

3.1. For individuals and families

3.1.1. Living healthier lives

For families and communities, the CSV approach of Pizza Hut Inc focuses on helping individuals attain a balance between healthy nutrition and physical exercise as a means of a healthier lifestyle and healthy living. With today’s work style and busy schedules, this is quite a challenge. Pizza Hut Inc works intending to develop programs and products to help communities manage time well and stay motivated towards increasing their wellbeing.

3.1.2. Having nutritional knowledge

Pizza Hut Inc works with the long term aspiration of enhancing the lifestyles of communities. The company plans to do it by sharing information regarding nutritional facts, and by raising awareness of nutritional intake. The company does this by not only making the nutritional value available for its own manufactured products but also develops programs and information sharing networks to help individuals learn about healthy eating and make informed dietary decisions.

3.2. For communities

3.2.1. Rural development

Pizza Hut Inc works towards developing rural communities-especially where it is operational and present. The company engages not only in employment creation but also infrastructure development and education deployment programs to help communities improve their living standards. Pizza Hut Inc also conducts vocational training programs frequently.

3.2.2. Promoting diversity

Pizza Hut Inc also works towards inclusion through its diversity programs. The company has designed programs and policies to ensure the inclusion of all community groups in the employment cycle. In addition, the company also conducts training and skill enhancement sessions for all community groups –including disabled and special persons

3.3. For the planet

3.3.1. Protecting water

Pizza Hut Inc understands the need for protecting water resources across the globe and is also an active fighter for water preservation. With the high scarcity of clean drinking water, Pizza Hut Inc works and strives to provide communities with clean drinking water through having installed filter plants

3.3.2. Protecting natural resources

 With increased urbanization, natural landscapes of forests and grasslands have quickly turned into urban centres. Pizza Hut Inc ensures that all its operational sites are designed in a way that they do not harm or risk the natural ecosystem. In addition, the company works towards protecting the environment by building green spaces.

3.3.3. Safeguarding the environment

The operations of Pizza Hut Inc, like other players in the industry, are being affected by the climatic changes, and the weather alterations. To fight this change, and to safeguard the environment, Pizza Hut Inc works towards creating safe green spaces through high rate plantations. This is to ensure environmental sustainability and enrichment of the ecosystem.

4. Value chain at Pizza Hut Inc and CSR

At Pizza Hut Inc, SCR is embedded in the company DNA. Pizza Hut Inc ensures that the CSV approach is integrated into all operations and systems at the company, including THE VALUE CHAIN.

4.1. Supply chain

4.1.1. Rural development

Pizza Hut Inc allies with farmers and other partners to obtain the high quality raw material. In doing so, the company ensures that it invests in the wellbeing in the development of its partners and related communities through educational opportunities as well as various training programs and infrastructure development.

4.1.2. Responsible sourcing

Pizza Hut Inc participates in responsible sourcing. All its partners throughout the supply chain and for raw materials have been tested against set ethical backgrounds to ensure that all raw sources and materials are obtained from partners doing sustainable business.

4.1.3. Animal welfare

In all its sourcing, Pizza Hut Inc ensures that no animals are harmed. Pizza Hut Inc makes sure that all animals are fed high quality fodder, and that they are kept in a clean and safe environment. In addition, Pizza Hut Inc also provides safe breeding grounds for animals and regularly authorizes veterinary check-ups for all animals in partner farms.

4.1.4. Human rights

Pizza Hut Inc is also particularly careful to ensure that all human rights are upheld in its business operations. This includes no child labour, and inclusive diversity, amongst other things. Also, the business operations of Pizza Hut Inc also include high dependence on local workers for labor and management – making sure all local and global human rights are followed thoroughly.

4.2. Manufacturing

4.2.1. Water, sanitation and hygiene

During the manufacturing process and value additions, Pizza Hut Inc maintains an emphasis on water, sanitation and hygiene. All plants and manufacturing units operated by Pizza Hut Inc have an authorized sanitation system in place which ensures minimal water wastage. Besides, all industrial waste is disposed of off through authorized channels only – ensuring that no natural water body and water source is harmed or polluted.

4.2.2. Natural resource stewardship

Pizza Hut Inc is also an active pioneer of natural resource stewardship. Pizza Hut Inc has devised ways to ensure that natural resources are sustainably used for industrial operations, and are not damaged during business processes. Pizza Hut Inc shares this knowledge publicly for the overall welfare of the environment and the planet.

4.2.3. Women empowerment

During its manufacturing process, the Pizza Hut Inc also ensures to employ women labour in various managerial and operational level jobs. These women are usually from local communities and are trained for new skill development and enhancement. In doing so, Pizza Hut Inc ensures that women are equipped with the confidence and decision making abilities s that they advance not only in their professional but also in their personal and social lives.

4.3. Retail and consumers

4.3.1. Responsible marketing and influence

Pizza Hut Inc makes sure to use ethical means of marketing its products. This means not only does it disseminate rightful information and data regarding the company, but also makes sure that it does not use unethical appeals in its marketing communication.

4.3.2. Marketing to children

Pizza Hut Inc is also careful in its marketing to children so that it is not exploitative. Rather, marketing to children is done through influencing adults towards the products offered by Pizza Hut Inc.

4.3.3. Product Safety

Pizza Hut Inc ensures product safety in consumption at all times. This is done not only through mentioning nutritional value and facts but also through a clear statement of manufacturing dates and batches. This is to make sure that consumers are aware of the product quality and life cycle. Also, the company mentions clear ways and processes of disposing of the products to ensure that the environment is sustained and not harmed.

5. Working towards achieving sustainable goals 

 The CSR and CSV approach at Pizza Hut Inc is closely guided by the sustainable development goals chalked out by the United Nations. Through working on the attainment of the SDGs, Pizza Hut Inc, and many other companies work together to create a peaceful and harmonious future that has sustainable resources and environment.    

Through connecting Pizza Hut Inc’s goals and commitments with the SDGs, the company has created avenues of channelling a positive impact on society through its operations and business as a whole.

5.1. No poverty

  • Pizza Hut Inc creates opportunities for skill enhancement and vocational training
  • Pizza Hut Inc also provides equal employment opportunities to all labours from the local communities
  • Pizza Hut Inc promotes and supports small business ventures through inclusive business support and funding – especially for women who are micro-entrepreneurs in the community

5.2. Zero hunger

  • Pizza Hut Inc works towards implementing a model of less food wastage and food loss – in the manufacturing as well as the supply chain process
  • Pizza Hut Inc provides subsidized products in communities that are living below the poverty line, as well as in communities where it is operational and has industrial units and sites
  • Pizza Hut Inc has developed recycling plants in local communities to ensure that there is no food wasted during consumption, and it is recycled into other products needed for a sustainable environment

5.3. Clean water and sanitation

  • Pizza Hut Inc strives to ensure high water efficiency and water sustainability in all business operations and processes
  • Pizza Hut Inc advocates and also internally implements positive water policies
  • Infrastructure developed by Pizza Hut Inc in different rural communities and settlements ensures authorized sewage networks and lines to avoid dumping in freshwater reserves

5.4. Life on land

  • Pizza Hut Inc works towards establishing the green supply chain
  • Pizza Hut Inc ensures that no Green spaces are destroyed for its business and industrial purposes, and also works towards creating healthy green spaces through numerous plantations
  • Pizza Hut Inc places a high emphasis on maintaining regular health check-ups for all community members – free of cost, and also focuses on animal welfare for farmers

5.5. Good health and well being

  • Pizza Hut Inc works towards improving the living standards and quality of life of communities it engages with
  • For farmers, Pizza Hut Inc has also improved farm economics
  • Pizza Hut Inc works towards protecting the children in the supply chain processes, as well as creates diverse livelihood opportunities for adults

5.6. Quality education

  • Pizza Hut Inc provides a hands-on learning opportunity for young adults from local communities through internship opportunities
  • Pizza Hut Inc also sponsors various scholarship programs for different grade levels in communities where it is operations
  • Pizza Hut Inc has inaugurated primary schools in three different regions where it has operations – in rural settlements – as a step towards achieving quality education for all.

6. Partnerships and collaborations for a greater positive impact

6.1. United Nations Global Impact

The Pizza Hut Inc works with the United Nations through the united nation global compact (UNGC) avenue. Pizza Hut Inc has close and successful collaborations with UNGC based on the commonality of goals and values, as well as short term sustainable plans for environmental wellbeing. Collaboration with UNGC is two way for Pizza Hut Inc:

  • It helps Pizza Hut Inc strengthen its integration of the CSV approach, and its various aspects and channels. Working with UNGC allows the Pizza Hut Inc to redesign and improve its operations to ensure that all systems are ethically sound and sustainable
  •  Working with UNGC allows Pizza Hut Inc to help in whatever way possible, towards the attainment of the SDGs developed and defined by the UN. By being partners with UNGC, Pizza Hut Inc ensures that it's business operations and practices, as well as external engagements, work towards accomplishing the defined SDGs.

6.2. International Federation of Red Cross and Red Crescent Societies (IFRC)

Pizza Hut Inc has collaborated and worked with IFRC in different regions of Africa for more than a decade – striving towards improving water sanitation and hygiene issues. The company has worked tirelessly to help provide communities with safe drinking water. The efforts of Pizza Hut Inc have been tied, especially with first communities that reside in crop and local farms, as well as for communities who live near bottled water plants in different African regions.

7. Accounting and CSR at Pizza Hut Inc

CSR is also very evident in the accounting practices at Pizza Hut Inc. Incorporation of CSR at all fronts and in all departments of the organization has helped Pizza Hut Inc achieve a distinctive competitive edge, and has also improved its image and standing amongst consumers as ab active advocate of sustainable living and sustainable consumption.

The overall organizational CSR at Pizza Hut Inc has been achieved in large because of its emphasis on incorporating CSR at the base level functions – such as that of accounting

7.1. Accounting Principles at Pizza Hut Inc

Pizza Hut Inc follows the international standard and policies in its accounting principles. The company has in-house trained and qualified individuals from each region where it operates, along with managerial support from the headquarters for developing and auditing accounting principles and accounting activities in the business. All activities and processes, as well as accounting systems, are vetted for local and international legislations attached, and ensure to follow an ethically built framework that is within the legal boundaries.

7.2. Governance structure at Pizza Hut Inc

All managerial levels at Pizza Hut Inc, including the strategic leaders, are supervised by governing internal bodies. The strategic leadership is supervised by the board of directors, while other managerial levels are supervised for their performance internally by other managerial groups and levels. The purpose of governance at Pizza Hut Inc Is to ensure that the company is in line with its CSV approach at all times and that all business operations and decisions are made in perspective of the company’s value of sustainable living.

7.3. External advisory partners

To ensure that all practices at Pizza Hut Inc are ethical, and followed as per international benchmarks and expectations, the Pizza Hut Inc also contracts with a third party, external advisors. These advisors audit and vet the company systems, processes, and accounting numbers to make sure that everything is in line with the expectations, and the business model.

8. Finance and CSR at Pizza Hut Inc

It is interesting to note that while CSR activities and engagements help <?=$title?> improve its image and standing amongst the public and other stakeholders, and help it build credibility and trust, it also results in improved financial position and performance.  

8.1. Financing opportunities

Pizza Hut Inc finds higher opportunities for financing its projects because of its engagement in various CSR activities. This is because the company faces lesser financial constraints because of its improved image ad standing. Moreover, it is also now easier for Pizza Hut Inc to secure finances for funding new projects and ideas.

8.2. Higher investment opportunities

When firms like Pizza Hut Inc perform and engage in CSR activities, they include them and mention them clearly in the annual report and other official company documents. This increases the overall transparency for Pizza Hut Inc and communicates values of commitment, trust, and passion. 

 As a result, it attracts new investments from local as well as international investors for business expansion and business operation enhancement. With higher transparency, potential investors feel less doubtful and less fearful about investing in Pizza Hut Inc. 

8.3. Improved stakeholder engagement

CSR engagement by Pizza Hut Inc in various aspects, and on various platforms has resulted largely because of higher participation, engagement and encouragement by the stakeholders. This active engagement by stakeholders and shareholders alike has convinced strategic managers for Pizza Hut Inc to develop a long-form and a futuristic strategy. This has been important for Pizza Hut Inc for resource allocation and contracting and planning with the right outlook and resources in perspective. 

9. References

Cole, G., 2003. Strategic Management. Boston: Cengage Learning EMEA.

Gerlach, A., 2003. Sustainable Entrepreneurship and Innovation. University of Leeds, s.n.

Hill, C. & Jones, G., 2007. Strategic Management: An Integrated Approach. Boston: Cengage Learning.

King, D. & Lawley, S., 2016. Organizational Behaviour. Oxford: Oxford University Press.

Kotler, P. & Keller, K., 2009. Marketing Management. New Jersey: Prentice Hall.

Martinez-Ferrero, J. & García-Sánchez, I., 2015. Is corporate social responsibility an entrenchment strategy? Evidence in stakeholder protection environments.. Rev. Manag. Sci. , Volume 9, p. 89–114.

Mazurkiewicz, P., n.d. Corporate Environmental Responsibility: Is a common CSR framework possible?. s.l.:World Bank

McWilliams, A. & Siegel, D., 2001. Corporate social responsibility: A theory of the firm perspective. Academy of Management Review, 26(1), p. 117–127.

Perez, A. & Rodríguez del Bosque, I., 2014. The role of CSR in the corporate identity of banking service providers. Journal of Business Ethics, 108(2), pp. 145-166.

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