Case Study: Cardone Industries: Chaplain Program

Abstract

Cardone Industries – Chaplain Program presents a decision situation where top management had to choose between cost reduction and preserving a visible representation of corporate culture. Over 20 years ago the company founder, Michael Cardone, had implemented a corporate chaplain program to enhance the “Cardone Factory Family” culture of the organization. Over the years, the chaplain service had expanded with the growth of the business to become much more than a religious support system. While the current staff of seven chaplains plus support staff had established several ethnic churches, they also assisted with basic employee needs including medical, social service support, financial, various governmental services, and domestic issues. The program supported benevolence funds, musical groups, family nights, cultural events, sporting activities, and employee recognition programs and awards. An outside consulting group spent 18 months evaluating the overall operations of Cardone Industries in the interest of making the company more competitive and better able to withstand the pressures of the market, competitors, suppliers, and economy with the objective of improving the financial viability of the organization. One of the first recommendations from the consulting group was for Cardone to save an annual cost of $600,000 by eliminating the Chaplain Program. Members of the top management team were both for and against the consultant’s recommendation. Sentiments ran high on both sides and current president Michael Cardone Jr. would have a difficult time reaching a decision.