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those who are involved and who can limit access to resources the company seeks. For
example, if the company is going to adopt more liberal attitudes, then store managers
Teaching the Case
1 Week Prior
Distribute the case at least one lesson prior to when you will discuss it in class. Tell the
students that you intend to focus on several matters during the discussion, including:
How conservative attitudes among top managers can affect both business policy
and organizational culture.
That employees might perform well but violate company policies nonetheless,
especially when those policies address issues of personal lifestyle.
That customers’ attitudes might traditionally be aligned with those of
management but that when a business expands to new areas, those attitudes may
become more varied.
The public relations of a company can affect its performance, independent of the
satisfaction of customers’ preferences for its product.
The tension between the business case for or against diversity and other criteria
for deciding how to manage diversity.
First 30 Minutes of Class
Spend the first 10 minutes of class reviewing the main facts of the case, including a
description of the history of Cracker Barrel and its founder, its discriminatory
employment policies in respect to gay and lesbian personnel, the changing regional
nature of the firm, efforts to affect public perceptions of the company by gay and lesbian
rights advocates, and shareholders’ initiatives that were intended to change management
policy.
Next 20 Minutes of Class
Students should identify and discuss:
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The various and changing stakeholders in this case and their shared and
conflicting interests.
How interest groups and shareholders might or might not have leverage on a
company’s policies.
The various criteria that can come into play in making decisions about
employment policies, including firm performance, customer satisfaction, public
relations, and fairness to employees.
Summarize Students’ Responses
Ask students whether they would patronize, work at, or invest in Cracker Barrel
or not, and why.
Issues to consider:
While there are gay and lesbian individuals in every community, attitudes
toward gays and lesbians vary greatly by region.
If companies rely on customers’ attitudes to determine their policies, they might
need to have different policies in different markets.
Many personnel policies present both advantages and disadvantages to
companies.
Most investors care primarily about the profitability of a company, not the
specific ways in which those profits are achieved; for example, its personnel
policies.
Last 15 Minutes of Class
Conclude the discussion.
Make sure that students understand how personnel policies can create both advantages
and problems for a company. Make sure they understand the various criteria that can be
applied in judging the advisability of personnel policies.
Timeline of Events
1969 Dan Evins opens the first Cracker Barrel restaurant and gas station store in
Lebanon, Tennessee.
1974 As a result of the Arab oil embargo, Cracker Barrel exits the gasoline market to
focus just on restaurants.
1981 Cracker Barrel is sold to the public.
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1986 Cracker Barrel had 47 stores and net sales above $80 million.
1991 Cracker Barrel expressly prohibits the employment of gays and lesbians.
Activists organize boycotts and protests throughout the year. Pension funds that
held Cracker Barrel stock expressed concern and put pressure on management.
1999 Eleven states and the District of Columbia offered protections for gays and
lesbians. Cracker Barrel operated in six of those states.
1992 The chain continues to grow with 127 stores and $400 million in sales.
1996 Sales reach $1 billion from 260 stores.
2006 Cracker Barrel operates over 500 stores in 41 states.
Discussion Questions
1. What were the reasons for Cracker Barrel’s personnel policies? Could they have been
well intentioned?
2. What were the advantages and disadvantages to Cracker Barrel of actively banning
gay and lesbian employees?
3. How should the values of a customer base affect a company’s personnel policies?
What if those values vary by region?
4. What criteria should shareholders use in judging the performance of management?
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IN THE EYE OF THE PERFECT STORM:
CREATING ACCESSIBILITY—IBM, GM, AND CISCO
This teaching note was prepared by Dr. Harris Sondak (David Eccles School of Business;
University of Utah).
Purpose of the Case Study
1. To illustrate difficulties faced by people with disabilities.
2. To help students understand the complexities of defining disability and the rights of
people with disabilities.
3. To encourage students to question the factors that combine to create obstacles for people
with disabilities which prohibit them from achieving opportunities equal to other
Americans.
4. To provide examples of companies that have embraced the hiring and accommodation of
people with disabilities as part of their competitive human resources strategies.
Identifying the Business Problem
Many people in the United States are disabled or will become disabled at some time in
their lives. Business organizations often fail to hire people with disabilities, thereby
overlooking an important and potentially valuable source of human resources. The
organizational sources of this potential loss of productivity include managers’
stereotypes about people with disabilities, exaggerated expectations about the costs of
hiring people with disabilities, and unrealistic fears about the legal complications of
hiring people with disabilities. In addition, people with disabilities face the problem that
they may lose some of their public assistance, especially health benefits, if they become
employed, creating reluctance on their part to accept full employment.
Forecasting the Most Desirable Outcome
Companies should assess the advisability of hiring people with disabilities accurately.
Ideally, their analyses will be based on a clear understanding of the law, the full range of
advantages to the company of hiring people with disabilities, and an accurate estimate of
the costs of doing so. In addition, companies must tailor jobs and employment benefits
offered to people with disabilities to their needs, abilities, and the status of their current
disability benefits. Various third-party organizations can be consulted to help companies
and people with disabilities work together to create mutual opportunities.
Identifying the Critical Issues
1. Companies need to assess accurately the costs and benefits of hiring people with
disabilities. Commonly held misconceptions may lead managers to exaggerate the
potential costs of hiring people with disabilities as well as underestimate the potential
benefits of seeking employees from this sector of the labor market.
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2. Companies must be careful to develop human resources policies that do not undermine
the current public assistance benefits received by individuals with disabilities whom they
seek to hire.
3. Third party agencies, including a number of non-profit organizations, can be employed
to help train, select, and recruit people with disabilities.
4. Companies must meet the minimum legal requirements for accommodation for
employees and accessibility for the public. Going beyond these standards, however, can
be a competitive advantage for attracting both good employees and customers.
Stakeholder Perspectives Include:
People with Disabilities. Many people with disabilities seek to lead lives that are as
employees if given the chance. For example, the author recently overheard a state
legislator express surprise that a lobbyist with cerebral palsy really knew the issues
before the lawmakers; the lobbyist said in reply: “My body doesn’t work right, but
there’s nothing wrong with my mind.” In fact, the lobbyist had graduated with honors
from an internationally respected and leading university.
the job for which they are being recruited, nor do they need to give preference to people
with disabilities. However, they may not discriminate against people because they have a
disability. In fact, hiring people with disabilities may be in a manager’s interests. Many
managers actually rate their employees with disabilities higher on a number of job
performance related measures than their non-disabled employees. In addition, managers
Customers. Customers with or without disabilities may be impressed with an
organization that accommodates people with disabilities. On the other hand, customers,
too, may harbor misconceptions about or prejudice against people with disabilities.
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Shareholders. Shareholders are generally most concerned with the profitability of their
company. Hiring people with disabilities and comprehensively working to help them be
productive employees has worked well for major firms, including IBM, GM, and CISCO.
Possible Solutions to the Problem
1. One possible solution to the problem of reluctance to hire people with disabilities is for
employers to understand clearly the legal framework of the ADA and ensure that their
2. Going beyond the minimum requirements of the law, some companies have embraced
accessibility as a principle of competitive advantage. For example, the author once had a
3. To help determine the actual costs and benefits of hiring people with disabilities, most
states have created state-level commissions promoting the employment of people with
4. Third party organizations, including private organizations and agencies of state and
federal government, can facilitate the training and hiring of talented people with
disabilities. See, for example, the U.S. Department of Labor’s Office of Disability
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Explaining How to Communicate the Solution
Any organization must communicate its policies on hiring and accommodating people
with disabilities, especially if it seeks to use these policies as a competitive advantage. Its
human resources strategies must be congruent with its approach to welcoming people
Teaching the Case
1 Week Prior
Distribute the case at least one lesson prior to when you will discuss it in class. Tell the
students that you intend to focus on several matters during the discussion, including:
The economic challenges faced by people with disabilities.
The stereotypes and outright discrimination that undermine the efforts of people
with disabilities to be full and productive members of our society.
Legal requirements for accessibility and accommodation.
The potential costs and benefits of hiring people with disabilities and the need to
assess them accurately.
The role that third party organizations can play in increasing the opportunities
for people with disabilities and the organizations that hire them.
First 30 Minutes of Class
Spend the first 10 minutes of class reviewing the main facts of the case including the
convergence of three systems of discrimination and the strategies of IBM, GM, and
CISCO.
Next 20 Minutes of Class
Students should identify and discuss:
The various stakeholders in this case and their shared and conflicting interests.
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The sources of managers’ reluctance to hiring people with disabilities and ways
to ensure an accurate assessment of the costs and benefits of doing so.
How hiring people with disabilities can provide a competitive advantage to
Make sure that students understand the various challenges faced by people with
disabilities, the wide diversity among disabilities, and the stereotypes that harm people
with disabilities. In addition, be sure to discuss the economic incentives and disincentives
for companies to employ people with disabilities and for people with disabilities to seek
employment.
Timeline of Events
1918 Congress passes a law to promote the rehabilitation of disabled U.S. military veterans.
1924 Commonwealth of Virginia passes a law that allows for the forced sterilization of the
“mentally handicapped,” among others.
1927 The U.S. Supreme Court upholds the right of states to forcibly sterilize developmentally
disabled citizens.
1935 The Social Security Act provides for support of the blind and disabled children.
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1939 Nazi Germany begins a program of euthanasia to eliminate those deemed unworthy for
life; by the time the program is ended, more than 100,000 people are killed.
1951 Institute of Rehabilitation Medicine opens in New York.
1956 Social Security Disability Insurance program for disabled workers is established.
1968 The Architectural Barriers Act prohibits architectural barriers in all federal buildings.
1973 Congress passes the Rehabilitation Act mandating that federally funded programs must
be accessible.
1975 The Education for All Handicapped Children law is passed, giving disabled students the
right to attend public schools.
1976 The Federal Communications Commission reserves space for closed-captioning on
televisions.
1977 Demonstrations pressure the U.S. Health, Education and Welfare Departments to create
regulations for implementing the Rehabilitation Act.
1981 The Reagan administration begins an effort that eventually fails to rescind the
Rehabilitation Act.
1988 The Fair Housing Act amendments to the Rehabilitation Act prohibit housing
discrimination against people with disabilities.
1990 Passage of the Americans with Disabilities Act, mandating that local, state, and federal
governments and programs be accessible, that businesses with more than 15 employees
1997 Passage of the Individuals with Disabilities with Education Act that ensures free and
appropriate educational opportunities to children with disabilities.
1999 The Supreme Court decides that individuals with disabilities must be offered services in
the setting most integrated into their communities.
Source: http://courses.temple.edu/neighbor/ds/disabilityrightstimeline.htm
Discussion Questions
1. Why are people with disabilities at a disadvantage when compared to people without
disabilities? Why do you think this is still the case when the ADA was passed in 1990?
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2. What are the various provisions of the two most significant pieces of legislation for
people with disabilities: the ADA and the IDEA?
3. What can society in general and people with disabilities in particular do to change the
4. Why haven’t other companies followed the lead of those organizations, like IBM, that
