McDonalds Case on Ethics


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McDonalds Case on Ethics

  1. 1. McEthics By Group – 2, Section - B Ashuthosh Gupta Ashwin Murali Avadhesh Kumar B U Deepankar Bangaru Beulah Bhaghat G Bhanujeet Choudhary
  2. 2. About McDonald’s • A multinational fast food giant that operates across 118 countries with 31000 restaurants serving 60 million customers a day. • It is the first and largest fast food chain in the world • Pioneered an innovative business model (franchise) in the fast food industry. • No of outlets: US - 18000+, UK – 1250+, France – 1200+, China – 1500+, India – 250+ • Known worldwide for their burgers (Big Mac) and French fries
  3. 3. Criticism against McDonald’s McLibel Case • • • • • • • • Allegations of unethical practices Criticized for serving fatty foods Exploiting children with their advertisements Cruelty to animals Antipathetic to unions Low wages to workers False advertisement of nutritious food Risked the health of most regular and long-term customers
  4. 4. Consequences of the McLibel Case • Massive International publicity • Publication of an acclaimed book and a TV programme against McDonald’s • A documentary film about the trial • McSpotlight Website
  5. 5. Problems in Europe • Resisted by local farmers’ union in France • Anti-Americanism due to Iraq war • Concern about health and nutrition – escalating rates of obesity • Failure to provide a balanced menu • Insufficient information on nutrition and guidance • Promoting ‘supersize’ portions • Box office success of anti-McDonald’s film ‘Supersize Me’ by Morgan Spurlock • Government regulations
  6. 6. Mc fights back • Dropped supersize options • Range of new healthy options on the menu • New advertising campaign – “McDonald’s. But not as you know it” • New menus sent to 17 million households in Europe • Nutritional labelling • Exercise and sports initiatives for young people – McDo Sports Tour, McDo Kids Iron Tour • Sponsored UEFA Euro 2008 Football Championships • Association with local football clubs across UK Continued…
  7. 7. Mc fights back • Long-term strategic realignment towards changing societal values and expectations • Commitment to serve Rainforest-grown coffee in UK restaurants • Used cooking oil reprocessed into biodiesel. This biodiesel used in their delivery trucks • McSpotlight website abandoned in 2005 • The fight back was successful – steady growth in profits • By 2009, Europe was the firm’s highest growth region
  8. 8. Looking East • Potential Markets in India and China – worth over $120 Billion • Problem of obesity in China • Consumers International’s Claim – Global brands take advantage of lax laws in Asian countries • Absence of nutritional information in their websites in China, Philippines and Hong Kong • Continuation of unethical practices once practiced in Europe – online kids’ zones targeting children with unhealthy food • Introduction of healthy corn soups in China, Vegetarian burger in India to appease the critics • Yet to replicate the European model
  9. 9. Points to ponder – the issue of Ethics • Reacting to the situation or really ethical? • Why wasn’t the European model replicated in Asia? • Are Asians as health conscious as Europeans? • Really committed to the promotion of a healthy lifestyle or just to appease the critics remains to be seen
  10. 10. Thank You