This document summarizes an unethical case study about McDonald's. It provides background on McDonald's history and business. It outlines key unethical issues like paying employees low wages, using deceptive child marketing, and providing unhealthy food ingredients. It analyzes the issues through utilitarianism, deontology, and virtue ethics frameworks and determines McDonald's is acting immorally. Recommendations include McDonald's reevaluating ingredients and the government enforcing food quality laws.
I. Introduction
Define ethics, ethics in business and the important of ethics in business context
II. Background of the business
Introduce to McDonald’s
III. Case Outline
The case of unhealthy ingredients
IV. Stakeholder (Direct and indirect)
The people affected by the issue directly and indirectly
V. Key Ethical Issue
Consequences from this issue
VI. Ethical Analysis
Ethical analysis on alternative reasons behind the occurrence of the issue
VII. Recommendation
Our comments and suggestions to McDonald’s , the US government and consumers
Case Study of the world's leading fast-food restaurant chain McDonald's. References: Marketing Management by Kotler. Created by Kandukuri Sai Omkar during a marketing internship under Prof. Sameer Mathur
McDonald’s is a large corporation in the fast food industry.
They have been around since 1955 when Ray Kroc started the chain of McDonalds. They have been growing ever since.
The majority of the restaurants are owned through franchises.
Criticism against McDonald’s- Allegations of unethical practices
Criticized for serving fatty foods
Exploiting children with their advertisements
Cruelty to animals
Antipathetic to unions
Low wages to workers
I. Introduction
Define ethics, ethics in business and the important of ethics in business context
II. Background of the business
Introduce to McDonald’s
III. Case Outline
The case of unhealthy ingredients
IV. Stakeholder (Direct and indirect)
The people affected by the issue directly and indirectly
V. Key Ethical Issue
Consequences from this issue
VI. Ethical Analysis
Ethical analysis on alternative reasons behind the occurrence of the issue
VII. Recommendation
Our comments and suggestions to McDonald’s , the US government and consumers
Case Study of the world's leading fast-food restaurant chain McDonald's. References: Marketing Management by Kotler. Created by Kandukuri Sai Omkar during a marketing internship under Prof. Sameer Mathur
McDonald’s is a large corporation in the fast food industry.
They have been around since 1955 when Ray Kroc started the chain of McDonalds. They have been growing ever since.
The majority of the restaurants are owned through franchises.
Criticism against McDonald’s- Allegations of unethical practices
Criticized for serving fatty foods
Exploiting children with their advertisements
Cruelty to animals
Antipathetic to unions
Low wages to workers
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11. Business background
Founded in 1940 by McDonald’s family with the name of McDonald's BBQ
Early products: burger, hot dogs…etc
Renamed to McDonald’s in 1948
Today’s menu includes chicken, salad, snack, desserts, coffee…
Currently serves 36, 000 locations with about 69 million customers over 100 countries
16. What are the unethical issues involved?
Case outline
17. Unethical Issues
Internal Unethical
Issue
Lower than minimum
wage
Prevent employees
to join labor union
Unhealthy
ingredients
External Unethical
Issue
Deceptive Marketing
to children
Using Charity as a
Mask to avoid Tax
22. McDonald’s Food
-too many calories, not enough nutrition-added
sugar & unhealthy fat- & highly processed
Consumers’ health:
-poor, overweight, obesity
-heart disease, diabetes & stroke
- Can no longer work
Companies in fast food sector:
-loses customers: people feel unsecure & switch
-this market may become less dynamic, less
profit, hire fewer staffs, unemployment rate.Their families
-lower incomes & saving
-higher expenses ( treatments)
-early labor force entry of their children
The company he works for loses a (good)
employee
Community & nation:
Income, welfare, happiness & healthiness
decline
Why is it an ethical issue?
23. Why is it an ethical issue?
Because the products they are selling causing their consumers
serious illness in the long run
24.
25. Ethical analysis
The use of systematic methods of ethical examination, such as ETHICAL THEORY, in reasoning about
moral problems.
26. We think…it depends on their real purpose
If the purpose is to make more money by putting people well-being at risk for profit, it is
immoral.
If the corporation’s purpose is to make food affordable and/or solve the need of the
short-eating-time, then the company may not be immoral.
Bad quality control management v.s Greedy purpose towards the customers
27. So, how do we determine if they are
moral or immoral?
31. Utilitarianism
The utilitarian perspective would find this unethical whether
McDonald’s have the good purpose or not. This is due to the
negative consequence, the public health issue.
33. Deontology
If the means was really to help customers can afford food by
selling the cheap food, then the act of serving the food would be
moral.
If the means was to serve no quality food that make people ill for
profit, than it would be unethical.
35. Virtue ethics
The managements and employees are responsible for maximizing profit for
their company, yet by providing harmful food, according to virtue ethics,
they are not moral of doing so. They did not act of what should have to be
done with integrity.
37. We believe that It is immoral for any business to serve a product or service
that may cause harm and at the expense of the society’s health and welfare.
McDonald’s is clearly at fault for the responsibility of producing and
maintaining a safe product to their customers.
39. Recommendation to the corporation
Given that the cooperation operating in food industry, food safety should
be integrated into the company credo, value statement and code of
conduct.
While the current products causes health issues, the cooperation should
reevaluate their ingredients.
practicing CSR social web model.
40. Recommendation to the government
The government should encourage and enforce on a legislation and quality
control of ingredients used in food products.
How much profit they make annually? McDonald's' yearly recorded revenue was $27.45 billion. So, on average that's 75.21 million per day
Highly processed= not decompose as natural. Diabetes= a disorder of the metabolism causing excessive thirst and the production of large amounts of urine.
As identify by the center for disease control and prevention, the expense on obesity-related medical costs was $147 billion. The responsible for losing pproductivity cased from these disease is $69 dollars.
Reference.MD
Brnefit more than disadv
In the short run, it may look as if we receive benefits to our life yet, ( lifestyle, save time, delicious…) it is worse off in the long run.
Look at the mean and draw for conclusion
In the short run, it may look as if we receive benefits to our life yet, ( lifestyle, save time, delicious…) it is worse off in the long run.