Ronald McDonald House Charities, created by McDonald's, raises over $430 million worldwide to help seriously ill children and their families. Burger King, McDonald's largest rival, announced in 2007 that it would use humanely sourced meat and eggs, giving priority to suppliers using cage-free chickens and free-range pigs. Animal rights groups commended Burger King's decision, hoping other retailers would follow their more ethical practices.

1. Case 6 – McDonald vs Burger King
Ronald McDonald House Charities (RMHC) is a non-profit organization, created by
McDonald’s. The mission of the charitable organization is to “directly improve the
health and well-being of children”. Operating in about 50 countries, RMHC has raised
more than $430 million around the world to help seriously ill children and their families.
Burger King, the world’s second largest fast-food chain and McDonald’s largest rival,
announced it would use supplies of humanly sourced meat and eggs starting in 2007.
Burger King gives priority and better deals to suppliers that provide cage-free chickens
and free-range pigs. Animal rights groups commended the company’s decision, hoping
that other retailers and suppliers would follow the move.
a. Define the meaning of ethical business behavior in the context of the case
study.
b. Discuss with reference to the case study whether acting ethically can provide
McDonald’s and Burger King with commercial and competitive advantages.