TABLE OF CONTENT
1.0 Acknowledgement 2
2.0 Introduction 3-4
3.0 objective 4
4.0 KFC Background 5-6
History 5
Internationalisation Process 5-6
KFC in Malaysia 6
5.0 Find out the
Problem 7-12
5.1 Chickens Abuse,
and the PETA 7-8
5.2 Health Problems,
'Fried' fast food 9-10
5.3 Protect Employee's
Health and Safety, 10
as Working Condition
5.4 Job
Satisfaction, as Working Condition 10-11
5.5 I-City Problems 11
5.6 GREENPEACE
Perspective 11-12
6.0 Analysis How the
Organization Handle The Issue 12-14
6.1 Launching Kentucky Grilled Chicken 12-13
6.2 PETA wants KFC to adopt the animal welfare program 13-14 developed by five members of
its own animal welfare board
6.3 KFC handle the I-City Problem 14
6.0 Determine the
Solution 15-16
6.1 Responsibilities to Take Care Their Employee 15
6.2 Operation Efficiently 15
6.3 Human Resource 16
7.0 Conclusion 17
8.0 Recommendation 18
9.0 References
19
10 Attachment 20-21
ACKNOWLEDGEMENT
First
of all, I’m so grateful to the Almighty God for establishing me to complete my
report which is in business ethics (MGMB313) subject.
I would like to express thank and
deepest appreciation to my lecturer, Madam Faiza Binti Haji Omar, who has the
attitude and the substance of a genius; she continually and convincingly
conveyed a spirit of an adventure in regard to my report, and an excitement in
regard to teaching. This report would not have been possible unless without his
guidance and persistent help in this dissertation.
I would also like to thank to my
parents for their unceasing encouragement and full support. They were so
understand by giving me space and time to complete my report as well. They also
support by money for me complete the report.
Lastly, i offer my regards and
blessings to all of those who supported me in any respect during the completion
of this report. I also place on record, my sense of gratitude to one and all
who, directly or indirectly, have lent their helping hand in this venture.
Introduction
Business ethics are moral principles
that guide the way a business behaves. The same principles that determine an
individual’s actions also apply to business. Acting in an ethical way involves
distinguishing between “right” and “wrong” and then making the “right” choice.
It is relatively easy to identify unethical business practices. For example,
companies should not use child labour. They should not unlawfully use copyrighted
materials and processes. They should not engage in corruption. However, it is
not always easy to create similar hard-and-fast definitions of good ethical
practice. A company must make a competitive return for its shareholders and
treat its employees fairly. A company also has wider responsibilities. It
should minimise any harm to the environment and work in ways that do not damage
the communities in which it operates. This is known as corporate social
responsibility. There are many ethical dilemmas that an organisation face and
one of the organisations which faces major dilemmas is the Kentucky Fried
Chicken. Firstly, the main objective of this report is to provide a discussion
to find out the problem. Secondly, evaluate the relative importance of these
dilemmas and how Kentucky Fried Chicken is currently dealing with them. Last
give recommendations and strategic options to Kentucky Fried Chicken.
The main purpose of this report is
to conduct an ethical analysis for KFC Corporation. The report examines main
ethical dilemmas facing KFC, specifically including the perspective of the
consumers, the suppliers, the employees and society as a whole. Although it is
the world's most popular chicken restaurant chain, KFC is currently
experiencing a number of ethical dilemmas. For instance, the dilemma between
consumers' need for healthy food and the reality of providing high-calorie
food, and the dilemmas concerning the relationship between KFC and its
suppliers, between KFC and its employees.
In
order to deal with these dilemmas, KFC strives to make adjustments according to
its consumers' preference and takes appropriate measures to establish win-win
relationships among the corporation, the suppliers and the employees. The
report considers KFC's best ethical practice to be its endeavour to perform its
social responsibilities. KFC actively launches the KFC Ray Education Foundation
to give financial support to educational causes and founds the Food and Health
Foundation to subsidize scientific researches and publicity and education
projects related to nutrition and health. In consideration of the fact that KFC
has given relatively unethical performance in advertising, several pieces of
suggestions are included in this report.
OBJECTIF
These
report focus on ethical issues at Kentucky Fried Chicken ( KFC) . They’re a lot
of questions that come out in mind to do a report about it. As a student of
Human Resource Management I study about business ethics so i choose Kentucky
Fried Chicken ( KFC) for do our report. In this report, i will know what kind
of ethics issues was happened at KFC, how KFC handle the ethics issues, and I
was given some recommendation to KFC how improve more to recover the ethics
issues.
In
this report you will able to know:
1) Ethics
issues at KFC.
2) Analysis
how KFC handle the ethics issues.
3) Determine
the solution.
Background Of Kentucky
Fried Chicken
History
Harland
Sanders, founder of the original Kentucky Fried Chicken, born in 1890, just
outside Henryville, Indiana. After a series of jobs, in the mid-1930s at the
age of forty, Colonel Sanders bought a service station, motel and cafe at
Corbin, a town in Kentucky. He began serving meals to travellers on the dining
table in the living quarters of his service station because he did not have a
restaurant. It is here that Sanders began experimenting with different
seasonings to flavour his chicken which travellers loved and for which he soon
became famous. He then moved across the street to a motel and restaurant, which
seated 142 people. During the next nine years he developed his secret recipe of
11 herbs and spices and the basic cooking technique which is still used today.
Sander’s fame grew. In 1939, his establishment was first listed in Duncan
Hines’ “Adventures in Good Eating”.
Internationalisation
Process
In
1952 the Colonel Harland Sanders begins actively franchising his chicken
business by traveling from town to town and cooking batches of chicken for
restaurant owners and employees. When the reaction was favourable The Colonel
awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake
agreement stipulates a payment of a nickel to Sanders for each chicken sold.
In
1957, Kentucky Fried Chicken first sold in buckets. During 1960 the Colonel’s
hard work on the road begins to pay off and there are 190 KFC franchisees and
400 franchise units in the U.S. and Canada.1964 Kentucky Fried Chicken has more
than 600 franchised outlets in the United States, Canada and the first overseas
outlet, in England. Later that year Sanders sells his interest in the U.S. Company
for $2 million to a group of investors headed by John Y. Brown Jr., future
governor of Kentucky. The Colonel remains a public spokesman for the company.
In 1966 the Kentucky Fried Chicken Corporation then goes public.
In
1971 more than 3,500 franchised and company-owned restaurants are in worldwide
operation when Heublein Inc. acquires KFC Corporation. In 1979 KFC cooks up 2.7
billion pieces of chicken. There are approximately 6,000 KFC restaurants doing
there operations worldwide.
Kentucky
Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. in 1982
(now RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds. In 1986
PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc. In 1997 PepsiCo, Inc.
announces the spin-off of its quick service restaurants KFC, Taco Bell and
Pizza Hut into Tricon Global Restaurants, Inc. Tricon Global Restaurants, Inc.,
the world’s largest restaurant company, in 2002 changes its corporate name to
YUM! Brands, Inc. In addition to KFC, the company owns A&W® All-American
Food® Restaurants, Long John Silvers®, Pizza Hut® and Taco Bell® restaurants.
In
2006 more than a billion of the Colonel’s “finger licking’ good” chicken
dinners are served annually in more than 80 countries and territories around
the world. In 2007 KFC proudly introduces a new recipe that keeps the Colonel’s
11 herbs and spices and finger-licking’ flavour, but contains Zero Grams of
Trans Fat per serving thanks to new cooking oil.
There
are over 14,000 KFC outlets in 105 countries and territories around the world.
And every day, nearly eight million customers are served around the world.
As
a global company with a diverse and ever-changing workforce, we face
significant challenges. For example, our rapid growth in emerging markets like
India and Russia requires us to adapt our policies to these markets, and to
learn from our new partners. Building a diverse foundation at all of our brands
gives us a competitive edge and helps us operate as a local business in
international markets
KFC in Malaysia
The first KFC restaurant was opened in 1973 on Jalan
Tunku Abdul Rahman. Today there are more than 500 KFC Restaurants nationwide
and still counting. Great tasting chicken has become synonymous with KFC and
has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed
a distinctive Malaysian personality of its own.
Find Out The Problem
1.1 Chickens Abuse, and the PETA
Every
year, KFC needs 700 million supplies of chickens for the entire world wide
restaurants. While KFC's claim that they “only deal with suppliers who promise
to maintain our high standards and commitment to animal welfare”. But about the
treatment of the chickens it buys, a proof of graphic evidence, a video was
taken by an investigator of People for the Ethical Treatment of Animals (PETA)
had showing that the chickens was purposely abused by the workers. The video
was taking in a slaughterhouse, at a Pilgrim's Pride plant in Moorefield West
Virginia, where the workers kicking live chickens like playing footballs,
thumping them into walls, apparently those workers do it just for fun. This
does not happens once, the investigation of PETA on KFC shows that there are so
many suppliers of KFC had committed into this behaviour. Only in United States
many suppliers have involved in, one of them is Tyson slaughterhouse. In the
slaughterhouse showed that birds purposely were burnt to death, were blown apart
by makeshift firecrackers, and broke their legs by the workers so that it can
be fit into slaughter-line shackles. Tyson is KFC's number one supplier.
Other
country, the most popular issue on the abuse by the supplier of KFC is happens
on India. Chickens was found overstuffed into awfully crowded warehouse plagued
with chicken carcasses, cruel breeding practices, sick and injured chickens but
never received any medical attention, and they suffering at the hands of cruel
workers who neglected to examine even minimal ethics of animal welfare. Animal
abusing can be defined as the most serious Ethical Dilemmas on KFC.
In
India, on August 20, 2003, a five-foot tall chicken complete with an ensemble
of feathers and beak hobbled on a pair of crutches outside Kentucky Fried
Chicken's (KFC) was kept in an Indian outlet in Bangalore. The chicken was
brought by PETA activists, who carried play cards reading, "Quit
India" and "Stop Playing Fowl". The chicken was placed at the
centre and a peaceful protest was held against the alleged ill treatment of
birds in KFC's poultry farms. Media persons were called to give the
demonstration a wide coverage
As
a result of widespread protest, in Canada PETA’s new animal welfare plan was
implemented in KFC’s supplier’s plants. According to the new plan, 100 per cent
of chicken purchases were to be done from suppliers that use
controlled-atmosphere killing (CAK).
PETA’s
protest is against the cruelty and ill-treatment towards KFC chicken. They do
not intend to overhaul KFC’s overall manufacturing process. Instead PETA urges
KFC to adopt animal welfare program developed by the five members of its own
(KFC) Animal Welfare Board and to adopt Controlled Atmosp here Killing (CAK).As
per PETA, The Pilgrim’s Pride poultry farm did not adhere to any animal welfare
standards. The chickens suffered intensely in the poultry farms before being slaughtered
as highlighted Belo.
KFC
are generally fatty food made with excessive oil and additives such as salt and
sugar, meaning a large amount of calorie is present. When customers consumed
too much fast food they might become obese and develop diseases such as
diabetes, high blood pressure, strokes, and heart related symptoms due to high
cholesterol from excessive fat. Customers may also consume excessive fast food
because it is cheap to buy in large quantity. Also, research has been done
proving it is more likely for people living near fast food branches to become
obese.
The chickens are slaughtered before
they are 6 weeks old. At the slaughter
house, chickens are hung upside down and transferred through conveyor belts to
the killing room fully conscious. Too many chickens are dumped from the crates
to the fast moving conveyor belt that caused the birds at the bottom to get
suffocated. Unable to manage the large in flow of chickens, the workers threw
away some chickens slamming them to the walls or floors. During the processing,
to remove feathers, the live chickens are thrown into scalding-hot water.
1.2 Health Problems, 'Fried' fast
food
Fried
is like almost everything in KFC, the main course from the menu in KFC is
actually fried chickens. Unlike any other fast food brand, common
one-McDonalds', which in their menu French fries is just a side dish. In the
past few years, KFC has been sued by the Centre for Science in the Public
Interest (CPSI), charged with the food contains “staggering sum” of trans-fat.
In one three-piece chicken combo meal contains 15 grams of trans-fat, which is
over the limit that a person should have in one week. CPSI (2006) through press
release said that “The class-action suit... asks that the court prohibit KFC
from using partially hydrogenated oil, or that at the very least, signs be
posted in KFC outlets notifying customers that many KFC foods are high in
trans-fat.” The suit was filed in Superior Court of the District of Columbia.
These
trans-fat is actually harming consumer's health, KFC as the world's most
popular chicken fast food chain, over 14,000 outlets around the world, with
more than 12 million customers eating their “fried” chickens every day. Just
imaging, their unethical behaviour has influenced widely against their
customers. It is a serious ethical dilemma which can be found in KFC.
In
contain of the recipe there are proved that in the contain of KFC chicken flour
their use monosodium glutamate (MSG). Monosodium glutamate is one of additional
teats that impress the food or became the food more teats. Monosodium glutamates
describe that, a flavour enhancer used in savoury foods, especially Asian
foods. It contains sodium, but only a third of the amount that you’d get from
the same amount of salt. MSG also includes glutamic acid (aka glutamate), an
amino acid that’s found naturally in foods like tomatoes, mushrooms and
soybeans and is the source of our fifth taste umami. In fact, we eat about 13
grams of natural glutamate a day on average, compared to only around half a
gram from MSG. besides that, MSG also have side effects it is. The symptoms
which MSG is suspected of causing include headaches, dry mouth, flushing,
tightening of facial muscles, numbness, tingling, chest pain, heart
palpitations, nausea and general weakness. Most are said to pass after a couple
of hours. There are also allegations, again without scientifically supported
evidence, of it being a contributory factor in asthma, migraine, Parkinson's,
Alzheimer's and depression. For instant, MSG also can cause that became hair
fall and skin cancer if taken more of MSG. Societies for Experimental Biology
recommended it should not be used by pregnant women, infants, children, women
of childbearing age, and individuals with affective disorders.
1.3 Protect Employee's Health and
Safety, as Working Condition
Every
year, there are more than 5000 workers are killed and over 3,000,000 are
seriously injured as a results of work accident in the world. Workplace hazard
always the main causes workers get hurts, include not only obvious categories
like mechanical injury or burns but also extremely heat and cold, skin
irritants or noisy machinery. In KFC's restaurant's kitchen, their workers
facing with deep fried machine, hot oven, cutting machine and bad air condition
every day. The Occupational Safety and Health Act (1994), is the most recent
legislation in Malaysia, to safe guard safety and health of works. KFC should
abide by the rules and this act, is ethical. When their employees feel save in
their work place, firm will have good reputation though.
For
examples, poor working in KFC slaughter house its may many
caused to employees. The caused by health and safety. Working at slaughter
house mostly never wear mask. This because, many employees get lots of disease.
1.4 Job Satisfaction, as Working
Condition
The
work of Manuel G. Velasques (1996) emphasis that the rational parts of the
organization put a high value on efficiency: All jobs and tasks are to be
designed so as to achieve the organization's goals as efficiently as possible.
When efficiency is achieved through specialization, the rational aspects of
organizations tend to incorporate highly specialized jobs. As we known, working
in a fast food restaurant is definitely bore with keep on repeating the same
jobs everyday with no exception. This leads to job dissatisfaction to the
workers, it will change their attitudes when they feel annoyed in doing their
works, this is also why some customers complaint on they got rude services in
the chain. Efficiency is achieved by understanding the workers motivational
patterns. Professor Abrahim Maslow cited in his research the 5 need factors,
for example security, social and esteem. This factors are ethical and enhances
productivity at KFC both local and internationally.
When
employees happy, they will work happily and then treat their customer better,
the golden rule is to recognize the differences is cultures and economic
development of the countries. To better value KFC, the fair trade concept is to
be utilized further to firms, community involvement, targeting should be the
code of practices in KFC.
1.5 I-City Problems
The
incident was happens in KFC I-City, Malaysia. This incident was happen on 6th
February 2012. The incident happens is because the customer has been waiting
for more than 1 hour but when comes to his turn, there is NO MORE fried chicken
for the customers. The customer requests the management to apologize but the
Store Manager do nothing for that matter. The issues happen when the worker
shouted: “kalau mau makan, buat sendiri lah BABI.” which give means “do it with
your own if you want to eat, pig.” The KFC I-City workers attack customers by
using bad descriptions words to the customers cause this fight happen.
Employees have to be avoiding to do attack action to the customers. As a fast
food restaurant which sells service, KFC workers have to understand customers’
right.
1.6 GREENPEACE Perspective
Another
unethical issue raised against KFC is its link with the destruction of the
Amazon Rainforest. In May, 2006 Greenpeace volunteers came up to enlighten the
whole world about the mass deforestation in Amazon rainforest caused by KFC. Greenpeace
has come up with a term for KFC as “KFC – Amazon Criminal”.
According
to Greenpeace, KFC is fuelling the destruction of Amazon by selling cheap
chicken fen on soya grown on deforested land. Green peace investigation clearly
traced that large area of rain forest has been destroyed by direct sales of
cheap soya via Cargill by KFC , in order to sell billions of chickens to
its customer every year, at low cost. The demand of soya fed for its chicken by
KFC to Cargill has led to this unethical activity, which is affecting the
global climate. Rainforest that covered 14% of earths land area has reduced to
6% due to deforestation, which clearly shows the high overall impact of
business practices. Greenpeace wants KFC and Cargill to ensure that animal feed
they buy does not contribute to destruction of Amazon and that none of their
soya products are genetically engineer.
Greenpeace
on Wednesday accused global fast food chain KFC of using paper packaging made
using wood from Indonesian rainforests which it said was endangering the
habitat of the Sumatran tiger. The environmental group
said the chain's trademark chicken buckets and French fry boxes contained
timber products from Asia Pulp & Paper (APP), which it described as the
country's "notorious forest destroyer". To illustrate their cause,
activists placed a giant KFC French fry holder depicting company founder
Colonel Sanders holding a chainsaw in his hand and the words "KFC junking
the jungle" written below on deforested peat land in Rokan Hilir, Riau
province on Sumatra. Two activists dressed in tiger costumes lay
"dead" in front of the packaging
and held a banner saying "Stop APP destroying forest tiger home".
Greenpeace
urged KFC to suspend its contracts with APP and implement a zero deforestation
policy across its whole supply chain. KFC is one of the most popular fast food
brands in Indonesia with more than 400 stores across the country. Greenpeace
has in recent years waged highly successful campaigns against APP, prompting
more than a dozen major international companies, such as Barbie-maker Mattel,
KFC and Wal-Mart, to drop paper packaging contracts with APP. Deforestation
accounts for 70 per cent of carbon emissions in Indonesia, the world's
third-biggest emitter, according to UN data. Estimates of the number of
Sumatran tigers remaining in the world range from 300 to 400. Several die each
year as a result of traps, poaching or other human actions.
Analysis How The
Organization Handle The Issue
2.1 Launching Kentucky Grilled
Chicken
According
to this trans-fat issue, a spokesperson from KFC Laurie Schalow (2007) issued a
statement saying that: “We take health and safety issues very seriously. We
provide a variety of menu choices and provide nutrition information, including
trans-fat values, on our website and in our restaurants so consumers can make
informed choices before they purchase our products. Our company is reviewing
alternative oil options, but there are a number of factors to consider
including maintaining KFC's unique taste and flavour of Colonel Sanders'
Original Recipe, supply availability and transportation, among others.” This
has proven that KFC has initiative to take action on the issue, but yet, still
have other 'profits relates' concerns, such as in the statement stated, they
afraid they might lost the unique taste thus losing customers at the same time,
and it sure will decrease the annual profits.
KFC
has taken a big step in their chain's history by launching the Kentucky Grilled
Chicken. In this combo meal, contains only 395 calories, even lower than a
subway Italian B.M.T sandwich which contains 450 calories. And the main point
is, guarantee no trans-fat. KFC promote their new Grilled Chicken on the famous
show Oprah Winfrey's daytime talk show, by offering free meal using print out
coupon on the related site. The action taken was proved that KFC has strong
initiative to promote both Fried and Grilled Chicken in their chains, as people
now is really concern and sensitive on what they are eating especially on fast
food meals.
2.2 PETA wants KFC to adopt the
animal welfare program developed by five members of its own animal welfare
board.
PETA wants KFC to adopt the animal welfare program developed by five
members of its own animal welfare board. These advisors are
the world’s top poultry experts; they advise the meat industry in North America
and Europe and believe that KFC can and should adopt these measures.
Firstly,
adopt the “Animal Care Standards” program. This would lower the amount of
ammonia in the air in factory farms, improve the living spaces and lighting in
chicken sheds, prohibit the intentional starving of breeding birds, and ensure
that birds are provided with mental and physical stimulation.
Secondly,
Switch to controlled-atmosphere killing (CAK). This would prevent live birds in
slaughterhouses from being abused by workers, having their throats slit, or
being scalded while they are still conscious. CAK would also improve conditions
for workers and decrease contamination levels in chickens’ flesh.
Thirdly,
Switch to mechanized chicken gathering. This would drastically reduce the
number of broken bones and painful bruising that birds endure when factory-farm
workers carelessly throw them into transport crates.
Fourthly,
Breed for health rather than rapid growth, and stop feeding drugs to chickens.
This would reduce the rate at which birds suffer painful, crippling diseases
and injuries, such as broken legs, heart attacks, and lung failures.
Lastly, make all welfare standards transparent
and verifiable. This would simply ensure that the animal welfare program is
being adhered to through announced and unannounced independent audits (the
results of which must be made available to the public through KFC’s Web site.
2.3 KFC handles the I-City Problem
Based
on the cases of KFC I-City fight which happened on 6th of February 2012, the
employees fight with the customer. Although the customers scold the employees,
the employees should not start the fight with the customers. The employees have
to understand the reason of the customer to get angry, and understand that as
the staff who work under service, customer right come first. The fault is from
the KFC but not the customers. It is unfair for the customers for waiting 1
hour and get nothing at last without apologizes. Several KFC staff were seen
attempting to hold their colleague back after a heated exchange but the staff
managed to land a punch on Danny Ng. The employees give a punch to the
customers on customers face is recorded by a people and upload into YouTube,
world largest official video sites. The management of the food chain and Ng
lodged separate police reports on the matter two days later.
The
human resources department, representing KFC Malaysia has met and offered their
apologies to Danny Ng Chee Fei, who was assaulted by a kitchen crew member at
I-City branch in Shah Alam. The fast food chain’s deputy president Alan
Au met Ng and his family to extend his regrets and apology during a short
meeting at Wisma KFC in Jalan Sultan Ismail. The victim, Danny Ng accepted the
apology, saying KFC reacted appropriately to the incident. Ng was also given a
voucher by KFC but declined to reveal its value.
Determine The Solution
3.1 Responsibilities to Take Care
Their Employee
KFC should have the responsibilities to
take care their employees' health and safety in their workplace, what employer
can and should do is offer higher wages to compensate the risk measure by
different position. A better one to ensure their workers
against unknown accident that might happen anytime, employer should provide
them with suitable insurance programs. A little bit costly, but a good one is
advise KFC to form a special team, to collect information, researching on the
health and safety issue on the working environment which where their workers
facing every day. Then come out with the results together with solution and
steps recommendations information available to all KFC employees around the
world.
Excessive job specialization is undesirable
for other reasons than that it places unjust burdens on workers. There is also
considerable evidence that it does not contribute to efficiency. Research
findings have demonstrated that there is a link-age between worker productivity
and programs that improve the quality of work life for workers by giving
workers greater involvement in and control over a variety work tasks.
3.2 Operation Efficiently
KFC
should make the operation efficiently like held parties involved customer and
workers quarterly, or an outstanding idea such as choose the best worker in
different country and offer them to have exchange colleague (similar with
exchange student) to work in other country's outlet with a duration one to
three months with fully allowanced by company, this sure will motivated workers
to do hard work on their working days.
Besides
that, The stakeholders' management should include the improvement in
Communications, where there is possible setback the 'whistle blowing' ethic
should be applied as a strategic option whereas the recommendations would be to
set up a panel to do constant analysis on different options as the Marketing,
and Operations issues, for instance the coordination activities in Service
Management, Public Relation and Advertising techniques. The ethical theory of
Technological or Consequentialist states the “end justify the means”. This
further is depended by Kants ethics of duty. The consequentialism is that human
welfare is best served by moral responsibilities
3.3 Human Resource
The
ethics of human resource management consists mainly of ethical issues which
emerge around the employer-employee relationship. Generally speaking, the ideal
relationship between employers and employees is one that is firmly grounded in
mutual trust and respect. A harmonious relationship contributes to an
environment of cooperation and efficiency. Training programs for employees, on
the other hand, offer chances of further development for both the employees
themselves and the organization. However, this is, in many organizations, not
the case. Sorts of exploitation, power and authority relationship, as well as
reluctance on training expenditures are common unethical phenomenon.
Adhering
to the concept of people-oriented, KFC has been at the forefront of offering
training programs to its employees. According to statistics, for duration of
more than 20 years, KFC has launched numerous personnel training programs, with
combined participants of over 200,000 and total training investments amounting
to 2,400,000,000. So, even when the organization, under the pressure of the
financial crisis, is forced to cut the number of staffs, the employees who are
made laid-off could land on new jobs with comparative ease as a result of high
qualifications that they have benefited from the various training programs that
they have received from their former employers. Besides, all employees in KFC
are granted equal opportunities to grow, develop and promote. Their progress
depends largely on their abilities and performances
Conclusion
In
a word, it can be said that business ethical is very important to a business
organization. It can help a business organization easily earning the respect of
clients and win general acclaim. Contrary to the belief that social
responsibility undermines businesses' profitability goal, this actually help in
generating profit through customer loyalty and good company image. For Kentucky
Fried Chicken, the KFC Company must be able to ensure that the products that
they offer are healthy and nutritional, so that it can make sure that Kentucky
Fried Chicken can gain customer trust, loyalty, respect and the corporate image
will be protected and developed.
The main purpose of this report is to
conduct an ethical analysis for KFC Corporation. The report examines main
ethical dilemmas facing KFC, specifically including the perspective of the
consumers, the suppliers, the employees and society as a whole. Although it is
the world's most popular chicken restaurant chain, KFC is currently
experiencing a number of ethical dilemmas. For instance, the dilemma between
consumers' need for healthy food and the reality of providing high-calorie
food, and the dilemmas concerning the relationship between KFC and its
suppliers, between KFC and its employees.
In
order to deal with these dilemmas, KFC strives to make adjustments according to
its consumers' preference and takes appropriate measures to establish win-win
relationships among the corporation, the suppliers and the employees. The
report considers KFC's best ethical practice to be its endeavour to perform its
social responsibilities. KFC actively launches the KFC Ray Education Foundation
to give financial support to educational causes and founds the Food and Health
Foundation to subsidize scientific researches and publicity and education
projects related to nutrition and health. In consideration of the fact that KFC
has given relatively unethical performance in advertising, several pieces of
suggestions are included in this report
RECOMMENDATION
In this section, the report will put
forward suggestions concerning the issue of ethics in advertising as KFC, shown
in the above description, has failed to give ethical performance in this area.
In recent years, KFC has constantly been subject to criticisms for its somewhat
deceptive advertisements. Making a business of offering mainly fired food which
is high in calorie, it is obviously not honest to claim any slim benefit within
its products. When designing and presenting advertisements, it is advisable
that KFC should treat consumers with a sense of responsibility and provide an
accurate and comprehensive account of its products. Such behaviours as
half-truth, ambiguity, exaggeration and deception should be completely avoided
in advertisements. It would be fine to inform consumers with nutrition and
calorie information. Ideally, KFC should seek to inform consumers fully and
truthfully, using non manipulative and persuasive techniques to sell its
products
KFC should meet all legal business
requirements to enhance their survival competence. The Department for
Environment, Food and Rural Affairs recommends a maximum stocking density of
34 kg around 30 chickens per square meter, and say that in circumstances
where beak trimming needs to be carried out to prevent the birds injuring each
other, only one third of the beak should be trimmed measured from the tip towards
the entrance of the nostrils.
Lastly, for my
opinion, human resources department have to take all responsibilities. Human
resources department should provide staff training program to the employees to
standardize the employee’s behaviour and attitudes on works. KFC should also
standardize the supplier code of conduct. Punishment should be taken to all the
employees and suppliers who obey the policies that set by KFC.
References
1
http://www.economy-point.org/k/kentucky-fried-chicken.html
2.http://simple.wikipedia.org/wiki/Kentucky_Fried_Chicke
3. Boatright, J.
R. (2008) Ethics and the
Conduct of Business, New York: Prentice Hall
4.Jennings,
M. M. (2008) Business Ethics: Case Studies and Selected Readings, Ohio:
South-Western College Pub.
5. Kidd, Deanna.
Mondey, April 23, 2012. http://blog.partnersforyourhealth.com/Blog/bid/85971/Shocking-Fast-Food-Statistics-You-Should-Know>
7. Plaisance, P. L. (2008) Media Ethics: Key Principles for
Responsible Practice, CA: Sage Publications, Inc.
8. Trevino, L. K and Nelson, K. A.
(2005) Managing Business
Ethics: Straight Talk About How To Do It Right, New York: John
Wiley & Sons
9. Biodun
D, Biodun A. A spice or poison? Is monosodium glutamate safe for human
consumption? National Concord Newspaper. 1993;4:5
12. Boatright, 2008. Networked
Governance, Transnational Business and the Law
13.
W.L. Boatright, M.S. Jahan, B.M. Walters, A.F. Miller, D. Cui, E.J.
Hustedt andQ. Lei, 2008, Journal of
Food Science, Volume 73,
Issue 3, pages C222–C226,
Attachment
Picture of ethics
problem at i-city kfc.
1.
Picture of peta
3.slaughter
house
No comments:
Post a Comment