Ethics Issues at KFC
Ethics Issues at KFC
Ethics Issues at KFC
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
Introduction
Business ethics are moral principles that guide the way a business behaves.
The same principles that determine an individuals 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
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. Sanders 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
Colonels 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 worlds 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 Colonels 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 Colonels 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.
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 worlds 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 KFCs Web site.
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 employees 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
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