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Unethical Case Study23/01/2016
Business ethicsBUS 330
Vannapha HuyTy Chea
Techly Seng Sovanna Suos
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Introduction
Business Background
Case outline
Stakeholders
Key Ethical Issues
Ethical Analysis
Conclusion & Recommendations
Content
Ethics in general known as:
A system of moral principle
Concerned what is good for individuals and society
Business Ethics…
Refers to an application of a moral principle of conduct to the strategic and operational management of a businesses
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
Unethical Issues
Internal Unethical Issue
Lower than minimum wage
Prevent employees to
join labor unionUnhealthy ingredients
External Unethical Issue
Deceptive Marketing to
children
Using Charity as a Mask to
avoid Tax
Unhealthy ingredients
Too many calories
Not enough nutrition
Large amount of
sugarUnhealthy
fat
Highly processed
Banned ingredient
s
Too many calories
Not enough nutrition
Large amountof
added sugar
Unhealthy fat
Highly processed
Banned ingredients
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?
Why is it an ethical issue?
Because the products they are selling causing their consumers serious illness in the long run
Ethical analysis
The use of systematic methods of ethical examination, such as ETHICAL THEORY, in reasoning about moral problems.
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 for everyone, then the company may not be immoral. Bad quality control management v.s Greedy purpose towards the customers
Utilitarianism
Utilitarianism
Deontology
Virtue ethics
Utilitarian people make decisions that produce better consequences than alternatives. Examples of better consequences that promotes human well-being: the happiness, health, dignity and more.
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.
Deontology
Utilitarianism
Deontology
Virtue ethics
Deontology begins with the insight that as a matter of principle, we should make some ethical decisions rather than consequences even if it results in some bad consequences.
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.
Virtue ethics
Utilitarianism
Deontology
Virtue ethics
virtue ethics depends more on integrity and character of a person who is making the decision.
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.
Conclusion
Utilitarianism: Immoral ( consequences: public health issue) Deontology: Look at the mean Virtue ethics: Immoral
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.
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. It never be ethical enough to make profits at the expense of consumers’ health.
While the current products causes health issues, the cooperation should reevaluate their ingredients. Further, they should take actions to contribute in solving this problem by practicing CSR social web model. Introducing more healthy safe foods and calories count in menus and sponsoring medical researches related to heart disease, stroke and diabetes would be highly recommended.
Recommendation to the government
The government should encourage and enforce on a legislation and quality control of ingredients used in food products.
Recommendation for consumers
Consumers should be health conscious, manage their diets by balancing healthy food and do more exercises, for example, buying fresh vegetable and meat from the fresh-markets and self-cooking at home.
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