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

Introduction

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

Businesses need ethics due to…

Main factor during the decision-making process

Overview on a chosen business

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

Why do we choose McDonald’s for our study?

Because…!!

• Developing Country

• Alert Cambodian people

• Healthy food

What are the unethical issues involved?

Case outline

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

Stakeholders

Dire

ctCustomers( Adults, Children...)

Indi

rect

Government Family Companies

Why is it an ethical issue?

Key ethical issues

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

So, how do we determine if they are moral or immoral?

Ethical frameworks

Utilitarianism

Deontology

Virtue ethics

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.

Recommendations

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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