Unethical Case Study23/01/2016

Business ethicsBUS 330

Vannapha Huy

Ty Chea

Techly Seng

Sovanna Suos

……

……

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 processBuild customer loyalty Retain good employees Avoid legal problems

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 union

Unhealthy

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

ingredients

Stakeholders

Dir

ect

Customers( Adults,

Children...)

Ind

irect

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 childrenThe 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, 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 betterconsequences than alternatives. Ex. promotes human well-being:the happiness, health, dignity and more.

Utilitarianism

The utilitarian perspective would find this unethical whetherMcDonald’s have the good purpose or not. This is due to thenegative consequence, the public health issue.

Deontology

Utilitarianism

Deontology

Virtue

ethics

Deontology begins with the insight that as a matter of principle, weshould make some ethical decisions rather than consequences even ifit results in some bad consequences.

Deontology

If the means was really to help customers can afford food byselling the cheap food, then the act of serving the food would bemoral.

If the means was to serve no quality food that make people ill forprofit, than it would be unethical.

Virtue ethics

Utilitarianism

Deontology

Virtue ethicsvirtue ethics depends more on integrity and character of a personwho 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 servicethat 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.

While the current products causes health issues, the cooperation should reevaluate their ingredients.

practicing CSR social web model.

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,

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