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UNIT 38
Understanding Business Ethics

BTEC National Diploma in Business

- Company background -
McDonald’s

Title: LTD
Business sector: Fast- Food Chain
Mission statement: The Company’s mission statement is to “be our customers’ favourite place and way to eat”. It is interesting to note that this is the organisation mission statement, but there are also variants on this in the subsidiary companies, for example, the UK operations has the mission statement to “be the UK’s best fast service restaurant experience”.

McDonald’s first originated in 1954 in the United States of America. Ray Kroc, a seller of the Multimixer Milkshake machines, found that brothers Richard and Maurice (Dick and Mac) McDonald were using eight of his high-tech Multimixers in their San Bernardino, California restaurant. Ray Kroc went to investigate why so many Multimixers were bought. When Ray arrived at the restaurant he was amazed by the speed and quality of the food that the small McDonald’s business was selling so well. Ray Kroc pitched the idea of opening up several restaurants to the brothers Dick and Mac McDonald, and they accepted. Ray Kroc opened the first restaurant in 1955 located in Des Plaines Illinois. Today, McDonald's is one of the largest and most recognised fast food retailers in the world, with more than 32,000 local restaurants serving more than 60 million people in 117 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women as franchises. McDonald's focused on increasing sales at existing locations by renovating stores, expanding menu options and extending store hours. Internationally, McDonald's expanded aggressively, opting to franchise rather than operate its new locations, providing new income with little overhead. McDonald’s sells hamburgers/sandwiches; French fries, desserts, soft drinks, and breakfast. The company has also recently released a new line of different vegetarian meals, such as various types of wraps and salads. McDonald’s has also recently expanded the brand name by adding the McCafe’ which sells various types of sandwiches and coffee’s.

UNIT INTRODUCTION

This unit aims to help us, the students, to understand better the business ethics meaning. This assignment requires us to research the meanings of ethics in business world by using a case study of an organisation and apply all the information’s to that organisation. The organisation I chose to help me complete this assignment is McDonalds and I will apply the business ethics to it.

The word ‘ethics’ comes from the Greek word ‘ethikos’, meaning ‘character’. Ethics also mean society morals. The simplest definition for the word ‘ethics’ it is choosing between right and wrong actions. The business ethics refers at the actions of individuals in an organisation. It is most clearly expressed in the written and unwritten values and codes of principles that an organisation adopts. Companies who have a well established ethics are more likely to enjoy long-term successes against those who do business for profit only.

WE DO NOT ACT RIGHTLY BECAUSE WE HAVE VIRTUE OR EXCELLENCE,
BUT WE RATHER HAVE THOSE BECAUSE WE HAVE ACTED RIGHTLY.
(Aristotle ~Greek philosopher and scientist~)

COMMERCE IS A HEAVEN, WHOSE SUN IS TRUSTWORTHINESS
AND WHOSE MOON IS TRUTHFULNESS.
(Baha’u’llah ~ Persian nobleman and founder of the Baha’i religion~)

P1
BUSINESS ETHICS
Business ethics is the study of conflict, conflict between economics and values, between competition, commerce and capitalism and between morality, integrity and responsibility. People are definitely morally responsible to follow a code of ethics and should never cheat each other. Parts of this code of ethics should be honesty, integrity, fidelity, charity, responsibility and self-discipline. This ethics should apply both, to a person buying something and the person...
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