Business Ethics of Kfc

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BUSINESS ETHICS 2011 Report

Sunderland Business School Undergraduate Programs
Name: Lanny Chew Jun Kheong
Identification Number: 880328-52-5707
Student ID: 109129662/1
Tel. Number: 016-8515159
E-mail: lannicjk@hotmail.com
Study Centre: SEGi College Sarawak
Module: Business Ethics
Code: UGB210
Module Tutor: Ms. Adeline
Academic Year: 2011

EXECUTIVE SUMMARY
This report was produced as an audit report providing a ‘snapshot’ of KFC’s business ethics. First, the author started with the ethical dilemma of KFC which include poor quality products, animal abuse and poor working conditions. Identification of ethical dilemmas is important where people can know about the ugly truths that KFC was practicing. The report is followed with a discussion of the importance of the ethical dilemma of KFC and actions taken by KFC to solve the problems. Under this section the relevant theories such as utilitarianism, egoism, fairness are clearly explain with real examples in this report. Although there are pros and cons, KFC has also practice best practices. This third section covered up a few values such as hope, love and caring that KFC is practicing by participating in Corporate Social Responsibility (CSR) and established code of conduct. Even though action has been taken, it also cannot solve the dilemma. So, the author has offer recommendation for KFC as reference. This report was ended with a conclusion.

CONTENT: PAGE: ASSIGNMENT TITLE PAGE i
EXECUTIVE SUMMARY ii
CONTENT iii 1.0 INTRODUCTION 1

1.1COMPANY PROFILE 1
2.0 ETHICAL DILEMMAS 2
2.1 POOR QUALITY PRODUCTS 2
2.2 ANIMAL ABUSE 4
2.3 POOR WORKING CONDITIONS 4
3.0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC 5
3.1 PRODUCTS’ QUALITY IMPROVEMENT 5
3.2 ANIMAL WELFARE ISSUES 7 3.3 ESTABLISH UNION 9
4.0 KFC BEST PRACTISES AND VALUES 11
4.1 CORPORATE SOCIAL RESPONSIBILITY (CSR) 11
4.2 ESTABLISH SUPPLIER CODE OF CONDUCT 12
5.0 RECOMMENDATION 13
5.1 GO FOR ORGANIC 13

6.0 CONCLUSION 14
APPENDIX 1 15
APPENDIX 2 21
LIST OF REFERENCES 24

1.0 INTRODUCTION
This report was produced to analyze the business ethics of Kentucky Fried Chicken (KFC). First, the report started with a brief description on the company background. Next, it is continued with identification of the ethical dilemmas - poor quality products, animal abuse and poor working condition of KFC, provided from stakeholder analysis and examples from their history. After that, the report moved on to the importance of the mentioned ethical dilemmas and how KFC is dealing with it. The actions taken are product quality improvement, animal welfare issues and establish union. This included the application of the various ethical theories. Then, it is continued with the good side of KFC when the analysis was done on KFC best practices and values that KFC are practicing. It included Corporate Social Value (CSR) where they offered ‘Projek Penyayang KFC’ in Malaysia and Colonel’s Scholar Program, practicing the value of hope and love; and established supplier code of conduct by practicing the value of justice. Further, the author put on suitable recommendations for KFC such as Go for Organic, with the hope that the plan recommended can help KFC in expanding their business towards a brighter future. Lastly, this report was closed up with a...
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