The Nonmarket Environment of McDonald’s
1. Characterize the four I’s.
Obesity. The house passed an act called Personal Responsibility in Food Consumptions act, and dubbed the cheeseburger bill. It protects food and restaurants from obesity lawsuits. Interest in obesity issue increased after reports done by Centers for Disease Control Prevention estimated deaths from obesity are around 400,000. Trial lawyers became excited to use this niche. The restaurant and food industries argued that obesity is a personal response and lobbied congress for protection from lawsuits.
Meal and Menu Nutrition Information: Meal Education and labeling Act in the House and the Senate were introduced. The act required to name of the food on the menu, the calories, grams of saturated fat plus trans fat, and milligrams of sodium contained in a serving of the food. This act was passed after a man named Morgan Spurlock chased after McDonald’s with his documentary targeting them.
Advertisement: Advertising to children were big concerns now, as McDonalds promoted their logo on toys, provided meals at some schools, and when movies came out they had the same characters toy in the happy meal.
Acrylamide: A substance, which causes cancer called acrylamide, was found in carbohydrates that were cooked in high temperature. The emphasis came especially to McDonalds French fries. But other researchers found out that it would require lots of amount of fries to eating at once would meet the cancers requirement. However, the Safe Drinking Water and Toxic enforcing act required a public notice about the substance.
Antibiotics: McDonalds developed a policy based on the principle that all users of antibiotics, including those who supervise use in animals and those who supervise use in humans, must work to sustain the long-term efficacy of antibiotics for human and veterinary medicine.
Animal Welfare: People for the Ethical Treatment of Animals and other animal welfare groups over the treatment of food animals targeted McDonalds. They set requirements for its beef suppliers, including minimum space standards for cattle in feedlots. Suppliers: McDonalds developed Code of Conduct for Suppliers. The code covered practices pertaining to the use of prison and forced labor, child labor, working hours, compensation, nondiscrimination, and the workplace environment.
Franchises in Brazil
Center for Disease Control and Prevention
Competitive Enterprise Institute
Center for Science in the Public Interest
People of the Ethical Treatment of Animals
Center for Disease Control and Prevention found out the number of deaths caused by obesity in February 2004. The Surgeon General estimated that health care costs resulting from obesity. Economists in return argue that obesity is caused by many different factors, not just fast food. Trial lawyers sought new mass tort after hearing the estimated health care cost from Surgeon General. Researchers from Sweden find acrylic in carbohydrate foods, which are cooked at high temperature, especially fries. FDA approves the Swedish researchers; on the other hand Steven Milloy proves that it is unlikely to get cancer from a small amount of fries.
PETA targets McDonalds for their treatment of animal. Further USDA hires Dr. Temple for further inspection to find negative answers. McDonalds complied with the doctors results and set standard for the middlemen.
2. What is the time frame of each issue?
Awareness about obesity concerns – 2000
Awareness intensifies – 2004
House passes the Personal Responsibility in Food consumption act – 2004 Cheeseburger bill introduced in 23 state legislators – Mid 2004 Launches healthy meal sets – April...
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