The Business ethic of KFC and McDonald

Topics: Ethics, KFC, John Stuart Mill Pages: 7 (1604 words) Published: October 23, 2013

The Business ethic of KFC and McDonald
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
TABLE OF CONTENTS
   
   
The Business ethic of KFC and McDonald1
Executive Summary3
1 Introduction3
2 Comparation of KFC and McDonald’s practices4
3 Application of 4 relevant ethical theories6
3.1 The utilitarian approach6
3.2 The rights ethical approach7
3.3 The Justice ethical approach7
3.4 The virtue approach8
Conclusion8
References9
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
Executive Summary
   A company has its responsibilities to its consumers, its suppliers, its employees , its shareholders as well as the local community and society in general .This article I choose KFC and McDonald’s which both are Food and Beverage industry to analyse the business ethics base on ethical theories .    Business ethics means the application of ethical standards to the business behaviors . Business ethics has become an increasingly important part of this global conscience .(Freyne, 2009 ;Gilmartin, 2008) 1 Introduction

   Kentucky Fried Chicken ,as know as KFC, is the famous American chain fast food restaurant which was founded in 1952 by Colonel Harland Sanders .And He is also the logo of KFC . KFC is affiliated with Yum brands now and formed a strategic alliance with Pepsi , (some exceptions, such as South Korea, Japan sales Coca-Cola.) There were about 17000 stores by the end of 2012 .    Like KFC ,McDonald’s Plaza is also the world famous chain fast food Corporation which founded in Oakbrook,Illinois 1954.It has thirty thousand stores approximately around the world .Its main products are humburgs, fried chicken, aerated water, salad and so on. It stand for a kind of American life style in many counties .    

2 Comparation of KFC and McDonald’s practices
   These two companies are the world's most influential brand of fast food . Because they are competitors to each other ,they formed different strategies and concepts . As one of Marketing mix strategy , McDonald’s pricing according to the consumer perception of consumer perceived value ;KFC pricing refers to competitors’ price , the purpose lies in the market competition .The operation principle of KFC is launch new products constantly or redesign old products for consumer’s new taste .To McDonald’s ,only 4 words: clean, fast, quality, service ,every word has its detailed explanation and rules. In terms of these two aspects , I'm more inclined to McDonald’s .    But they also got some events violate consumer rights and interests which happened in recent years . For example:On July 4, 2010, US media reported that McDonald's chicken McNuggets, containing mud glue and chemical composition of oil or namely polydimethylsiloxane and TBHQ . In July 2011, the event of Kentucky Fried chicken used soybean milk powder to make soya-bean milk caused many dissatisfaction .    

   Table 1:
   
   Table 2
   
   
Source:“2013 world most ethical companies” http://ethisphere.com/worlds-most-ethical/wme-honorees/    
   From the table 1 and 2 , We get know that KFC and McDonald’s did’t Included in the 2013 world most ethical companies .    
   
   
   
   
   
   
   
   
3 Application of 4 relevant ethical theories
   Analysis of these two corporations will use 4 relevant ethical theories , they are utilitarian approach , rights ethical approach, Justice ethical approach and virtue approach .    
3.1 The utilitarian approach
   Utilitarianism, namely the utilitarian is a theory of moral philosophy .Advocating the pursuit of "Maximum Happiness” .Main philosopher are John Stuart Mill (John Stuart Mill), Jeremy Bentham (Jeremy Bentham) and so on .    The utilitarian approach means that promoting the most value of the whole while reducing the harm to fewest individual by using ethical actions...


References: [1] http://www.doc88.com/p-790227987315.html
[2]Held,V.(2006).The Ethics of care. Oxford Scholarship Online
[3]http://doc.mbalib.com/view/cebe76aac671305277c67823e7c0c97c.html
[4]http://en.wikipedia.org/wiki/Utilitarianism
[5]Derek Cho-Kwan Law, Leo Liu He,Business Ethics , 2011
[6]http://www.businessdictionary.com/definition/reactive-strategy.html
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