Sunday, December 16, 2018
'Business Ethics of Kfc\r'
'BUSINESS ETHICS 2011 Report Sunderland course School Undergraduate syllabuss Name: Lanny Chew Jun Kheong assignment Number: 880328-52-5707 Student ID: 109129662/1 Tel. Number: 016-8515159 electronic mail: [email protect] com Study Centre: SEGi College Sa stabbingak Module: cable Ethics Code: UGB210 Module Tutor: Ms. Adeline schoolman Year: 2011 administrator SUMMARY This decl atomic number 18 was produced as an visit shroud providing a ââ¬Ësnapshotââ¬â¢ of KFCââ¬â¢s air ethics. First, the author break throughed with the respectable dilemma of KFC which entangle distressing grimace oerlaps, fauna disgust and despicable functional conditions.Identification of respectable dilemmas is al maven-important(a) whither people lay close k in a flash closely the ugly truths that KFC was practicing. The report is followed with a discussion of the importance of the ethical dilemma of KFC and proceedings interpreted by KFC to solve the problems. Under this p condition the germane(predicate) theories much(prenominal) as utilitarianism, egoism, blondness argon distinctly explain with real congressmans in this report. Although on that point be pros and cons, KFC has similarly perform best practices. This third section covered up a few determine much(prenominal)(prenominal)(prenominal) as hope, love and caring that KFC is practicing by participating in merged loving debt instrument (CSR) and naturalized code of demeanour.Even though action has been interpreted, it to a fault natesnot solve the dilemma. So, the author has offer recommendation for KFC as reference. This report was ended with a conclusion. CONTENT: sc on the wholeywag: ASSIGNMENT TITLE PAGE i EXECUTIVE SUMMARY ii CONTENT iii 1. 0 INTRODUCTION 1 1. 1COMPANY PROFILE 1 2. 0 ETHICAL DILEMMAS 2 . 1 POOR tonus PRODUCTS 2 2. 2 zoology ABUSE 4 2. 3 POOR WORKING CONDITIONS 4 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC 5 3. 1 PRODUCTSââ¬â¢ QUALITY IMPROVEMENT 5 3. 2 wolf WELFARE ISSUES 7 3. 3 ESTABLISH occupations union 9 4. 0 KFC BEST PRACTISES AND VALUES 11 4. 1 merged SOCIAL RESPONSIBILITY (CSR) 11 4. 2 ESTABLISH provider CODE OF manoeuver 12 5. 0 RECOMMENDATION 13 5. 1 GO FOR ORGANIC 13 6. 0 final result 14 addition 1 15 APPENDIX 2 21LIST OF REFERENCES 24 1. 0 INTRODUCTION This report was produced to analyze the short letter ethics of Kentucky fried jaundiced (KFC). First, the report started with a brief description on the guild bear outground. Next, it is continued with identification of the ethical dilemmas â⬠poor fictitious character yields, beast deprave and poor running(a) condition of KFC, provided from stakeholder analysis and ex group Ales from their history. After that, the report locomote on to the importance of the menti peerlessd ethical dilemmas and how KFC is dealing with it. The actions taken be product quality improvement, animal profit issues and establish union.This inc lude the application of the diverse ethical theories. Then, it is continued with the near(a) side of KFC when the analysis was through on KFC best practices and honours that KFC ar practicing. It included bodily Social Value (CSR) where they offered ââ¬ËProjek Penyayang KFCââ¬â¢ in Malaysia and Colonelââ¬â¢s Scholar Program, practicing the look upon of hope and love; and established supplier code of conduct by practicing the value of safeice. Further, the author baffle on suitable recommendations for KFC such as Go for Organic, with the hope that the see recommended piece of tail fiscal aid KFC in expanding their line of reasoning towards a b mightyer future.Lastly, this report was closed up with a conclusion justifying the essentiality of stage note ethics. 1. 1 COMPANY BACKGROUND KFC, appointed and withal k right away as Kentucky deep-fried yellow(a), is a fibril of stead dissolute nutrient eating places based in Louisville, Kentucky and is now one of the salubrious-kn throw ready nourishment eating houses which operates in more than(prenominal) than than than 11,000 branches in more than 80 nations and territories passim the world. Examples are UK, mainland chin informed, Thailand, Malaysia, Kuwait, Spain and Bar disconsolateos, Puerto Rico, Pakistan and legion(predicate) more.KFC started with Colonel Harland Sanders who grew up to conk a personage the world known as Colonel Sanders throughout the age, discovered his penchant for formulation when he was lonesome(prenominal) 9 years old. KFC is now regarded as the intimately whiner restaurant chain providing a additional spill peeing taste fried fearful that brush asidenot be replaced with lily-livereds natural juices sea conduct-in; leaving KFC with pride as a fast- forage restaurant that provide customers with a plectron of home-styled side dishes and desserts such as coleslaw and ice-creams to misrepresent a wholesome, complete and satisfying meal scorn just now constituent great tasting fearful (http://www. fc. com). (Refer to attachment I). 2. 0 ETHICAL DILEMMAS fit to downwind Flamand (eHow, 2011), ââ¬Å"an ethical dilemma is a situation wherein incorrupt precepts or ethical obligations conflict in such a way that any possible occlusion to the dilemma is mor onlyy intolerable. In opposite words, an ethical dilemma is any situation in which point moral principles fecesnot determine which course of action is business or wrong. ââ¬Â (http://www. eHow. com) The competition amongst fast victuals restaurants is increasing where KFC hold to come out with more choices of selection to meet the demand of their patrons.At the aforesaid(prenominal) time, they break to think of ways to unclutter more sales, delete costs, and basic bothy maximize the advances of the firms and faced many ethical dilemmas solicitudeing their products and consumers during the surgical procedure. The ethical dilemmas include poor q uality products, animal abuse and poor attain conditions. 2. 1 POOR QUALITY PRODUCTS David Ludwig (2009), director of a capital of Massachu hangts childrenââ¬â¢s hospital said that ââ¬Å"fast- nutriment consumption has been shown to improver calorie intake, promote weight gain, and elevate peril for diabetesââ¬Â (http://www. the immaturewellness. com).Fast Food is usu on the wholey un healthy, andàprat frequently tercetàto loyal consumers having weight problems. This matter got worst to KFC where in year 2006, KFC was being sued for frying its icteric with cooking oils that contain Trans-fats, which can contri alonee to warmth sickness and diabetes. According to Mayo Clinic, trans fat is in any case c individually(prenominal)ed trans-fatty acids and assume by some doctors to be the worst vitrine of fat which both raises ââ¬Å"badââ¬Â (LDL) cholesterol and lowers ââ¬Å"goodââ¬Â ( alpha-lipoprotein) cholesterol. A naughty LDL cholesterol take in c ombination with a low HDL cholesterol level amplifications the risk of getting heart disease (http://www. ayoclinic. com). Trans fat is bad that it boosts the risk of coronary thrombosis disease and people should precisely consume no more than 2 g per day. How perpetu tout ensembley, KFC claimed its products ââ¬Å"meet or exceed all governing regulations. ââ¬Â But as the Center for Science in the Public Interest, the activist group behind the lawsuit, points out, a three-piece extra-crispy jazz group meal, which is called ââ¬Ë d intimate-plateââ¬â¢ in Malaysia, contains 15 g of trans fat which is more than a person should ingest (Time magazine, 2006).In mainland mainland chinaware, some of the outlets in Xianyang city were being acc utilise for using the same frying oil to fry chickens up to 10 days and this can cause cancer (http://www. chinadaily. com. cn). Furthermore, dissimilar examples such as: customers cut her tongue and mouth after plastic was been const itute when she consumed coleslaw, bloody tie comprise under KFC baked beans, worms discover in sandwiches, children became sick after eating KFC in Colorado, be that KFC poor quality products issue has achieving a truly dangerous level (http://www. kfcmademesick. com/). Added on, some KFC outlets were blush compel to pay compensation for injuries.Example: KFC in Plymouth has been fined $13,000 for plowing raw chicken to their customers (http://www. dailyrecord. co. uk). In year 2009, KFC in central London faced forage hygiene charges with the cases where unconditioned sighting of cockroaches, mice, rats and flies flying a organize was found when an investigation was done in the city. The owner has been fined ? 20,000 and was asked for shipboard shop closed down (http://www. caterersearch. com). 2. 2 ANIMAL ABUSE Since the late 1990s, KFC faced s evere protests by pot for Ethical Treatment of Animals (PETA), an animal rights shelter nerve.The im neat breeding of birds c ombined with improper operative conditions of workers and lack of ethically efficient operation blowes led to improper practices in KFCââ¬â¢s supplierââ¬â¢s poultry farms. According to Donald G. McNeil Jr. who published his article in rising York Times in 2004, ââ¬Å"an animal rights group involved in a tenacious legal dispute with KFC released a videotape masking slaughterhouse workers for one supplier jumping up and down on cash in ones chips chickens, drop-kicking them like footballs and slamming them into walls, seemingly for funââ¬Â.Furthermore, early(a) acts of cruelty which include asphyxiate a chicken by tying a latex glove over its head, workers tearing beaks off, tongue tobacco juice into birds mouths, ripping a birds head off to write graffiti in blood, plucking feathers to ââ¬Å" check it snow,ââ¬Â and squeezing birds like water balloons to spray ordure over some different birds were all saw by an under investigator who works for the company ( http://www. thenazareneway. com). KFC suppliers sluice cram birds into huge waste-filled factories, breed and drug them to start out so large until the chicken could not level walk, and often break their wings and legs.The chickensââ¬â¢ throats were slit and they were dropped into tanks of scalding-hot waterââ¬often while they were still conscious during slaughtering process (http://www. kentuckyfriedcruelty. com/). As a result KFC was accused of animal abuseàby PETA, on the supplierââ¬â¢s farm. 2. 3 POOR WORKING CONDITIONS Poor working conditions is eternally an issue for KFC especially for the branches located in big countries such US, India and China. In US, workers in Pilgrimââ¬â¢s Pride Poultry farm did animal treat action just to alleviate boredom or vent frustrations especially when so many chickens were approach in that they would arrest to work late (http://www. henazareneway. com). On the other hand, according to the city government of Guangzhou, China ; effective from January 1 year 2006, the minimum engross for part-time grate bad-temperedise by topical anesthetic regulations is at 7. 5 Yuan per hour in big cities such as Guangzhou but KFC only paid them with 5. 5 Yuan. KFC were bombarded for this contract as it had go against the legal rights of employees. KFC allegedly force part-time employees to work the same hours as full-time ply but fail to pay them any of the benefits to which full-time staff are entitled.Adding on, employees who work more than five hours a day and 30 hours a week should be treated as full-time staff and start out the same fringe benefits according to the mainland laws. However, the Guangdong campaign authoritys illuminance indicates that part-time working savants are not protected by the law, which is a relief for the employers involved. It was extremely cheating(prenominal) for those part-timers (China concern, 2006). 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC According to De George, R.T who has written in his book entitled ââ¬Ë agate line Ethics (5th Edition) in year 1999, he declares that an ethical dilemma occurs when the choice is delimitate unclearly between ersatz actions with moral content. Whether a specific behavior is right or wrong, ethical or unethical is often determined by the come to stakeholders and an individualââ¬â¢s personal ethics. As a result, values, judgments, and complex situations all play a critical role in ethical decision making. 3. 1 PRODUCTSââ¬â¢ QUALITY IMPROVEMENTThe mind KFC using trans oil at beginning because the food produced is much tastier. Trans oil which is introduced in 1990ââ¬â¢s, claims that it is suitable to reticence natural oil and healthy. It has demote procedures under high heat, doggeder shelf brio and likewise it is cheaper (http://www. msnbc. msn. com). For example: The crispy fried chicken is resulted crispier when frying with trans oil. Here, it is very clear that KFC has a b ad judgment in choosing the types of oil to be used and caused them being sued on their judgment.KFC also react as activist stakeholder where by using trans oil which is cheaper, they believe their coronation depart giving them a good return in profit. In these new era with full of humming and stressful lifestyle, so as dual-working families where both parents are forced to work to increase the income of a family, more and more people are fully dependant on quick meal solutions and most testament opt for fast food. Fast food such as KFC is not only a fast food restaurant, but the mail- KFC and their products allow extremely coppice a place in every(prenominal)oneââ¬â¢s life as it really helps in saving a meal-preparation time.Although people start to be more health conscious of having good health and body figures, fast food especially KFC may cause fleshiness according to research. Health Organizations in most ontogeny countries such as U. S, and U. K, take hold star ted to encourage their citizens to concern more some their having healthy life by having nutritious meal. Since KFC started their operations and expanded their business globally, the ââ¬Ëchicken-mealââ¬â¢ they offered, only gains a bad image and reputation of a fast food that provides greasy unhealthy food.Fast food has the potential to impact directly and visibly on peoples well-being like obesity. With this case, KFC practice the theory of utilitarianism which is also called ââ¬Ëthe superior happiness principleââ¬â¢ where they stick out taken an action which results greatest summation of people receiving the greatest amount of good. So, KFC came out with Kentucky Grilled yellow-bellied which is marinated with blue blend of secret herbs and slow-grilled to juicy perfection. This new product has fewer fat grams, fewer calories, and less sodium than original convention chicken.Besides, all KFC chicken products practice Zero Grams Trans expatiate per inspection and repair where they befool found the perfect recipe by incorporating the Colonelââ¬â¢s 11 herbs and spices with a new cooking oil that contains postal code grams of trans fat. Beside fried chicken, many others favorite KFC side dishes such as mashed potatoes and wages are now served with zipper grams of trans fat (http://www. kfc. com). KFCââ¬â¢s new products and Zero Grams Trans Fat plans allow help them to push up their brand where they tend to promote happiness through serving customers with nutrient food and it is also a collapse option for health-conscious customers.According to Brooks and Dunn (2009), ââ¬ËThe ethically correct action is the one that give produce the greatest amount of pleasure or the least amount of pain. ââ¬â¢ 3. 2 ANIMAL WELFARE ISSUES Since the case of animal abuse being explored to the world, KFC faced the toughest challenge in where it heat up the national ken towards the animal welfare. People all around the world started to be concern ed slightly this issue as KFC has their branches worldwide. Animal abuse case occurred huge ruckus by the public has caused the corporation to lose their image and their reputations are super damaged because of the law give tongue to by PETA.After the consequent, stakeholderââ¬â¢s expectations and demands regarding the standardized guidelines of animal preaching were also increased. The case not only affected the business all over the world, but also its brand (KFC) reputation, employee turnover and profit as KFC has their branches in most of the countries and hence, caused the noteworthy impacts on the relationship between contemporary presidency such as McDonald, Burger King, Wendy and Safe-way as they also afeared(predicate) that KFC might drag them down, their shareholders such as the owners of distributively KFC branch restaurants and in the long run public opinion.Just like other fast food chain, KFC seems trying to minimize their reckon and hence maximize their profits without considering their suppliers and customers instead they should put on priority on the importance of ethics. suppliers just did what pass along by KFC without mentation their negative impacts when requisition form for chickenââ¬â¢s meat increased. Here, KFC react brilliantly where they did not run away from reality as several actions had been taken to keep down the problems and tried to make the issue â⬠a ââ¬Ël recognizeingââ¬â¢ history for all.KFC took an contiguous responds and actual a series of plan to overcome the problems and this action has become a trend for KFC in the future. When receiving a little pressure from PETA, KFC Canada agreed to a historic new animal welfare plan that they became the startle major restaurant chain ever in whole world to purchase all of its meat exclusively from controlled-atmosphere killing (CAK) slaughterhouses and dramatically the lives and deaths of millions of chickens for Canada. http://www. thepoultrysite . com. ) CAK is a method of slaughtering poultry where chickens do not assume when being removed from the crates,àhung upside down, shackled, bled, and scalded in defeathering tanks which leads to struggling, stress, and humiliated wings. The processes work the oxygen in the transport cages is replaced with other gasses such as carbon dioxide, argon or nitrogen to gently put them into ââ¬Ësleeping mannerââ¬â¢.The birds die from the lack of oxygen, and are dead ahead they are ever handled by slaughterhouse workers (http://animalrights. about. com/). Besides, there are no chances for workers to abuse the chicken as they never have to chance to handle live chickens in CAK. This process even provide with better results when workers do not need to struggle with flapping, scratching, vomiting, and defecating chickens, lights can be kept bright throughout the process and the air maintain at its cleanliness level (http://www. peta. org/).As stated clearly in KFC main website, a ll suppliers moldinessiness comply with the KFC policy which is they are purely not allowed to use hormones and steroids for any purposes, including up(a) produce in chickens due to the genetically engineered for faster growth and antibiotics are strictly prohibited. To show their sincerity in transformation, KFC even formed the KFC Animal Welfare Advisory Council, which consists of highly regarded experts in the field who exit provide data and advice based on relevant data and scientific research which has been a key factor in formulating their animal welfare broadcast.To rebuild the public office towards KFC, the company allowed PETA to review its animal welfare audit forms every six months (http://www. kfc. com). 3. 3 ESTABLISH northern Employees play one of the most important characters in the whole process. Without these people, KFC might not have such a huge success in their business until today. After the incident of underpaying their part-time workers inàGuangzhou , they coif up trade union branches across the province.This incident has highly touched up people awareness to protect human rights especially in China when media from yarn-dye, Taiyuan, Tianjin, Fuzhou and Beijing reported similar findings and have caused tumult across China. Furthermore, the unfair treatment to employees increased when labor officials in Shanghai claimed that they have not found any regulations in KFC outlets as the rules in Shanghai do not apply to part-time or to student.The unclear stipulations on the rights and benefits of part-time or student employees enable KFC to make use of the legal loopholes as all fast-food restaurants are profit-making enterprises that wish to earn more profits by winning advantage on their part-time employees. KFC practice the theory of egoism here as the company only care about themselves rather than considering about itsââ¬â¢ employees profits. ââ¬Å"Cheating part-time workers is also a rough-cut practice in the US becaus e companies take advantage of the fact that most part-timers are young, inexperienced and lack representation.These businesses should be required to deposit to the rules and regulations of the host country,ââ¬Â said TangXiaojing to China Daily in year 2007. This whole case also tells China and the world that people have to be aware of the unequal situation for laborers in China, and to wonder why the legislation is always so vulnerable (http://www. china. org. cn) In return, KFC claimed that they would took things seriously by smell forward into the situations and pull up stakesing approached the local trade union of the city for counselor-at-law of set up the trade union.KFC has applied the theories of fairness here where everyone has been free to receive rewards for their hunting expeditions, which is also known as procedural umpire (Beauchamp ;amp; Bowie, 1997). The prexy of Yum Brands Inc promised that KFC will accept every statements ruling Chinese government makes o ver its alleged illegal developing of part-time staffs in China. And they would do whatever is requested by the trade union after they have concluded their investigations into the employment of KFCââ¬â¢s part-time workers.Besides, trade union in several cities in China will work together with local labor and amicable security departments to investigate the entire fast food restaurants in China which were suspected to have similar unlawful behavior to protect the rights of employees. With the cooperation between KFC and members of All China Federation of Trade compact to establish KFC own union, the author believes the cases of unfair treatment to employees will be lowered and KFC branches in China will be the model for other KFC in other countries (http://www. china. org. cn). 4. 0 KFC BEST PRACTISES AND VALUES 4. CORPORATE SOCIAL RESPONSIBILITY (CSR) The brand KFC has been carved in peopleââ¬â¢s heart as one of the best fried chicken restaurant and in return, KFC participa ted themselves in CSR as CSR is all about how a company manages the business processes to produce an overall optimistic impact on alliance (http://www. mallenbaker. net) â⬠Refer to Appendix II. KFC takes its CSR priority faithfully and makes a dedicated effort to fulfill its tasks in every area including the community, education, diversity, commercialise place, workplace, and animal welfare which is also benefiting to all including its stakeholders.CSR which is also claimed to be a selling purpose is logically captured in the new definition of marketing answered by the American marketing Association (2004) which stated ââ¬Å"marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholdersââ¬Â. KFC practiced the value of Hope and Love. In Malaysia, KFC Malaysia has set up ââ¬ËProjek Penyayangââ¬â¢ as appreci ation for greatly turn out by the Malaysian. Project Penyayangââ¬â¢ which was founded in 1995, was purposely developed to provide food to a total of 80 homes every quarter to enable thousands of orphans and underprivileged to sleep with KFC meals. With a heart of caring, KFC fulfill the hope of orphans who wished to have KFC. ââ¬ËTabung Penyayang KFCââ¬â¢ which is a unique caudex representing a part of revenue generated from sales of KFCââ¬â¢s Kidsââ¬â¢ Fun Meals was set as a charity fund to help children and needy through various CSR Program. Adding on, all the programs also included donation, charity, and organize open house dinner particularly to those less fortunate, elderly and orphaned (http://www. fc. com. my). compassionate is about wanting another person to pursue and do well in life and their career. With a heart of caring, KFC cares about students education. KFC create a fund â⬠Colonelââ¬â¢s Scholars, offering scholarships for entrepreneurial d rive and strong perseverance high school seniors who need financial helps to support their school fees in their study career. Students who are selected will received up to $ 20,000 to receive a bachelor degree program in the university the students have chosen inside their cities only (http://www. kfcscholars. org/). 4. ESTABLISH SUPPLIER CODE OF CONDUCT KFC practice the value of justice where they protect the rights and punish the wrongs. Supplier code of conduct is established by KFC U. S. which is committed to protect all U. S. suppliersââ¬â¢ employeesââ¬â¢ rights by conducting its business towards legal, ethical and socially responsible manner. All KFC suppliers are required to follow and indorse by all applicable laws, codes or regulations which includes not limited to any local, state or federal official laws regarding wages and benefits, employeesââ¬â¢ compensation, working hours, equal opportunity, worker and product safety.All suppliers are expected to confirm t heir practices to the published standards for their patience in order to get the contract to give goods to KFC. Staffs of suppliers are protected in many areas where they must have safe and healthy working conditions and working schedules, non-discrimination occurs in industry, child labor issue where employees downstairs 14 years old are strictly prohibited from working, forced and indentured labor and at long last notification to employees where notices of policies can be clearly explained to them.With addition, suppliers who are failed to follow the Code may cause them to disciplinary action which might include the termination of the Supplier relationship with KFC. KFC pay full respect to all the employees as they work for suppliers who supply chicken meats and goods for KFC who claimed to be working indirectly for KFC. 5. 0 RECOMMENDATION Marketing strategy used to be very important in a business as a well-planned marketing strategy helps a business to earn more profitabili ty, well-known brand mark and commitment from customers.As time goes by, marketing strategy cannot be dependent on just meeting the needs and demands of all stakeholders. KFC should now by right focus on how to deliver a better service and productsââ¬â¢ quality to customers as the brand â⬠KFC has already been recognized by everyone in the world. 5. 1 GO FOR ORGANIC! Empha surfaces should be done on consumer health, productsââ¬â¢ quality and social function initiatives as people start conscious about having good health and enough nutrients. When people start going for radical fertiliser, KFC should go for it too!Organic products and other ingredients are grown without the use of pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms, or ionizing radiation. Organic meat, poultry, eggs, and dairy products are come from animals such as chickens and oxen that do not take antibiotics or growth hormones (http://organic. org). Going for organic food products will increase the modal of production and it needs a long period of time for this huge transformation as there are few steps that have to be followed.According to USDA National Organic Program (NOP), a Government-approved certifier will inspect the farm where the food is grown to make sure the farmer is succeeding(a) all the rules necessary to meet USDA organic standards before a product can be labeled ââ¬Å"organic,ââ¬Â. Companies that handle or process organic food before it gets to your local supermarket or restaurant must be certified, tooââ¬â¢.On the other hand, it will be the hardest decision for KFC as they have to do surveys and further consideration whether the program is suitable for every KFC branches in the whole world as KFC have to reconsider about looking for new trustable suppliers that can continuously provide organic food and it is tough. KFC can always start slowly from the beginning by providing several choices from organic food such as organic s alad, organic soya bean crispen instead of carbonated flavored drinks, and mashed potatoes made from organic potatoes.If the program run with success, KFC will become the offshoot ever fast food chain that provides organic food products and the author strongly believes that the strategic planning will surely increase the sales of KFC and gaining more profit although KFC products will be sell at higher(prenominal) prices due to highly increased modal. 6. 0 certainty Conclusion, ethics is definitely necessary for a business to grow successfully, become more significant and more organized. A business can highly impact on the peopleââ¬â¢s lives and circumstances through providing jobs, life organization, creating wealth and inspiring others to grow their own business.Therefore, the business maybe ruined and leaves it with a bad reputation if an organization is not having a proper understanding on business ethics. From bad to good, KFC has asleep(p) through every hard time and no w moving towards a better future when they finally overcome most of its ethical issues. People do make mistakes and learn from mistakes so as KFC. KFC will learn from their mistakes and make the mistakes to the power of change. The author strongly believe that KFC will do their best in meeting everyoneââ¬â¢s need and KFC will become the first priority for every human when they thinking of nice and tasty fried chicken.KFC â⬠So reasoned! APPENDIX 1: KFC HISTORY and PRODUCTS KFC HISTORY-AT-A-GLANCE 9/9/1890 Harland Sanders is born just remote Henryville, Indiana. 1900-1924 Harland Sanders holds a commixture of jobs including: farm hand, streetcar conductor, army private in Cuba, blacksmiths helper, railyard fireman, insurance salesman, tire salesman and service plaza wheeler dealer for Standard Oil. 1930 In the midst of the depression, Harland Sanders opens his first restaurant in the small front room of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier and names the dine area ââ¬Å"Sanders cost & Cafe. 1936 Kentucky regulator Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the states cuisine. 1937 The Sanders act ;amp; Cafe adds a motel and expands the restaurant to 142 seats. 1939 The Sanders Court ;amp; Cafe is first listed in Duncan Hines ââ¬Å"Adventures in advantageously Eating. ââ¬Â Fire destroys The Sanders Court & Cafe, but it is rebuilt and reopened. The pressure cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers fresh chicken, faster. 1940Birthdate of the sure Recipe 1949 Sanders marries Claudia Price. 1952 The Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold. 1955 An interstate roadway is built to bypass Corbin, Kentucky. Sanders sells the service station on the same day that he receives his first social security check for $105.After paying debts owed, he is just about broke. He decides to go on the road to sell his Secret Recipe to restaurants. 1957 Kentucky Fried Chicken first sold in buckets 1960 The Colonels hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U. S. and Canada. 1964 Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and the first overseas outlet, in England. Sanders sells his interest in the U. S. company for $2 million to a group of investors headed by can Y. Brown Jr. , future governor of Kentucky.The Colonel remains a public spokesman for the company. 1965 Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges Association. 1966 The Kentucky Fried Chicken Corporation goes public. 1969 The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange. 1971 to a greater extent than 3,500 franchised and company-owned restaurants are in worldwide operation when Heublein Inc. acquires KFC Corporation. 1976 An autarkical survey ranks the Colonel as the worlds second most recognizable celebrity. 1977 Colonel Sanders speaks before a U. S.Congressional Committee on Aging. 1979 KFC cooks up 2. 7 billion pieces of chicken. There are round 6,000 KFC restaurants worldwide with sales of more than $2 billion. 12/16/1980 Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for four days. 1982 Kentucky Fried Chicken becomes a subsidiary of R. J. Reynolds Industries, Inc. (now RJR Nabisco, Inc. ) when Heublein, Inc. is acquired by Reynolds. 1986 PepsiCo, Inc. acquires KFC from RJR Nab isco, Inc. 1997 PepsiCo, Inc. nnounces the turn out of its quick service restaurants â⬠KFC, Taco Bell and pizza pie Hut â⬠into Tricon Global Restaurants, Inc. 2002 Tricon Global Restaurants, Inc. , the worlds largest restaurant company, changes its corporeal name to YUM! Brands, Inc. In addition to KFC, the company owns A;amp;Wî All-American Foodî Restaurants, Long John Silversî, Pizza Hutî and Taco Bellî restaurants. 2006 more(prenominal) than a billion of the Colonels ââ¬Å"finger lickin goodââ¬Â chicken dinners are served annually in more than 80 countries and territories around the world. 2007 KFC proudly introduces a new recipe that keeps the Colonels 11 herbs and pices and finger-lickin flavor, but contains Zero Grams of Trans Fat per serving thanks to new cooking oil. 2008 The Colonel has a new look! KFC updates one of the most recognized, respected and honey brand icons with a new logotype. The new logo depicts Colonel Sanders with his signat ure string tie, but for the first time, replaces his stainless white, double-breasted suit with a red proscenium wall. The apron symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is always in the kitchen cooking delicious, high-quality, freshly prepared chicken by hand, just the way Colonel Sanders did 50 years ago. 009 KFC introduces Kentucky Grilled Chicken™ â⬠a better-for-you option for health conscious consumers who love the flavor of KFC. Kentucky Grilled Chicken has less calories, fat and sodium than KFCââ¬â¢s trustworthy Recipeî chicken, without sacrificing the great taste of KFC. APPENDIX 2: Corporate social responsibility â⬠What does it mean? By Mallen Baker: First published 8 Jun 2004 unrivalled of the most frequently asked questions at this site â⬠and believably for all those individuals and organizations dealing with CSR issues is the obvious â⬠just what does ââ¬ËCorporate Social Responsibility me an anyway?Is it a stalk horse for an anti-corporate agenda? Something which, like original sin, you can never escape? Or what? Different organizations have framed different definitions â⬠although there is considerable common ground between them. My own definition is thatàCSR is about how companies manage the business processes to produce an overall controlling impact on society. Take the following simile: Companies need to answer to two aspects of their operations. 1. The quality of their centering â⬠both in terms of people and processes (the inner circle). 2.The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. almost look to the outer circle â⬠what the company has genuinely done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly concentrate â⬠as well as past financial performance â⬠on quality of management as an index finger of likely future performance.Other definitions The World Business Council for sustainable Development in its publication Making Good Business Senseàby Lord Holme and Richard Watts, used the following definition. ââ¬Å"Corporate Social Responsibility is the continue commitment by business to behave ethically and total to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at largeââ¬Â The same report gave some tell apart of the different perceptions of what this should mean from a number of different societies across the world.Definitions as different asàCSR is about capacity building for sustainable livelihoods. It respects ethnic differences and finds the business opportunities in building the skills of e mployees, the community and the governmentàfrom Ghana, through toàCSR is about business giving back to societyàfrom the Philippines. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes.It is seen as tainting the act for the company to receive any benefit from the giving. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because: 1. Social responsibility becomes an integral part of the wealth understructure process â⬠which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. 2.When quantify get hard, there is the incentive to pra ctice CSR more and better â⬠if it is a philanthropic exercise which is fringy to the main business, it will always be the first thing to go when push comes to shove. But as with any process based on the incorporated activities of communities of human beings (as companies are) there is no ââ¬Ëone size fits all. In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues.For instance, the CSR definition used by Business for Social Responsibility is: ââ¬Å"Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. ââ¬Â On the other hand, the European Commission hedges its bets with two definitions wrapped into one: ââ¬Å"A concept whereby companies decide voluntarily to contribute to a better society and a tidy environm ent. A concept whereby companies integrate social and environmental concerns in their business operations and in their fundamental interaction with their stakeholders on a voluntary basis. ââ¬ÂWhen you review each of these, they broadly agree that the definition now focuses on the impact of how you manage your core business. Some go further than others in prescribing how far companies go beyond managing their own impact into the terrain of acting specifically outside of that focus to make a contribution to the achievement of broader societal goals. It is a key difference, when many business leaders feel that their companies are ill fit to pursue broader societal goals, and activists argue that companies have no democratic legitimacy to take such roles. That particular debate will continue.LIST OF REFERENCES: [Book]: Crane, A. and Matten, D. 2007,àBusiness Ethics:àManaging Corporate Citizenship and sustainability in the age of globalization, 2nd Edition, Oxford University Press Inc. , New York, accessed on 15th declination 2009, available. [Book]: Frederick R. E. , A henchman To Business Ethics Wiley-Blackwell, August 9 2002, accessed on 15th celestial latitude 2009, available. [Book]: J. Brooks, L. & Dunn, P. (2009), Business & Professional Ethics for Directors, administrator & Accountants 5thàedition, Cengage Learning (2009), accessed on 12th declination 2009, available. Book]: Managing information technology in a global environment:à2001 Information Resources guidance Association International Conference, Toronto, Ontario, Canada, May 20-23, 2001, accessed on eleventh celestial latitude 2009, available. [Online]: http://animalethics. blogspot. com/2009/10/h-b-acton-1908-1974-on-animal-rights. html, accessed on 9th December 2009, available. [Online]: http://animalrights. about. com/od/animalsusedforfood/f/Controlled-Atmosphere-Killing-What-Is-Controlled-Atmosphere-Killing. htm, accessed on 11th December 2009, ava ilable. [Online]: http://www. atimes. om/atimes/China_Business/ID20Cb02. html, accessed on 11th December 2009, available. [Online]: http://www. caterersearch. com/Articles/29/10/2009/330646/Leicester-Square-KFC-faces-13-food-hygiene-charges. htm, accessed on 15thDecember 2009, available. [Online]: http://www. china. org. cn/english/China/206787. htm, accessed on 10th December 2009, available. [Online]: http://www. china. org. cn/english/China/206640. htm, accessed on 10th December 2009, available. [Online]: http://www. china. org. cn/english/BAT/205948. htm, accessed on 10th December 2009, available. [Online]: http://www. hina. org. cn/english/China/208113. htm, accessed on 10th December 2009, available. [Online]: http://www. chinadaily. com. cn/china/2007-03/09/content_823985. htm, accessed on 14th December 2009, available. [Online]: http://www. darkztar. com/ fabrication/showthread. php? 52669-The-ethical-dilemmas-of-fast-food-industries, accessed on 7th December 2009, available. [Online]: http://www. ehow. com/about_5481837_ethical-dilemma_. html#ixzz1f0HrybvU, accessed on 8th December 2009, available. [Online]: http://edwardkhoo. com/kentucky-fried-chicken-kfc-animal-cruelty/, accessed\r\n'
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