Describe about the Business Ethics for Concerning a Business Institution.
The essay would essentially focus on highlighting ethical issues concerning a business institution carrying out its activities both along its home and international markets. The essay would further analyse the conducts of the business institution based on the incorporation of different normative ethical theories. Finally, managerial implications would be generated based on the inferences gained of the different normative ethical theories and are required to be followed by the management of the business institution in an effective fashion for conducting of activities in an ethical fashion.
Literature Review
The business activities of the global fast food retailer, McDonald’s are featured with a large number of ethical issues that scandalise its operations on an international scale. Regarding, its CSR responsibilities, the charity activities undertaken by the fast food retailer under the Ronald McDonald CSR campaign happened to be identified as unethical owing to emergence and growth of child exploitation (Carrigan & De Pelsmacker, 2009). The ethical issue associated with child exploitation tended to reduce the recognition of the charity campaign of McDonald’s. Further, the charity activities conducted by McDonald’s is often criticised owing to their failure in addressing the needs of children communities of families below the average income groups (Brunori, Malandrin, & Rossi, 2012). The working conditions provided by McDonald’s is also debated and criticised on a global scale for its negative impacts on the productivity and performances of the employees. The employees and workers operating along the different stores and production units of McDonald’s both along its New York based units and in other 33 global regions vehemently protested and went on strikes for McDonald’s practice of generating low wages compared to the industry standards (Zafar & Lodhi, 2015). The case of McDonald’s Brazil also reflect increased protests by unionised workers and employees owing to the company’s practice of generating poverty level wages, maltreatment offered to pregnant workers and also regarding wage theft issues (Lauer & Cohenour, 2014). Protests regarding the payment of very to very low wages were also observed from workers operating in McDonald’s units operating in global regions like Japan and South Korea. McDonald’s is also observed to require the workers operate for longer working hours that in turn affects their health. The existence of low wages further degrades the situation such that it reduces the chances of the workers to gain effective treatment for their ill health generated by requiring working for long working hours (Zhang, 2015). The Corporate Governance activities of McDonald’s also earns lack of validity owing to the growth of a large number of ethical issues. Issues concerning the a television report generated during 2014 showing the company’s practices concerning packing of expired meat products potentially tarnished the Corporate Governance image of McDonald’s in the global market. The issue of packing and supplying expired meat products potentially affected the sales of McDonald’s products like Big Macs and also Chicken Nuggets (Gonzalez-Padron, 2016). Similarly, the lack of concern of McDonald’s in protecting the natural environment from growing pollution emitting from its different factories operated on a global scale along with the use of plastic and paper based utensils and cutlery items continue to affect the natural environment in terms of growth of heavy disposals. McDonald’s fast food operations also become legally and ethically questioned on account of use of increased toxins and chemicals for the generation of food products like French Fries (Bowen, 2013). An evaluation conducted during 2009 for understanding the authenticity of the food products reflected that the French Fries produced by McDonald have remained fresh beyond a ten week period. The same raised potential questions regarding the unsanitary and unhealthy eating and serving conditions at McDonald’s. Further, the executives and staffs operating in McDonald’s were observed to gain additional amounts from the customers in terms of serving food products generated by the stores (Johnson, 2014). Eating at McDonald’s restaurant outlets is also observed to be potentially unsafe for the consumers owing to the existence of increased fat that tend to cause serious ailments like heart diseases and gall bladder stone for the consumers. McDonald’s is also potentially criticised for generating effective advertisements based on attracting young mindsets regarding the consumption of fast food products generated by the restaurant chain (Uusitalo & Oksanen, 2004). The sales of expired food products by McDonald’s especially through its fast food restaurants located in the Chinese region is observed to significantly tarnish the ethical image of the company in the global market. The above issue significantly required the company to put off a number of meat products like beef, pork and chicken food products from its shelves which in turn largely affected its food product sales in the region (Yang & Jiang, 2014).
Different types of normative ethical theories associated with Deontological Theory, Utilitarianism Theory, Categorical Imperative, Virtue Ethics and finally Intuitionism theory are required to be discussed for analysing the ethical issues concerning McDonald’s.
The ethical theory of Utilitarianism ideally focuses on understanding the actions or policies that aim to generate social good or betterment. It focuses on evaluating the outcomes of policies and actions undertaken such that the same helps in choosing one policy or action over other policies and conducts required being undertaken (Angle & Slote, 2013). Further, the aspect of Utilitarianism also focuses to reflect that the policies or actions undertaken contribute in potentially influencing the mindset of the agent in conducting the required task rather than simply focusing on persuading the agent for generating the action (Athanassoulis, 2013).
Deontological theory of Normative Ethics potentially focuses on understanding the impacts of the consequences or actions that ought to follow from the actions conducted. It thus focuses on taking resort of such policies and actions that aim to generate positive impacts in enhancing the development of social communities (Austin, 2013). The Deontological theory of ethics however tends to reflect that whatever the consequences of actions good or bad the same must be evaluated based on its contribution in generating greater good or betterment to the society at large. According to Deontological Ethics the individuals are required to work with due honesty such that the same promotes greater good for all in the society (Angle & Slote, 2013).
The Categorical Imperative requires the individuals to behave in a rationalistic fashion such that outcomes generating from the rationalistic actions contribute in the generation of rationalistic consequences in an effective fashion. The Categorical Imperative thus firstly requires the conceptualisation of certain maxims (Wheeler, 2013). Secondly, it requires understanding whether the implementation of the maxim contributes in generating common good for all in the society (Fröding, 2012). Thirdly, the Categorical Imperative also focuses on judging whether the action or policy undertaken potentially meets the tenets of the natural law and finally it aims in understanding and evaluating that whether the situation or event for which the decisions are being undertaken is essentially governed by the natural law (Russell, 2013).
Finally, the ethical theory associated with the paradigm of virtue ethics essentially reflect on the moral characteristics that are needed to be borne by individuals for generation of duties and activities in a rightful fashion (Russell, 2013). Thus, different characteristics like honesty, generosity, courage and also needed compassion that influence individuals in addressing different situations in an ethical fashion. Virtue ethics thus requires individuals to work in a courageous fashion for generating potential actions even if the same tends to render unfavourable results or consequences (Boje, 2015).
The analysis of the ethical issues regarding McDonald’s based on the incorporation of the ethical theories discussed above reflect the following inferences.
The incorporation of Virtue Ethics essentially reflect that the staffs and workers operating in McDonald’s are required to work with needed honesty and commitment in serving the needs of different customers along the global market (Herring, 2013). The employees and workers are also to act as effective whistleblowers through helping in the identification of wrong conducts along the restaurants and other supply chain and production centres of the fast food retail chain. Again, the management of McDonald’s is also required to reflect needed compassion in generating quality, safe and nourished foods to the consumers visiting the restaurant outlets (Johnstone, 2015).
From the viewpoint of categorical imperative, the management of McDonald’s is required to formulate effective policies and action points concerning the generation of effective wages and salaries for the staffs and workers operating in McDonald’s. Similarly, effective policies and actions are required to be undertaken for generation of healthy, safe and nourished foods for the customers (Burkhardt & Nathaniel, 2013). The formulation of policies and actions promoting increased wage payments and also the generation of quality and safe products is taken to ideally contribute in generating social betterment for the employees and customers at large which also matches the tenets of the natural law promoting morality and social good for all (Morris, 2015).
The incorporation of deontological ethical theories can be carried out relating to the case of McDonald’s wherein the management of the restaurant chain is required to focus on the generation of stern measures like conducting potential investigation and also the removal of the staffs found guilty of conduct regarding the generation of unsafe and toxic food products to the customers (Suikkanen, 2014). Taking resort to such measures though would tend to affect the career of the staffs and employees operating in the supplier chains and restaurant units involved with such fraudulent activities yet the same would enhance the quality of the performance of McDonald’s retail outlets (Peterson, 2013).
Finally, the aspect of Utilitarianism is required to be followed by the management of the restaurant retail chain in terms of generating needed priority related to the formulation of policies that would focus on governing the gaining of effective and quality food materials from the suppliers for generation of safe and healthy products. Similarly, effective policies are also required to be developed for revising and enhancing the pay scales of the staffs pertaining to different levels to match the industry standards (Calkins, 2014).
Personal Reflection
The analysis has generated potential implications that are required to be ideally undertaken and generated by the business managers of McDonald’s regarding the formulation of new vision and mission statements reflecting on the enhancement of supply chain, customer servicing and production standards. Prioritising on the above points would rightly contribute in helping McDonald’s gain access to quality and safe products for serving the needs of the consumers. Similarly, McDonald’s is also required to develop effective personnel policies that would contribute in the enhancement of wage and salary standards for employees and workers involved along the different units and functional departments of the organisation. Further, the management is also required to revise and regularise the working period for the staffs and also generate a healthy and safe working climate in the organisations. The same would contribute in the generation of faster growth and productivity of both the organisational members and the restaurant chain as a whole. The implying of the above policy standards and regulations would potentially contribute in enhancing the loyalty of both the customers and the staffs towards the fast food retail chain and thereby would contribute in fostering growth and productivity in a mutual fashion.
Conclusions
The analysis carried out in the essay regarding the ethical implications for McDonald’s through the use of a number of normative ethical theories ideally reflect that the management of the restaurant retail chain needs to ideally pursue on the generation of policies and regulations that would contribute in governing the quality and safety of the food products and also the provision of effective salary and wage standards for the employees and staffs operating along the different retail outlets of McDonald’s. Similarly, the management of McDonald’s is also required to ideally focus on the generation of effective working standards and revise the working period for effectively catering to the needs of the staff members. The implication of the above policies would potentially help in reducing both internal and external tension such that the same generates increased productivity and performance of the firm in the global market.
References
Angle, S., & Slote, M. (2013). Virtue Ethics and Confucianism. New York : Routledge .
Athanassoulis, N. (2013). Virtue Ethics. United States : A&C Black.
Austin, M. (2013). Virtues in Action: New Essays in Applied Virtue Ethics. United Kingdom : Springer.
Boje, D. M. (2015). Organizational Change and Global Standardization: Solutions to Standards and Norms Overwhelming Organizations. New York : Routledge .
Bowen, S. A. (2013). Using Classic Social Media Cases to Distill Ethical Guidelines for Digital Engagement. Journal of Mass Media Ethics , 119–133.
Brunori, G., Malandrin, V., & Rossi, A. (2012). Trade-off or convergence? The role of food security in the evolution of food discourse in Italy. Journal of Rural Studies , 1-11.
Burkhardt, M. A., & Nathaniel, A. (2013). Ethics and Issues in Contemporary Nursing. United States: Cengage Learning.
Calkins, M. (2014). Developing a Virtue-Imbued Casuistry for Business Ethics. United Kingdom : Springer Science & Business Media.
Carrigan, M., & De Pelsmacker, P. (2009). Will ethical consumers sustain their values in the global credit crunch? International Marketing Review , 26 (6), 674-687.
Fröding, B. (2012). Virtue Ethics and Human Enhancement. United Kingdom : Springer Science & Business Media.
Gonzalez-Padron, T. L. (2016). Ethics in the Supply Chain: Follow-Up Processes to Audit Results . Journal of Marketing Channels , 22-33.
Herring, J. (2013). Q&A Medical Law 2013-2014. New York : Routledge .
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Johnstone, M.-J. (2015). Bioethics: A Nursing Perspective. United Kingdom : Elsevier Health Sciences.
Lauer, S., & Cohenour, R. (2014). Responding to Increased Regulation of the Food Service Industry: A Practical Analysis of Supply Chain Solutions for Franchisors and Franchisees. Franchise Law Journal , 34 (2), 175-197.
Morris, S. (2015). Science and the End of Ethics. United Kingdom : Springer.
Peterson, M. (2013). The Dimensions of Consequentialism: Ethics, Equality and Risk. United Kingdom : Cambridge University Press.
Russell, D. C. (2013). The Cambridge Companion to Virtue Ethics. United Kingdom: Cambridge University Press.
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