An Ethical Auditing Report For Kfc Commerce Essay

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Business ethics has existed for as long as people have worked together in corporation. Everyone in workforce needs to understand their own ethics standard in organizational settings. Business ethics knowledge is not only for managers and leaders. It is relevant and useful to anyone who works in and around organizations.

There are many ethical issues that an organisation face and one of the organisations which faces major issue is the Kentucky Fried Chicken. Primarily, the main objective of this paper is to provide a discussion about the issue faced by KFC and the ethical problems that the company encounters.

In 1939, Colonel Harland Sanders first gave the world a taste of his most famous creation, Original Recipe Kentucky Fried Chicken (KFC), featuring that secret blend of 11 herbs and spices. Since that time, millions of people the world over have come to love his one of a kind chicken, homestyle side dishes and hot and fresh biscuits.( http://www.kfc.com/about/history.asp)

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KFC is the biggest chicken fast-food enterprise of the world. It has more than 11,000 dining rooms in the world. These dining rooms spread over 80 countries, we can obviously see KFC dining rooms. Every day, there are more than 10,000,000 customers in KFC. KFC wins universal praise and has become the famous brand in the global.

2.0 The Problem Statement

The growing and bustling population of today is obviously different from the population of the previous decades in terms of health and nutritional attitudes and behaviors. People today are more concerned with their health and figures than ever before. This is a problem for KFC because it has already gain the reputation of a fast food that continuously provides greasy unhealthy food; whereas competitors have already made measures to reduce fats in their products. The company needs to do something about and shift its positive image back.

KFC 's grilled chicken launch was the biggest in the chain's history. It could also go down as an example of what a company shouldn't do. Everyone knows that the 'F' in KFC stands for Fried. As the biggest chain- dining enterprise in the world, KFC has one entire set of business operation and the management system. Both new recruits and the interns are all must carry on the training. In the training, KFC emphasizes the operating standard, because only do this, the customer can eats the healthy and security food. It is to say that the operation standard is the life of KFC.

The half-finished product makes each product. For example, Hamburg, it is made of the Hamburg bread, the chicken, the greens, and the mayonnaise. All of these half-finished products must keep fresh. When the half-finished products are not fresh, the manager who is on duty will reflect to shop manager. Product safety is a serious problem in KFC.

As for the government department, every year it will has one time sampling observation, but in this progress, the products that deliver are the best. As a long time, more and more person turns a blind eye to these similar things.

At all times, KFC is famous for their fried chicken. The fried food is bad for heath. This food is very harmful for our body. Maybe it can lead fat, and it is harmful for our health, but a good many people like it.

KFC have some double-tongued actions in order to business interest. In the competitive society, people must have a job to keeping their lives. Even though they know something is wrong in the corporation, but sometimes they work for the corporation all the same in order to exist better, maybe this work can support a family. Make a living or business ethics, what should they choose?

If hold the staff's flow problems well, should ensure the sale. KFC's staff is diversity in the workplace. Now, in many corporations, the common problem is people. The most important, is staff's flow problem.

One kind of staff's flow is the enterprise reduces staffs. Fairness principle is first. The enterprise possibly carries out the reducing staffs' way for improving efficiency and the productivity of operation. If the enterprise is not deal well, the staffs possibly feel uncomfortable and terrified all day that cause by reducing plan. They do not consider how to complete the work. They consider how to gets out of present condition. Continuously for a long time, the enterprise will be close.

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The other kind of staff's flow is the staffs leave their jobs willingly. Besides the enterprise reduces staff on own initiative, but also has the part of stuffs leave job to seek the better development opportunity willingly. This is bad for the company. The domination transfer made the partial enterprise members have the negative psychology anticipates. For instance, the supervisor is worried about that the enterprise compensates' reduction, the right loses and so on. The staffs are worried about receiving the discrimination. If the enterprise does not deal well, the stuffs will lose the confidence, even causes the personnel massively flow. KFC has this problem because their products are not health for the members. The company implements dignity principle, ensure that products and services sustain or enhance customer health and safety.

3.0 The Ethics Issue

Business ethics can be thought of in many different lights, and part of the reason that business ethics has become such a contemporary issue is because it cannot be defined precisely. Although most people have different standards of what is morally justifiable, society generally feels that there are certain values that should be set as the minimum ethical behavior. Most people believe that in order to meet the minimum ethical standards, a business must be honest, obey the law, and not directly infringe on the rights that our society holds as inalienable human rights.

3.1 Ethics are important to firms for a variety of reasons, including the legal responsibilities of the executives, costs of violations, and reputation. Executives and managers are often held liable for violations that occurred below them even if they did not know about or condone the situation. This is a major incentive for directors and top management to see that their organization keeps ethical considerations in perspective while making decisions. In fact, a company with an organized and efficient ethics management program will be treated more leniently by prosecutors in the event of a violation. If the company had strong prevention policies and procedures in place, its consequences will not be as harsh (Bordwin, 1998). This essentially rewards directors and top management who are committed to creating an ethical atmosphere, in the event that an unforeseen unethical situation arises. Companies must commit themselves to a high standard of ethics because litigation is very costly to an organization.( http://www.business-ethics.com/)

The ethical stance that can be adopted by the company is perhaps the one pertaining to the assurance of providing healthy products by using alternative oils which do not contains Tran's fatty acids. The company's ethical stance should not be based on short term goals. Kentucky Fried Chicken may have said that they are not using these kinds of oils to adhere to ethical standards of protecting the health of their customers but these efforts do not directly address the problem. The company is still encountering negative issues brought about by its negligent behavior.

Good ethical management through a societal marketing approach, as a term, has come to imply good, in the non-moral as well as the moral sense. In its moral sense good ethical management has come to be seen as promoting an ethical climate that is both morally appropriate in itself, and consequentially appropriate in that ethical behavior in business is reflected in desirable commercial outcomes ( 2000). Thus, the links here are with due diligence, directors' duties, and the general tightening of corporate responsibility.

The company's management style should set a proper example of good intent, and provide for those lower in corporate hierarchies the clear message that it is "do as I do" as well as "do as I say" ( 2000). Middle and lower management find it hard to be ethical when it seems that the top of the corporate hierarchy have no commitment. The message of sincerity will always filter down, and no amount of deception will foster the view that a board is ethical when it plainly is not.

Additionally, the commitment to ethical corporate governance by a board will enhance the prospects of an ethical infrastructure within the organization. That ethical infrastructure is a manifestation of the commitment, a means of preventing and resolving ethical problems, and an impressive demonstration of sincerity.

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3.2 Virtue ethics is often viewed as a separate branch in itself. Although it is certainly normative as well, virtue ethics is distinguished form other forms of normative ethics because it is concerned with possessing moral traits and living a good life generally as opposed to evaluating actions alone.

A fast food chain industry with good business ethics can usually arouse a sense of responsibility and belong among its staffs and even the general publics that may be very conducive to the coordination and realization of company goals. There are two ways to motivate staffs---material motivation and spiritual motivations. So the pure material motivations will ultimately increase the expenditure. If a company wants to motivate staff more, it has to pay more. What is worse, if you lower down the incentives, it will result in unsatisfaction and resentment. Take ethical issues in the decision in all walks of a company will be helpful to the working atmosphere. The building and accumulation of a hotel ethics will be embodied in the details and in other words, every decision. Some research results show that negative beliefs lead to negative attitudes and negative behaviours (1995).

Of course, the company probably sells more fried chicken than anything else, for one simple reason: people want to buy it and eat it. By taking the fat out of the signage and advertising, the company removed a psychological barrier. Consumers who suffer from "fat-guilt" somehow feel less compelled to avoid these restaurants. By leaving fried chicken on the menu, however, the company can still sell what the consumers really want. KFC serves as an interesting object lesson in market behavior. Words were adjusted in order to change public perception of a reality that is essentially unchanged.(Written by Mick Abraham) That Original Recipe fried chicken is just the same, regardless of what the sign outside says. However, just changing the corporate image seemed to have enough positive effect on consumer psychology to justify the cost.

4.0 Recommendation for KFC

With the issue faced by KFC, it is recommended that the company should be able to use an ethical management strategy that will uplift the image of the company.

4.1 Ethics is a moral standard with respect to the value of human life. All the companies have the similar moral problems. What can they do when the organisation must balancing ethics dilemmas?

First, keep it balanced. Tell the customer they must keep their alimentation balanced. Mix together daily activity, a sensible diet, and a little fun. A recipe for keeping their body balanced. It is advertising content. It will help us to possess marketing.

Second, KFC adopt the on-limits mode to invite applications for a job,and they admit the each level to work for them. Because of this, the salary is low and same employees leave. Some employees and manager who have trained leave and work for the other corporation, must change this kind of state. For example, improve the wage. It relates to the problem about trust and employment.

Third, the corporation should make the ethics firstly in the personnel problem. Utilitarianism is to say that greatest number of people the most happiness, should give employees special treatment and keep them working for corporation.

Fourth, Needless to say, the corporate executive must have a "social responsibility". In KFC, the corporate executive's social responsibility is giving customer secure food. It is a business ethics problem. At the same time, it is a problem of the own value.

In order to better sales, KFC is good at integrating the culture and the trade. In the dining room, it has children's paradise. KFC has the special service for child, the special waiter often gives some small gifts to the child, it is not for child, but for their parents. It is to say that, KFC create a romantic and brilliant atmosphere for the fashion youth men and women (maybe children's parents). In the dinning room, there are a distinctive floor, the dinner table, the bright windows, and the delightful popular music. All of these can give you a spirit enjoys.

The quality is the life of corporation; must implement the plan efficiency: first, must persevere counseling and surveillance. Then, Let the most people has the achievement feeling and the consummation safeguard system. Give the value to all of the employees. Employees and customers are both the primary stakeholders.

The inclusion of the social responsibility concept to the business sector is not only necessary to broaden the companies' involvement to social matters. The application of social responsibility to organizations is in fact a main contributory factor to their profitability and to ensure that they always follow ethical matters while doing their business.

At present, the management of KFC have already realized the growing importance of social responsibility and that integrating this concept cannot be sufficiently supported by the optimization of shareholder value.

5.0 Conclusion

Having a business organisation that considers ethical management are business which can easily gain respect and good reputation from the customers. Contrary to the belief that social responsibility undermines businesses' profitability goal, this actually help in generating profit through customer loyalty and good company image. For Kentucky Fried Chicken, the company must be able to ensure that the products that they offer are healthy and nutritional, so as to ensure also that their gain customer trust, loyalty and respect.

As a result of these, we must pay attention to applying business ethics in business management. The behaviors of stakeholders is very important for the companies, because stakeholders are those who affect or are affected by the company's activities in an indirect or by-product way.