KFC Ethical Audit Report

Kentucky Fried Poultry (KFC) founded by Colonel Harland Sanders since in 1952, he exposed his first restaurant in the tiny front room of a gas train station in Corbin, Kentucky. Today, KFC becomes successful and one of the well-known junk food restaurant in the world. KFC have managed more than 5200 restaurants in US and over than 15000 stores across the world. Every day, more than 12 million customers are offered at KFC chains in 109 countries and territories around the word. At exactly the same time, nowadays will vary compare with previously, customers are educated progressively more daintily their foods in term of healthy and healthy attitudes and behaviour. (Butod M, 2009) Furthermore, the firm's ethical behaviour also could be influence revenue and consumer's overall image of an organization. (Schroder M. J. A, 2005)

1. Fast food already demonstrates to be one of the foodstuffs lead to overweight epidemic and detrimental and certainly it contravention to KFC objective which sell the in fast, friendly environment that attracts pride mindful, health minded consumers. (www. KFC. com) KFC Corporation also encountered many of criticism about variety of ethical dilemmas from various stakeholders. These stakeholders has split into two group which is major stakeholders are including customers, employees, shareholders, and traders and supplementary stakeholders are including marketing, trade organizations, and special-interest group. (Ferrell O. C, 2008). The different honest dilemmas facing by KFC as the next

I. KFC found out providing unhealthy foods for their customer. KFC using Tran's fatty acids to fried the chickens and cooked goods. Tran's fatty acids also called hydrogenated oil that by-products of hydrogenation of liquid veg natural oils in the make of margarines and according to the FDA, this type of oils could be increases the bad bloodstream cholesterol and escalates the risk of cardiovascular system disease and diabetes. (Fonda D, 2006) Furthermore, many review report can turned out that fast food like fried chickens and french fries would be lead to obesity epidemic especially children and young ones also could induced the related health issues.

KFC with regard to lower the costs and gains their earnings with disregarded the consumers healthy because using trans excess fat can saves money due to partially hydrogenated oil can use over and over in the profound fryer. (Kramer M. J, 2006) These activities not only make KFC be landed in an awkward predicament but also influence the reputation and revenues of KFC. KFC receives many critics using their loyalty customers plus some of them even reject eating KFC again, so their world wide web profit will be decreasing as a result of drop of customers. In addition, it can make the shareholders lose their higher comes back and injuries the goodwill and confidences to KFC. Besides that, there has also happened a similar case which is their foods do not conforming to standard by KFC chains across the world such as diet scientists discovered that KFC in America usage overage chemical acrylamide that is carcinogen in the french fries (Martin R, 2002)

II. KFC chains propensity to uses the inexpensive teenage workers. Labour activities criticized that fast-foods chain often offering the lowers salary and unfair working condition to employees for those who are in dire need of occupation such as no health or pension benefits or even selecting the child labour. (Hogan D. G) Many outlets of KFC employees are students and around 20-28 their aged, the majority of them is part-time but worked like full-time staff within decreases wage. Staff unethical behavior also could damage an organization's of moral business value like what matter occurred of KFC which three employees KFC going for a bubble bathroom in the kitchen sink used to completely clean dishes and noted the functions of happen and cause heated up reaction. (www. ethisphere. com)

High employee turnover rate KFC also impact the food cleanliness and quality indirectly because staff insufficiency of training and has not yet grasp the technique of making foods and don't achieve the term and conditions of foods and environment cleanliness standards suppose to get, such as a KFC outlet in London was found out has cockroaches, bloodstream and mice at surrounding when the environmental health inspectors been to to the wall socket. They also discovered that black sticky grease caking loaf of bread roll containers and trays of organic as well chicken breast racks were protected in congealed fats and food warming devices were dirty rooster even used soiled towel to wiping preparing food surfaces. (Sky News, 2009) They obviously show that contacted the foods and environment without or insufficient experience by the employees brought the company facing lack of business ethics to consumers issues that they ignoring the meals health which is will be immediately afflicted customers healthy like a cases took place in KFC shop at Villawood store, a healthy 7 years old lady was crippled and brain destroyed from salmonella poisoning after eating a Rooster Twister from KFC. (ANI, 2009)

III. KFC misleading customers about the way it snacks chickens. KFC declare that chickens lifted for KFC endured no pain or injury and that humane treatment of the parrots is guaranteed. (Milloy S, 2003)But, People for the Ethical Treatment of Pets or animals (PETA) who focus on creature right and issues released a video segment of the poor treatment of birds by their suppliers which slaughterhouse staff jumping up and down on live birds, drop-kicking them like footballs and slamming them into wall space, seemingly for fun. Furthermore, birds beaks seared off with hot blades, deformities caused by genetic anatomist, overcrowding of coops and broken bones from being bred to be top heavy. Furthermore, birds throats are minimize and dumped in a fish tank of scalding normal water while the birds are still mindful during the slaughter. (Moore H, 2006) PETA criticism that KFC purchase about 700millions above chickens each years to the supplier and they responsibility to made certain that chickens guarded from the most severe abuses for workers and should demand that suppliers implement controlled-atmosphere getting rid of method which places the chickens to sleep by detatching the oxygen from other environment and updating it with an inert gas like nitrogen. (Donald G, 2004)

IV. The ethics of KFC advertising which misleading the consumers to believe that fried rooster can compatible with low-carbohydrate weight loss programs and eating two of fried chicken chest were more healthy than one of the sandwiches sold by Burger King. (Mayer C. E, 2004) Nowadays, individuals are concern for nutritional information in food advertisements in decision making choice for eat, so KFC advertising would be misled customers believed that KFC is healthy to them, but in reality, it raised excess weight epidemic rate scheduled to fried rooster contains higher trans body fat, cholesterol, sodium, and calories. (www. ftc. gov) Furthermore, junk food chains now including KFC aggressively advertise the concept that bigger is better which offering super-size servings of french fries, soft drinks etc or special combo involves more and large of junk food item. (www. answers. com) KFC also concerns advertising for children and youngsters to sell their food like gets a toy with buys of meals or limited edition gift idea as bait. These improve the query from consumers to KFC of the ethic of promoting unhealthy foods to their customers. (Joseph O, 2007) KFC also accused by Country wide Consumer Council (NCC) because have never labelled the dietary information on their menu and menu planks and it important to customers of healthy option especially related the surge of weight problems and diet-related illness. (Sharkey G, 2008)

2. According to Freeman, stakeholders define as "any group or individual who make a difference or is influenced by the fulfillment of this organization's goals. " (Key S, 1999) Stakeholders therefore end up being the crux an organizations successful or inability for their business. KFC with regard to satisfy the consumers demand which resolving the using trans-fat to preparing dilemmas and compromised FDA with exchanging trans-fat essential oil with more healthy soybean essential oil for partly fast-food such as finger-lickin' rooster and corn on the cob was zero grams trans-fat per serving. (www. kfc. com) KFC also subscribes with FSA to providing healthier foods programmes which with reduce sodium and saturated unwanted fat levels in their products to increasing the healthier choices on the menu and labelled dietary information can be found to customers. (www. caterersearch. com) Based on the Kant theory, always work in right attention for those who are moral people and ethics is a duty somewhat than is a implications. (Bowie N. E) KFC insufficient business ethics because they understanding previously that using the trans-fat oil will bad for customers healthy but nonetheless ignoring that until harm by publics. Although KFC chains promises that will make the changeover but only 5500 restaurants put into practice and KFC have 15000 shops around the world.

Therefore, how many people suffered illness because of eating KFC and just how many of consumers still risk one's health because of eating KFC? KFC have never applied utilitarian theory in the business which maximizes the benefits or minimizes the price by an action for any parties included but excluding damage by an action and these great things about an action may include pleasure, health, and satisfactions. KFC only is calculated to the business and shareholders income and ignore the foods quality that could direct affect the customers healthy. According to the due treatment theory, manufacturer's have a work to have special care and attention to ensure that customers interests are not harmed by the merchandise that they provide them. KFC should label the elements on the foods menu or caution to special group of customers who are unavailable because of will increase their illness-hazard. (Velasquez M. G, 2006)

From an ethical point of view, KFC have obligations toward their customer that duty to inform consumers truthfully and completely of a product or service's content because consumers had have to know and the to safety which to acquire easy access to truthful information that will help in product selection to secured from dangerous products. A corporation's honest responsibility in advertising is to see and persuade consumer stakeholders in way that aren't deceitful. KFC publicized that healthful of eat fried chickens breasts action from the advertising ethics. North american Relationship of Advertising (AAA) has a code of ethics which contrary to the false, distorted, deceptive and exaggerated promises and statements as well as picture that are offensive to the public. Therefore, KFC called a halt to that advertising after criticism by Government Trade Fee. (Weiss W. J, 2009)

Although advertising is supposed to provide information to customers but a lot of organizations make advertised try to sell products and services. Ethical issues come up whenever corporations aim for advertising in manipulative, untruthful, subliminal, and coercive ways to vulnerable purchasers such as children and minorities. These such as KFC target children marketplaces which buy foods can get toys to attract the kids, but more of these with regard to has got the extras toy and compelled their parent or guardian buy the dishes rather than that they prefer to eating the meals. Critics of questionable advertising practices claim that advertisements inform half-truths, conceal facts, and intentionally deceive with earnings and ignoring the buyer welfare like North american today; about 64% of individuals are considered over weight scheduled to eating fast-food. Customers need understandable home elevators food nutrition such as how much extra fat is in food, on standard serving sizes, and on the precise nutritional contents of foods but advertising always misleading labels. (Weiss J. W, 2009)

KFC dealer and worker using the cruelty solutions to treat the chickens triggers strong negative response from community which criticisms the slaughterhouse worker function immoral and for the sake of profitability and disregarded the pet rights. KFC officials also make immediate responses that would fire out workers are participating and increased inspects to the slaughterhouse to verify they will not repeated the behaviour and would be end their partnership if repeating. (Mcneil Jr, 2004) Different philosophers likewise have differences ideas on the animal rights issues. According to the Peter Performer in Canine Liberation, all family pets are equal and also have rights or need moral thought because family pets have mindful that capable feeling pain or pleasure, at least humans have moral work to not cause them troubled without justification. Warren also trust that pets have rights but weaker than human being privileges. Nevertheless, Kant's view humans have rights and duties because we have self-consciousness that provides a person moral standing and rationality whereas pets are not, so animals don't have rights and duties. (White J. E, 2009)

3. Today, business neighborhoods are concern to problem of corporate cultural responsibility (CSR). According to Keith Davis, communal responsibility as businesses which some decisions and activities used for reasons should without firm's interest. CSR is voluntary business integrating social, moral, and environmental concerns within options of revenue, profit, and legal responsibility that no longer of stakeholder prospects. William C. Frederick (1960) also promise should be "utilized for wide social ends and not for the narrowly circumscribed interests of private folks and firms" which resources are available to business. KFC management plainly understand that focus on healthy, quality, and socially responsibility of products an organization provided becomes the key point to draw in customers and either convenience or product steadiness no longer the unique selling factors. (www. carersblog. com)

Corporate social obligations (CSR) become a crucial part of successful in achieving the organization goal. According to Whooley, market, environment and community will be the obstacle of CSR management that will affect the reputation of business. (Jones p, 2005) KFC is focused on conducting its business within an honest, legal and socially in charge manner. They believe have responsibility to understand and minimize the impact of business on the environment without compromising functional standards or shareholder value. Therefore, energy use in restaurants, waste management, packaging and sustainable building design as the challenging for KFC in CSR of environment such as KFC in US, they successful reduced the usage in annualized savings 60000 metric tons of CO2 and it benefited the shareholders because of kept in energy costs (www. yum. com) Furthermore, KFC advocated recycle which 50% of KFC container packaging make from recycled newspaper and 95% of cardboard use behind the counter-top can also recycled. (www. kfcholdings. com. )

KFC also induces the global diversity which obtaining and research and development different skills, ethnicities, perspectives and experience of KFC affiliates are around the world to drive great current market performance. This variety including everyone has equal privileges without gender, history, country or shade of skin who are work by KFC chains. Besides that, KFC supports more than hundred of community activities and charities over the global such as appetite relief, group of emotionally disabled children and young adults and so on to handle cultural responsibility. (www. yum. com) CSR turn into a exclusive industry with KFC Organization proclaiming long set of activities. The task for KFC is usually to be proper about CSR and develop programs that provide the greatest advantage for themselves and world which to make needs on corporations that best utilize their features and resources. (Boatright J. R, 2009)

4. "Good ethics is also good business since it allows businesses to avoid outside restrictions. " (Stewart D, 1999) Thus, the advice for KFC Firm that should be ensures providing healthy products with avoided using edible essential oil without contains Trans- fats acids. KFC should be having long term ethical position which obeyed the ethical stance to guarding the health of their customers as well as they can and maintain it to future generation to assurances attaining the business's goal and morality businesses at the same time. Potential of KFC to work with the ethical management in the business can upgraded the image of the corporation. KFC can predicated on the idea of societal marketing which identify the necessity, would like, and interest of its consumers and provide the required satisfactions more efficiency such as enhances the well-being of the customers and modern culture especially in term of health nutrition. The responsibilities of KFC organizations to the culture also always need to concern that follow the honest matter during their business ongoing because nowadays, consumers belief are vary than before, they further respect to manifested an organization's on moral and responsibility behaviours, so that it will directly influences towards companies growth and success.

KFC should honestly with their customers on the issues of foods ingredients and present real information in advertise. Today, ethical elements become a crucial role and essential an organization achieve success. If customers know cheated by organizations, they will boycotts that company products and it may lead the company failure reaching their company goals. Moral theories can define that what privileges and wrong, duties must do and responsibility needed. Therefore, organizations management considers to ethical can easily gain good reputation and admiration from customers, yet, attainment of goal.

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Appendix I:

Figure is symbolize the company is figuring out the stakeholders.

Source from:

Jay Polonsky M. (1995)'Stakeholder theory approach to designing environmental marketing strategy' Journal of Business & Industrial Marketing, vol. 10, no. 3, pp 29-46

Appendix II:

Figure is represent that - organizations modify habit and stakeholders modify expectations

Source from:

Jay Polonsky M. (1995)'Stakeholder theory method of developing environmental marketing strategy' Journal of Business & Industrial Marketing, vol. 10, no. 3, pp 29-46

Appendix III: Stakeholders evaluation:

STAKEHOLDERS

INTERESTS

CUSTOMER

~Good quality of product

EMPLOYEES

~Provide adequate condition of safety and

health

SHAREHOLDERS

~Maximize their wealth

MEDIA

~Analyse the company

SUPPLIER

~Acting fairly in supplying and receiving

goods

GOVERNMENT

~Protect for every stakeholder

COMPETITOR

~Fairness in the market

FINANCIAL INSTITUTION

~Lend the amount of money and give the reduced interest

to the company

Source from:

1) De George, Richard T. . . , (1999), Business Ethics. Prentice Hall, Inc. 5th ed.

2) H. Shaw W. , Barry V. , (2004). Moral Issues in Business, Thomson Wadsworth. , 9th ed

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