CONTENT

PAGE
1.0 Introduction
2
2.0 Ethical Dilemmas
2.1 Unhealthy Oil
2.2Employees Issues
2.3 Suppliers Issues
2
2
3-4
4
3.0 Ethical Theory
5-7
4.0 The Organizations Ethical Best Practices and Values
7-9
5.0 Recommendation
9
Conclusion
10
References
11
1.0 Introduction
All of companies should be use the ethical decision to development their business on the
right way because its a behavior of company showing to the publics and also responsible
to social or public. The decision of company might be influence the company and public
if they are taking the unethical idea to run for business. Therefore, the decision makers
have to consider the benefits of company and to avoid the bad influence for public before
make any decision.
Kentucky Fried Chicken (KFC) is a well known fast food brand in the world; it was
founded by Colonel Harland Sanders in 1952. (KFC.com) KFC is a chain restaurant in
the world to selling fried chicken to customers; it has more than 11,000 branches in more
than 80 nations over the world. The products of KFC selling are fried chicken, nudges,
sandwiches, desserts, salads and so on. In addition, KFC not only selling the food also
selling the service to customer to attract them comes to having meal at there.
Ethical Dilemmas
2.1 Unhealthy Oil
The ethical dilemmas of KFC it was happened on 1995 because of used the oil which is
containing Trans fatty acids to fry the food and sell it. The Trans fatty acids is an
unhealthy oil its will increase cholesterol and increase the risk of having heart disease.
(Marivic Butod,2009) KFC is a fast food restaurant and is unhealthy food for consumers
if have fast food meals too often a week. The restaurant of KFC used the unhealthy oil
fried the food and sell it to consumers; it will effect the healthy of consumer become
worse. Its an unethical thing of KFC restaurants did it because they have to know which

kind of oil is more suitable to use and the quality of oil. The most of KFC food is to be
used oil to fry it so the quality of oil will be influence the quality of foods.
In addition, KFC didnt listed or invisible the Trans fatty acids on the ingredient label
show to public. Its an unethical thing they did because of every restaurant have to list out
the materials to the food label. The Trans fatty will be raising the people who have the
blood cholesterol as mush as saturated fat did; its written in the report of the Centre for
Science in the Public Interest (CSPI) in 1997.
2.2 Employees Issues
The employees of New Zealand planned to strike and protest because KFC has paid low
rates to the young employees on 3rd December. The ways of KFC pay the wages to
young employees is based on their age; its unfair to them because is not based on
experience or skills. The wage rates of KFC pay to the young employees who are 18
years old or above getting the minimum rate is $9.50; the employees who is under 18
year old getting the minimum rate is $7.13. The company of KFC is pay low rates to
employees if compare with Starbucks because Starbucks is pay minimum $12 an hour to
employees and is not regardless on the age.
In addition, the company paid low rates to employees but they are planning to spend
million to upgrading 98 stores nationwide of KFC. The employee is assets of company
why doesnt the KFC cut the budget of upgrade the stores nationwide to increase the
wage rates of employees. There are about 60 percents of store staff of KFC New Zealand
are under 18 years old; its an illegal and broke the labor law. In the labor law, company
cannot hire the employee who is under 18 years old is called child labor. The company of
KFC had hired the 15 years old younger employee as a store staff and pay $7.13 an hour
to the young employee. In this case, the ethical dilemmas of KFC are low wages and hire
under age employees thus company have to raise the wages rate and dont pay it based on
age. (wsws.org)
2.3 Suppliers Issues
This ethical issue was happened at outlet of India in Bangalore on 20 August 2003. The
People for Ethical Treatment of Animal (PETA) its an animal right protection
organization against KFC because they are using the chicken are full of chemical and sell
to the public. The chicken is full of chemical because an injection the chemical to fatten
the chicken at the short period. Therefore, the company can using the chicken on the
business operation and sells it to consumers; its unethical action of KFC did because it
will effect the healthy of consumer. In addition, People for Ethical Treatment of Animal
accused KFC because they found the ill treatment of birds in KFCs poultry farms.
(icmrindia.org)
Beside that, the way of KFC suppliers treat the chicken in the farm is quite cruelty in
USA. The suppliers inject the chemical or drug through the mouth of chicken to growing
faster in the short period. After that, they will cut off the mouth of chicken even its baby
chicken and will cut the wings and legs so that even cannot walk. The most cruelty is the
worker catching chicken like throwing rubbish into rubbish bin and send to the
slaughterhouse. At the slaughterhouse, all of chicken on the floor but the workers are kick
and step it like a football or hang up it. The process of slaughter is dropped the chicken
into the tanks of scalding hot water when they are till conscious after that send to branch
and fried it. This cruelty slaughter not only occurred in the USA also occurred at
Australia, Germany, New Zealand, Canada and so on. They way of KFC suppliers treat

the chicken is unethical and illegal; the consumers might anti KFC after watched the
video. (Kentuckyfriedcruelty.com)
Ethics Theory
Teleological ethics can only be judged by consequences which decision is right or wrong
and based on the moral right. If the company makes a right decision and everyone is
desirable and consequences thus become morally; if the company makes a wrong
decision it will be not consequences thus become immorally. The teleological ethics can
apply to the ethics dilemmas of KFC and how the company currently deals with the
stakeholders. (about.com) The Company of KFC has to think about direct tangible
benefits, indirect tangible benefits and intangible benefits.
First of all, KFC use the oil which is contain Trans Fatty Acids to fried food and didnt
listed it on the ingredient label, its immorally to public and consumers and not desirable.
The reason of not desirable and immorally is KFC knows the Tran Fatty Acids is
unhealthy oil but till using it. The company of KFC cannot look at the short-term period
provide the unhealthy food to consumers but they have to look for the long-term as the
future for company. (Marivic Butod, 2009) KFC has the responsibility to provide healthy
food to consumers and choose the oil which is not contain the Trans Fatty Acids. Once
the company makes a wrong decision used the unhealthy oil, the image of KFC is drop
and it was influence the income of company because they did the immorally to the public.
At the same time, the competitors will catch a timing produce new food which is not high
cholesterol when KFC was accused by used unhealthy oil. Thus, the competitors will get
more income at the time. The ways of KFC solve the problem is change the oil which is
not contain Trans Fatty Acids to fry food and provide what is the consequences for the
consumers and society needs. Nowadays, consumers are more concerning in the healthy
and nutrition food so KFC have to ensure follow the ethical standard to provide a good
quality and services to consumers and make sure is based on ethical and moral way.
Besides that, KFC have to uplift the image of company and attract consumers come to
purchases at KFC.
Second ethical dilemmas of KFC is paid low rate to young employees and hire under 18
years young be a worker. (John Braddock, 2006) KFC is a well known fast food company
in worldwide, they employer suppose to know the labor law and have to offer the fair rate
to every worker. The company can save costs on the salary its benefit of company but
they couldnt hire under age workers and paid low rates but its immorally and will drop
the image of company. The workers is assets and consequences of company thus
company have to paid fair to everyone not based on the age. Because of it, the
competitors of KFC will pay higher rates to the workers thus KFC might be facing lack
of workers problem. KFC have to be careful to make a decision because it the
competitors will indirect get the benefits if make the wrong decision.
In 5th April 2006, the biggest fast food chain of New Zealands decide and agreed to pay
and increased the wage rate for more than 7000 workers at Starbucks, KFC and Pizza Hut
and the employers were agreed increased the adult worker between 7 to 14 percents. The
significant ways of KFC deal with employees is increase the pay rate minimum $12 per
hour and not based on the age again. By the way, the 60 percents of KFC staff are under
18 years at many stores thus they will reduce the number of under age worker to adult
workers.

Furthermore, the ethical dilemma of KFC is cruelty slaughter the chicken at the
slaughterhouse and the chicken is full of chemical. Chicken is a main food in the KFC
menu and the suppliers will supply a lot of chicken to many branches a day; its will be
influence the health of consumers if they eat the chicken which is full of chemical. Thats
an unhealthy food of KFC provide to consumers and will effect heath of consumers. It
does will affect the benefits of company because the consumers will boycott purchases at
KFC since they are use the chicken which is full of chemical. (Gary L.Francione, 2008)
Because of it, public and consumers will lose the confident of KFC and they will go to
other fast food restaurants. Therefore, KFC will lose the consumers and the income of
KFC will reduce at the same time. In other hand, the way of supplier slaughter the
chicken is not a good image for the public because all of them know the suppliers
conscious, drugging and breeding bird to make it grow large at the short term; its
immoral and illegal to do it.
Besides that, KFC of supplier dealing with the PETA is will be improve animal welfare
and it criteria to reduce the number of broken bones and other injuries suffered by birds.
In addition, the suppliers allow PETA review their farm its animal welfare audit forms
avoiding council every six months. (Gary L.Francione, 2008) In addition, the suppliers
use controlled-atmosphere killing (CAK) to solve the problem of cruelty slaughter and
they are increase the labor costs at various way to ensure wont have lack of worker in the
slaughterhouse.
The organizations ethical best practices and values
Every organization must have virtue ethics too development the business in the market.
The virtue ethics is a subset of contemporary ethical theory its based on the particular
actions whether is wrong or right decision of organization. In virtue ethics, its depending
on the organization how to make a decision or morally correct action in the market. The
decision maker is an important person of organization because he or she might influence
the business of organization is on the virtue ethics way. (Matten, D & Crane, A. 2005,
p94)T he virtue ethics not only apply on the organization but also can use it for personal
like how a businessperson makes money and also be a virtuous manner to achieve the
goal of organization at the same time.
Above are few ethics an issue of KFC, but KFC is tried and solve the problem and try to
be more virtue ethics in the market. The reasons of KFC want to be more virtue ethics is
doesnt wan give the bad image to public and its morally correct action for them to do it.
Since the slaughter problem occur and appalling for public, KFC has take an action
immediately to solve the problem. The action of KFC take is wont kill the chicken
against beating it to the wall during the processing; they will ensure the processing of kill
the chicken is an ethical and morally and human treatment of the chicken. On the other
hand, the suppliers of KFC is ensure wont have the abuse problem in the slaughter or
farm and the People for Ethical Treatment of Animal will visit the farm every six months.
There are the ways of KFC is be more virtuous on the trade and try to build a good image
from consumers. In addition, the organization of KFC not only virtuous on the trade; they
are info the suppliers have to do the same thing as organization. (kfcholdings.com.my)
Its because of the suppliers will influence KFC and the quality of food.
Furthermore, the KFC will be improve the value of shareholders and make more profit in
the future but at the same time they also achieve the goal on the virtue ethics way. The

KFC also improve to provide the good quality products to consumers and more focus on
servicing for customers. (Sally Cochran, 2009) The staff of KFC has to be more efficient
and helpful when the consumer is order food thus consumers no need spend a lot of time
to queuing.
Sometimes, the behavior or action of KFC staff will make the consumers get mad
because they are too slow or keep talking to other staff so the organization have to train
them more efficient and focus on their work. Some of consumers dont like go to
restaurant because have to spend a lot of time wait for the food come thus they choose
come to KFC fast food restaurant have their meal. Therefore, KFC have to ensure train
the staff is efficient on everything like order food or service the consumers.
Moreover, the organization of KFC has to pay well to the employee and not based on age.
The employees of KFC who is stand at cashier and helping consumers when they are
ordering food; the employees have to be manner and smile to serve the consumer even
the consumers is moody or no manner. So, the organization have to ensure the staff is
serve the nicely and helpful to them.
Recommendations
Nowadays, the consumers is more focus on the healthy and nutrient and less cholesterol
thus KFC can change some of the ingredients to be more healthy and nutrient. It does will
be keep attracting consumer come to purchases. The organization have to be creative and
innovative to have a promotion or offer the new food or products to consumers to make
more variety menu so they wont feel bored till is the same menu. By the way, KFC have
to do the research what is the consumers need and wants after that only produce the new
products. In addition, the marketing department of KFC has to do some advertisement to
promote the food and have the promotion on some festival.
Besides that, the organisation of KFC could give the bonus to rewards the employees the
end of year. The reason give bonus to employees is rewards them hardworking in the year
and encourages them keep going on focus and perform well on the work. For instance,
the organisation also can provide a trip for the employees to relax and enjoy the holiday;
its make the employees more hardworking for the organisation. Because the organisation
really rewards to them who is perform well in the year. Moreover, KFC have to discuss
with suppliers and change a strategic and make sure dont have the slaughter problem
again and dont inject the chemical to make the chicken growth large.

Conclusion
In 21th century, a lot of organizations will development the business to international or
some of it will distend in the market but nobody know whether they are development
business in the ethics way. The organization has to earn profits but also have to be
virtuous to achieve the goal because not only think about the benefits of organization; the
organization also have to think about public and social responsible.
In this report, KFC is facing the ethical dilemmas about unhealthy oil, low paid rates to
employees and the suppliers problem and how the organizations solve the problem and
development the business is more virtue. After occur its, KFC is solve the problem
immediately and take a virtues action to solve the problem. The KFC is not use the oil
which is containing Trans Fatty Acid after got accused; they change the oil which is not

containing the Trans Fatty Acid. In addition, KFC has increased the wage rates to the
employees and change under 18 years old employee to adults; the suppliers change to
not so slaughter the birds and inject the drug to make it growth large. These are the ways
of KFC solve the ethics dilemmas and want to build up the image from consumers
through trade in the ethics and moral way.
References
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