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Ethics Issues At KFC

TABLE OF CONTENT
1.0 Acknowledgement 2
2.0 Introduction 3-
4
3.0 objective 4
4.0 KFC Background 5-
6
History 5
Internationalisation Process 5-
6
KFC in Malaysia 6
5.0 Find out the Problem 7-
12
5.1 Chickens Abuse, and the PETA 7-
8
5.2 Health Problems, 'Fried' fast food 9-
10
5.3 Protect Employee's Health and Safety, 10
as Working Condition
5.4 Job Satisfaction, as Working Condition 10-
11
5.5 I-City Problems 11
5.6 GREENPEACE Perspective 11-
12
6.0 Analysis How the Organization Handle The Issue 12-
14
6.1 Launching Kentucky Grilled Chicken 12-
13
6.2 PETA wants KFC to adopt the animal welfare program 13-
14 developed by five members of its own animal welfare board
6.3 KFC handle the I-City Problem 14
6.0 Determine the Solution 15-
16
6.1 Responsibilities to Take Care Their Employee 15
6.2 Operation Efficiently 15
6.3 Human Resource 16
7.0 Conclusion 17
8.0 Recommendation 18
9.0 References 19
10 Attachment 20-
21

ACKNOWLEDGEMENT

First of all, Im so grateful to the Almighty God for establishing me to


complete my report which is in business ethics (MGMB313) subject.
I would like to express thank and deepest appreciation to my lecturer, Madam
Faiza Binti Haji Omar, who has the attitude and the substance of a genius; she
continually and convincingly conveyed a spirit of an adventure in regard to my report,
and an excitement in regard to teaching. This report would not have been possible
unless without his guidance and persistent help in this dissertation.
I would also like to thank to my parents for their unceasing encouragement
and full support. They were so understand by giving me space and time to complete
my report as well. They also support by money for me complete the report.
Lastly, i offer my regards and blessings to all of those who supported me in
any respect during the completion of this report. I also place on record, my sense of
gratitude to one and all who, directly or indirectly, have lent their helping hand in this
venture.

Introduction
Business ethics are moral principles that guide the way a business behaves.
The same principles that determine an individuals actions also apply to business.
Acting in an ethical way involves distinguishing between right and wrong and
then making the right choice. It is relatively easy to identify unethical business
practices. For example, companies should not use child labour. They should not
unlawfully use copyrighted materials and processes. They should not engage in
corruption. However, it is not always easy to create similar hard-and-fast definitions
of good ethical practice. A company must make a competitive return for its
shareholders and treat its employees fairly. A company also has wider
responsibilities. It should minimise any harm to the environment and work in ways
that do not damage the communities in which it operates. This is known as corporate
social responsibility. There are many ethical dilemmas that an organisation face and
one of the organisations which faces major dilemmas is the Kentucky Fried Chicken.
Firstly, the main objective of this report is to provide a discussion to find out the
problem. Secondly, evaluate the relative importance of these dilemmas and how
Kentucky Fried Chicken is currently dealing with them. Last give recommendations
and strategic options to Kentucky Fried Chicken.
The main purpose of this report is to conduct an ethical analysis for KFC
Corporation. The report examines main ethical dilemmas facing KFC, specifically
including the perspective of the consumers, the suppliers, the employees and society
as a whole. Although it is the world's most popular chicken restaurant chain, KFC is
currently experiencing a number of ethical dilemmas. For instance, the dilemma
between consumers' need for healthy food and the reality of providing high-calorie
food, and the dilemmas concerning the relationship between KFC and its suppliers,
between KFC and its employees.
In order to deal with these dilemmas, KFC strives to make adjustments
according to its consumers' preference and takes appropriate measures to establish
win-win relationships among the corporation, the suppliers and the employees. The
report considers KFC's best ethical practice to be its endeavour to perform its social
responsibilities. KFC actively launches the KFC Ray Education Foundation to give
financial support to educational causes and founds the Food and Health Foundation to
subsidize scientific researches and publicity and education projects related to nutrition
and health. In consideration of the fact that KFC has given relatively unethical
performance in advertising, several pieces of suggestions are included in this report.

OBJECTIF

These report focus on ethical issues at Kentucky Fried Chicken ( KFC) .


Theyre a lot of questions that come out in mind to do a report about it. As a student
of Human Resource Management I study about business ethics so i choose Kentucky
Fried Chicken ( KFC) for do our report. In this report, i will know what kind of ethics
issues was happened at KFC, how KFC handle the ethics issues, and I was given
some recommendation to KFC how improve more to recover the ethics issues.
In this report you will able to know:
1) Ethics issues at KFC.
2) Analysis how KFC handle the ethics issues.
3) Determine the solution.

Background Of Kentucky Fried Chicken

History
Harland Sanders, founder of the original Kentucky Fried Chicken, born in
1890, just outside Henryville, Indiana. After a series of jobs, in the mid-1930s at the
age of forty, Colonel Sanders bought a service station, motel and cafe at Corbin, a
town in Kentucky. He began serving meals to travellers on the dining table in the
living quarters of his service station because he did not have a restaurant. It is here
that Sanders began experimenting with different seasonings to flavour his chicken
which travellers loved and for which he soon became famous. He then moved across
the street to a motel and restaurant, which seated 142 people. During the next nine
years he developed his secret recipe of 11 herbs and spices and the basic cooking
technique which is still used today. Sanders fame grew. In 1939, his establishment
was first listed in Duncan Hines Adventures in Good Eating.
Internationalisation Process
In 1952 the Colonel Harland Sanders begins actively franchising his chicken
business by traveling from town to town and cooking batches of chicken for
restaurant owners and employees. When the reaction was favourable 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.
In 1957, Kentucky Fried Chicken first sold in buckets. During 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. Later that year Sanders sells his interest in the U.S. Company for
$2 million to a group of investors headed by John Y. Brown Jr., future governor of
Kentucky. The Colonel remains a public spokesman for the company. In 1966 the
Kentucky Fried Chicken Corporation then goes public.
In 1971 more than 3,500 franchised and company-owned restaurants are in
worldwide operation when Heublein Inc. acquires KFC Corporation. In 1979 KFC
cooks up 2.7 billion pieces of chicken. There are approximately 6,000 KFC
restaurants doing there operations worldwide.
Kentucky Fried Chicken becomes a subsidiary of R.J. Reynolds Industries, Inc. in
1982 (now RJR Nabisco, Inc.) when Heublein, Inc. is acquired by Reynolds. In 1986
PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc. In 1997 PepsiCo, Inc. announces
the spin-off of its quick service restaurants KFC, Taco Bell and Pizza Hut into Tricon
Global Restaurants, Inc. Tricon Global Restaurants, Inc., the worlds largest restaurant
company, in 2002 changes its corporate name to YUM! Brands, Inc. In addition to
KFC, the company owns A&W All-American Food Restaurants, Long John
Silvers, Pizza Hut and Taco Bell restaurants.
In 2006 more than a billion of the Colonels finger licking good chicken
dinners are served annually in more than 80 countries and territories around the world.
In 2007 KFC proudly introduces a new recipe that keeps the Colonels 11 herbs and
spices and finger-licking flavour, but contains Zero Grams of Trans Fat per serving
thanks to new cooking oil.
There are over 14,000 KFC outlets in 105 countries and territories around the
world. And every day, nearly eight million customers are served around the world.
As a global company with a diverse and ever-changing workforce, we face
significant challenges. For example, our rapid growth in emerging markets like India
and Russia requires us to adapt our policies to these markets, and to learn from our
new partners. Building a diverse foundation at all of our brands gives us a competitive
edge and helps us operate as a local business in international markets
KFC in Malaysia
The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman.
Today there are more than 500 KFC Restaurants nationwide and still counting. Great
tasting chicken has become synonymous with KFC and has been enjoyed by
Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian
personality of its own.

Find Out The Problem


1.1 Chickens Abuse, and the PETA
Every year, KFC needs 700 million supplies of chickens for the entire world
wide restaurants. While KFC's claim that they only deal with suppliers who promise
to maintain our high standards and commitment to animal welfare. But about the
treatment of the chickens it buys, a proof of graphic evidence, a video was taken by an
investigator of People for the Ethical Treatment of Animals (PETA) had showing that
the chickens was purposely abused by the workers. The video was taking in a
slaughterhouse, at a Pilgrim's Pride plant in Moorefield West Virginia, where the
workers kicking live chickens like playing footballs, thumping them into walls,
apparently those workers do it just for fun. This does not happens once, the
investigation of PETA on KFC shows that there are so many suppliers of KFC had
committed into this behaviour. Only in United States many suppliers have involved in,
one of them is Tyson slaughterhouse. In the slaughterhouse showed that birds
purposely were burnt to death, were blown apart by makeshift firecrackers, and broke
their legs by the workers so that it can be fit into slaughter-line shackles. Tyson is
KFC's number one supplier.
Other country, the most popular issue on the abuse by the supplier of KFC is
happens on India. Chickens was found overstuffed into awfully crowded warehouse
plagued with chicken carcasses, cruel breeding practices, sick and injured chickens
but never received any medical attention, and they suffering at the hands of cruel
workers who neglected to examine even minimal ethics of animal welfare. Animal
abusing can be defined as the most serious Ethical Dilemmas on KFC.
In India, on August 20, 2003, a five-foot tall chicken complete with an
ensemble of feathers and beak hobbled on a pair of crutches outside Kentucky Fried
Chicken's (KFC) was kept in an Indian outlet in Bangalore. The chicken was brought
by PETA activists, who carried play cards reading, "Quit India" and "Stop Playing
Fowl". The chicken was placed at the centre and a peaceful protest was held against
the alleged ill treatment of birds in KFC's poultry farms. Media persons were called to
give the demonstration a wide coverage
As a result of widespread protest, in Canada PETAs new animal welfare plan
was implemented in KFCs suppliers plants. According to the new plan, 100 per cent
of chicken purchases were to be done from suppliers that use controlled-atmosphere
killing (CAK).
PETAs protest is against the cruelty and ill-treatment towards KFC chicken.
They do not intend to overhaul KFCs overall manufacturing process. Instead PETA
urges KFC to adopt animal welfare program developed by the five members of its
own (KFC) Animal Welfare Board and to adopt Controlled Atmosp here Killing
(CAK).As per PETA, The Pilgrims Pride poultry farm did not adhere to any animal
welfare standards. The chickens suffered intensely in the poultry farms before being
slaughtered as highlighted Belo.
KFC are generally fatty food made with excessive oil and additives such as
salt and sugar, meaning a large amount of calorie is present. When customers
consumed too much fast food they might become obese and develop diseases such as
diabetes, high blood pressure, strokes, and heart related symptoms due to high
cholesterol from excessive fat. Customers may also consume excessive fast food
because it is cheap to buy in large quantity. Also, research has been done proving it is
more likely for people living near fast food branches to become obese.
The chickens are slaughtered before they are 6 weeks old. At the slaughter
house, chickens are hung upside down and transferred through conveyor belts to the
killing room fully conscious. Too many chickens are dumped from the crates to the
fast moving conveyor belt that caused the birds at the bottom to get suffocated.
Unable to manage the large in flow of chickens, the workers threw away some
chickens slamming them to the walls or floors. During the processing, to remove
feathers, the live chickens are thrown into scalding-hot water.

1.2 Health Problems, 'Fried' fast food


Fried is like almost everything in KFC, the main course from the menu in
KFC is actually fried chickens. Unlike any other fast food brand, common one-
McDonalds', which in their menu French fries is just a side dish. In the past few years,
KFC has been sued by the Centre for Science in the Public Interest (CPSI), charged
with the food contains staggering sum of trans-fat. In one three-piece chicken
combo meal contains 15 grams of trans-fat, which is over the limit that a person
should have in one week. CPSI (2006) through press release said that The class-
action suit... asks that the court prohibit KFC from using partially hydrogenated oil, or
that at the very least, signs be posted in KFC outlets notifying customers that many
KFC foods are high in trans-fat. The suit was filed in Superior Court of the District
of Columbia.
These trans-fat is actually harming consumer's health, KFC as the world's
most popular chicken fast food chain, over 14,000 outlets around the world, with
more than 12 million customers eating their fried chickens every day. Just imaging,
their unethical behaviour has influenced widely against their customers. It is a serious
ethical dilemma which can be found in KFC.
In contain of the recipe there are proved that in the contain of KFC chicken
flour their use monosodium glutamate (MSG). Monosodium glutamate is one of
additional teats that impress the food or became the food more teats. Monosodium
glutamates describe that, a flavour enhancer used in savoury foods, especially Asian
foods. It contains sodium, but only a third of the amount that youd get from the same
amount of salt. MSG also includes glutamic acid (aka glutamate), an amino acid thats
found naturally in foods like tomatoes, mushrooms and soybeans and is the source of
our fifth taste umami. In fact, we eat about 13 grams of natural glutamate a day on
average, compared to only around half a gram from MSG. besides that, MSG also
have side effects it is. The symptoms which MSG is suspected of causing include
headaches, dry mouth, flushing, tightening of facial muscles, numbness, tingling,
chest pain, heart palpitations, nausea and general weakness. Most are said to pass after
a couple of hours. There are also allegations, again without scientifically supported
evidence, of it being a contributory factor in asthma, migraine, Parkinson's,
Alzheimer's and depression. For instant, MSG also can cause that became hair fall and
skin cancer if taken more of MSG. Societies for Experimental Biology recommended
it should not be used by pregnant women, infants, children, women of childbearing
age, and individuals with affective disorders.
1.3 Protect Employee's Health and Safety, as Working Condition
Every year, there are more than 5000 workers are killed and over 3,000,000
are seriously injured as a results of work accident in the world. Workplace hazard
always the main causes workers get hurts, include not only obvious categories like
mechanical injury or burns but also extremely heat and cold, skin irritants or noisy
machinery. In KFC's restaurant's kitchen, their workers facing with deep fried
machine, hot oven, cutting machine and bad air condition every day. The
Occupational Safety and Health Act (1994), is the most recent legislation in Malaysia,
to safe guard safety and health of works. KFC should abide by the rules and this act,
is ethical. When their employees feel save in their work place, firm will have good
reputation though.
For examples, poor working in KFC slaughter house its may many caused to
employees. The caused by health and safety. Working at slaughter house mostly never
wear mask. This because, many employees get lots of disease.

1.4 Job Satisfaction, as Working Condition


The work of Manuel G. Velasques (1996) emphasis that the rational parts of
the organization put a high value on efficiency: All jobs and tasks are to be designed
so as to achieve the organization's goals as efficiently as possible. When efficiency is
achieved through specialization, the rational aspects of organizations tend to
incorporate highly specialized jobs. As we known, working in a fast food restaurant is
definitely bore with keep on repeating the same jobs everyday with no exception. This
leads to job dissatisfaction to the workers, it will change their attitudes when they feel
annoyed in doing their works, this is also why some customers complaint on they got
rude services in the chain. Efficiency is achieved by understanding the workers
motivational patterns. Professor Abrahim Maslow cited in his research the 5 need
factors, for example security, social and esteem. This factors are ethical and enhances
productivity at KFC both local and internationally.
When employees happy, they will work happily and then treat their customer
better, the golden rule is to recognize the differences is cultures and economic
development of the countries. To better value KFC, the fair trade concept is to be
utilized further to firms, community involvement, targeting should be the code of
practices in KFC.

1.5 I-City Problems


The incident was happens in KFC I-City, Malaysia. This incident was happen
on 6th February 2012. The incident happens is because the customer has been waiting
for more than 1 hour but when comes to his turn, there is NO MORE fried chicken for
the customers. The customer requests the management to apologize but the Store
Manager do nothing for that matter. The issues happen when the worker shouted:
kalau mau makan, buat sendiri lah BABI. which give means do it with your own if
you want to eat, pig. The KFC I-City workers attack customers by using bad
descriptions words to the customers cause this fight happen. Employees have to be
avoiding to do attack action to the customers. As a fast food restaurant which sells
service, KFC workers have to understand customers right.

1.6 GREENPEACE Perspective


Another unethical issue raised against KFC is its link with the destruction of
the Amazon Rainforest. In May, 2006 Greenpeace volunteers came up to enlighten the
whole world about the mass deforestation in Amazon rainforest caused by KFC.
Greenpeace has come up with a term for KFC as KFC Amazon Criminal.
According to Greenpeace, KFC is fuelling the destruction of Amazon by
selling cheap chicken fen on soya grown on deforested land. Green peace
investigation clearly traced that large area of rain forest has been destroyed by direct
sales of cheap soya via Cargill by KFC , in order to sell billions of chickens to its
customer every year, at low cost. The demand of soya fed for its chicken by KFC to
Cargill has led to this unethical activity, which is affecting the global climate.
Rainforest that covered 14% of earths land area has reduced to 6% due to
deforestation, which clearly shows the high overall impact of business practices.
Greenpeace wants KFC and Cargill to ensure that animal feed they buy does not
contribute to destruction of Amazon and that none of their soya products are
genetically engineer.
Greenpeace on Wednesday accused global fast food chain KFC of using paper
packaging made using wood from Indonesian rainforests which it said was
endangering the habitat of the Sumatran tiger. The environmental group said the
chain's trademark chicken buckets and French fry boxes contained timber products
from Asia Pulp & Paper (APP), which it described as the country's "notorious forest
destroyer". To illustrate their cause, activists placed a giant KFC French fry holder
depicting company founder Colonel Sanders holding a chainsaw in his hand and the
words "KFC junking the jungle" written below on deforested peat land in Rokan Hilir,
Riau province on Sumatra. Two activists dressed in tiger costumes lay "dead" in front
of the packaging and held a banner saying "Stop APP destroying forest tiger home".
Greenpeace urged KFC to suspend its contracts with APP and implement a
zero deforestation policy across its whole supply chain. KFC is one of the most
popular fast food brands in Indonesia with more than 400 stores across the
country.Greenpeace has in recent years waged highly successful campaigns against
APP, prompting more than a dozen major international companies, such as Barbie-
maker Mattel, KFC and Wal-Mart, to drop paper packaging contracts with APP.
Deforestation accounts for 70 per cent of carbon emissions in Indonesia, the world's
third-biggest emitter, according to UN data. Estimates of the number of Sumatran
tigers remaining in the world range from 300 to 400. Several die each year as a result
of traps, poaching or other human actions.

Analysis How The Organization Handle The Issue


2.1 Launching Kentucky Grilled Chicken
According to this trans-fat issue, a spokesperson from KFC Laurie Schalow
(2007) issued a statement saying that: We take health and safety issues very
seriously. We provide a variety of menu choices and provide nutrition information,
including trans-fat values, on our website and in our restaurants so consumers can
make informed choices before they purchase our products. Our company is reviewing
alternative oil options, but there are a number of factors to consider including
maintaining KFC's unique taste and flavour of Colonel Sanders' Original Recipe,
supply availability and transportation, among others. This has proven that KFC has
initiative to take action on the issue, but yet, still have other 'profits relates' concerns,
such as in the statement stated, they afraid they might lost the unique taste thus losing
customers at the same time, and it sure will decrease the annual profits.
KFC has taken a big step in their chain's history by launching the Kentucky
Grilled Chicken. In this combo meal, contains only 395 calories, even lower than a
subway Italian B.M.T sandwich which contains 450 calories. And the main point is,
guarantee no trans-fat. KFC promote their new Grilled Chicken on the famous show
Oprah Winfrey's daytime talk show, by offering free meal using print out coupon on
the related site. The action taken was proved that KFC has strong initiative to promote
both Fried and Grilled Chicken in their chains, as people now is really concern and
sensitive on what they are eating especially on fast food meals.

2.2 PETA wants KFC to adopt the animal welfare program developed by five
members of its own animal welfare board.
PETA wants KFC to adopt the animal welfare program developed by five
members of its own animal welfare board. These advisors are the worlds top poultry
experts; they advise the meat industry in North America and Europe and believe that
KFC can and should adopt these measures.
Firstly, adopt the Animal Care Standards program. This would lower the
amount of ammonia in the air in factory farms, improve the living spaces and lighting
in chicken sheds, prohibit the intentional starving of breeding birds, and ensure that
birds are provided with mental and physical stimulation.
Secondly, Switch to controlled-atmosphere killing (CAK). This would prevent
live birds in slaughterhouses from being abused by workers, having their throats slit,
or being scalded while they are still conscious. CAK would also improve conditions
for workers and decrease contamination levels in chickens flesh.
Thirdly, Switch to mechanized chicken gathering. This would drastically
reduce the number of broken bones and painful bruising that birds endure when
factory-farm workers carelessly throw them into transport crates.
Fourthly, Breed for health rather than rapid growth, and stop feeding drugs to
chickens. This would reduce the rate at which birds suffer painful, crippling diseases
and injuries, such as broken legs, heart attacks, and lung failures.
Lastly, make all welfare standards transparent and verifiable. This would
simply ensure that the animal welfare program is being adhered to through announced
and unannounced independent audits (the results of which must be made available to
the public through KFCs Web site.

2.3 KFC handles the I-City Problem


Based on the cases of KFC I-City fight which happened on 6th of February
2012, the employees fight with the customer. Although the customers scold the
employees, the employees should not start the fight with the customers. The
employees have to understand the reason of the customer to get angry, and understand
that as the staff who work under service, customer right come first. The fault is from
the KFC but not the customers. It is unfair for the customers for waiting 1 hour and
get nothing at last without apologizes. Several KFC staff were seen attempting to hold
their colleague back after a heated exchange but the staff managed to land a punch on
Danny Ng. The employees give a punch to the customers on customers face is
recorded by a people and upload into YouTube, world largest official video sites. The
management of the food chain and Ng lodged separate police reports on the matter
two days later.
The human resources department, representing KFC Malaysia has met and
offered their apologies to Danny Ng Chee Fei, who was assaulted by a kitchen crew
member at I-City branch in Shah Alam. The fast food chains deputy president Alan
Au met Ng and his family to extend his regrets and apology during a short meeting at
Wisma KFC in Jalan Sultan Ismail. The victim, Danny Ng accepted the apology,
saying KFC reacted appropriately to the incident. Ng was also given a voucher by
KFC but declined to reveal its value.

Determine The Solution


3.1 Responsibilities to Take Care Their Employee
KFC should have the responsibilities to take care their employees' health and
safety in their workplace, what employer can and should do is offer higher wages to
compensate the risk measure by different position . A better one to ensure their
workers against unknown accident that might happen anytime, employer should
provide them with suitable insurance programs. A little bit costly, but a good one is
advise KFC to form a special team, to collect information, researching on the health
and safety issue on the working environment which where their workers facing every
day. Then come out with the results together with solution and steps recommendations
information available to all KFC employees around the world.
Excessive job specialization is undesirable for other reasons than that it places
unjust burdens on workers. There is also considerable evidence that it does not
contribute to efficiency. Research findings have demonstrated that there is a link-age
between worker productivity and programs that improve the quality of work life for
workers by giving workers greater involvement in and control over a variety work
tasks.

3.2 Operation Efficiently


KFC should make the operation efficiently like held parties involved customer
and workers quarterly, or an outstanding idea such as choose the best worker in
different country and offer them to have exchange colleague (similar with exchange
student) to work in other country's outlet with a duration one to three months with
fully allowanced by company, this sure will motivated workers to do hard work on
their working days.
Besides that, The stakeholders' management should include the improvement
in Communications, where there is possible setback the 'whistle blowing' ethic should
be applied as a strategic option whereas the recommendations would be to set up a
panel to do constant analysis on different options as the Marketing, and Operations
issues, for instance the coordination activities in Service Management, Public
Relation and Advertising techniques. The ethical theory of Technological or
Consequentialist states the end justify the means. This further is depended by Kants
ethics of duty. The consequentialism is that human welfare is best served by moral
responsibilities
3.3 Human Resource
The ethics of human resource management consists mainly of ethical issues
which emerge around the employer-employee relationship. Generally speaking, the
ideal relationship between employers and employees is one that is firmly grounded in
mutual trust and respect. A harmonious relationship contributes to an environment of
cooperation and efficiency. Training programs for employees, on the other hand, offer
chances of further development for both the employees themselves and the
organization. However, this is, in many organizations, not the case. Sorts of
exploitation, power and authority relationship, as well as reluctance on training
expenditures are common unethical phenomenon.
Adhering to the concept of people-oriented, KFC has been at the forefront of
offering training programs to its employees. According to statistics, for duration of
more than 20 years, KFC has launched numerous personnel training programs, with
combined participants of over 200,000 and total training investments amounting to
2,400,000,000. So, even when the organization, under the pressure of the financial
crisis, is forced to cut the number of staffs, the employees who are made laid-off
could land on new jobs with comparative ease as a result of high qualifications that
they have benefited from the various training programs that they have received from
their former employers. Besides, all employees in KFC are granted equal
opportunities to grow, develop and promote. Their progress depends largely on their
abilities and performances

Conclusion
In a word, it can be said that business ethical is very important to a business
organization. It can help a business organization easily earning the respect of clients
and win general acclaim. 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 KFC Company
must be able to ensure that the products that they offer are healthy and nutritional, so
that it can make sure that Kentucky Fried Chicken can gain customer trust, loyalty,
respect and the corporate image will be protected and developed.
The main purpose of this report is to conduct an ethical analysis for KFC
Corporation. The report examines main ethical dilemmas facing KFC, specifically
including the perspective of the consumers, the suppliers, the employees and society
as a whole. Although it is the world's most popular chicken restaurant chain, KFC is
currently experiencing a number of ethical dilemmas. For instance, the dilemma
between consumers' need for healthy food and the reality of providing high-calorie
food, and the dilemmas concerning the relationship between KFC and its suppliers,
between KFC and its employees.
In order to deal with these dilemmas, KFC strives to make adjustments
according to its consumers' preference and takes appropriate measures to establish
win-win relationships among the corporation, the suppliers and the employees. The
report considers KFC's best ethical practice to be its endeavour to perform its social
responsibilities. KFC actively launches the KFC Ray Education Foundation to give
financial support to educational causes and founds the Food and Health Foundation to
subsidize scientific researches and publicity and education projects related to nutrition
and health. In consideration of the fact that KFC has given relatively unethical
performance in advertising, several pieces of suggestions are included in this report

RECOMMENDATION
In this section, the report will put forward suggestions concerning the issue of
ethics in advertising as KFC, shown in the above description, has failed to give ethical
performance in this area. In recent years, KFC has constantly been subject to
criticisms for its somewhat deceptive advertisements. Making a business of offering
mainly fired food which is high in calorie, it is obviously not honest to claim any slim
benefit within its products. When designing and presenting advertisements, it is
advisable that KFC should treat consumers with a sense of responsibility and provide
an accurate and comprehensive account of its products. Such behaviours as half-truth,
ambiguity, exaggeration and deception should be completely avoided in
advertisements. It would be fine to inform consumers with nutrition and calorie
information. Ideally, KFC should seek to inform consumers fully and truthfully, using
non manipulative and persuasive techniques to sell its products
KFC should meet all legal business requirements to enhance their survival
competence. The Department for Environment, Food and Rural Affairs recommends
a maximum stocking density of 34 kg around 30 chickens per square meter, and say
that in circumstances where beak trimming needs to be carried out to prevent the birds
injuring each other, only one third of the beak should be trimmed measured from the
tip towards the entrance of the nostrils.
Lastly, for my opinion, human resources department have to take all
responsibilities. Human resources department should provide staff training program to
the employees to standardize the employees behaviour and attitudes on works. KFC
should also standardize the supplier code of conduct. Punishment should be taken to
all the employees and suppliers who obey the policies that set by KFC.

References
1 http://www.economy-point.org/k/kentucky-fried-chicken.html
2.http://simple.wikipedia.org/wiki/Kentucky_Fried_Chicke
3. Boatright, J. R. (2008) Ethics and the Conduct of Business, New York:
Prentice Hall
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