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.
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