McEthics in Europe and Asia

BUSINESS ETHICS

CASE STUDY

McEthics in Europe and Asia

Submitted By : JUSTIN TOM                         Submitted to: Dr. Srirang Jha

ROLL NO: 24/142

SECTION D

Q1. Set out the main criticisms that have leveled at McDonalds in Europe. Its replication in India and differences predicted.

Ans. McDonalds is a multinational corporation, the market leader in its industry. However, there are many who are not so positive about the corporation’s approach. They have criticized the company for its standard far of high calorie burgers and fries that may saw as a major cause of spiraling obesity rates, especially among young people.

                      The accusations involved that the company ‘exploits children’ with its advertising; was ‘culpably responsible’ for cruelty to animals strongly antipathetic to unions; paid its workers low wages; falsely advertised its food as nutritious and risk the health of its regular long term customers. Among the arguments made by the critics were that the company had failed to provide a balanced menu, that it provided insufficient nutritional information and guidance, and that it actively encouraged consumers to make unhealthy choices, for example by promoting ‘supersize’ portions.

These criticisms are less likely to replicate in Asia mainly because of the eating habits of the people and the lax law towards the health of the people. The company has shifted its unhealthy practices in India by targeting young children with calorie dense food. But the overall emphasis on healthy eating, exercise and balanced lifestyle has yet to be actively promoted to anything like the same extent in Europe.  The government’s role will be crucial in protecting the health of its citizens. The activists and regulators have to strongly challenge these fast food companies to the same extent as they were attacked in Europe. But the growing pressure is clearly evident.

Q2. Describe the tactics used to respond criticisms. Will these work to the same degree in Asia?

Ans. McDonalds did not stand idle but responded the critics by launching a substantial turnaround strategy in 2003. The firm dropped its supersizing options, and put a range of healthy options in the menu, including salads and grilled chicken flatbreads porridge for breakfast. The campaign was backed by booklets  detailing the new menus and healthy options for children. It also launched sports initiatives for young people and also sponsored the EUEFA EURO 2008.

                              These tactics if used in Asia will definitely help the company in building a strong reputation in the mind of the people. If the company promotes health issues prevailing in Asia with balanced lifestyle, there is a mighty chance for the company to fight against the criticisms and come out strong just like it did in Europe. Therefore McDonalds strategy will definitely be a success and will help them to overcome the challenges in the future in Asia.

Q3. Should McDonalds offer healthy alternatives everywhere or only where it is criticized? What if customers don’t want healthy options?

 Ans. McDonalds must try to offer the healthy alternatives across the countries where it operates in order to expand and refine the business globally. In order to achieve genuine sustainability in the world, the company must try to protect the rising health issues of the people. The company should promote healthy eating habits and proper nutrition to all the countries it operates in order to avoid criticism later.

                                 In the case where the customers don’t want healthy options, there also the company must try to create awareness about the health issues and curtail the obesity epidemic. Such difficulty raises the risk of exercise related problems such as diabetes and heart disease. Therefore it is crucial for the company to maintain its standards by committing to protect the value of the society.

Q4. How could McDonalds avoid criticism in the future? Can the company present itself as an ethical corporation?

Ans. MacDonalds can avoid criticism in the following ways:

• Make sustainable food a mainstream issue. Making our food system, including the fast food industry, more sustainable should be a major concern for congressional members, and the public at large.
• Consider the economic implications of food policy.
• Change market mechanisms.
• Support small local businesses.
• Slow down and rethink the value of ‘convenience.
• Use locally sourced foods as far as possible
• Vary the menu to use seasonal ingredients
• Choose foods from more sustainable production systems, such as Fairtrade or organic
• Reduce the amount of salt and fat in the food
• Provide customers with nutritional information (e.g. salt and fat content) on menus
• Use recyclable materials for takeaway packaging
• Always pay a living wage and provide good working conditions

Ethics in business plays a vital role in the growth of company due to its influence on profit and hence progress, irrespective of the size of the organization. Business ethics is a theory of the relation between a moralistic business and a moralistic society and that’s how MacDonalds can avoid its criticism in the fiture. Also, it is the study of fair business policies, activities, behavior, functioning and practices within an organization regarding issues that may be potentially decisive where the McDonalds should strive to achieve.