The Business ethic of KFC and McDonald

A company has its responsibilities to its consumers, its suppliers, its employees , its shareholders as well as the local community and society in general .This article I choose KFC and McDonald’s which both are Food and Beverage industry to analyse the business ethics base on ethical theories .

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Business ethics means the application of ethical standards to the business behaviors . Business ethics has become an increasingly important part of this global conscience .(Freyne, 2009 ;Gilmartin, 2008) 1 Introduction

Kentucky Fried Chicken ,as know as KFC, is the famous American chain fast food restaurant which was founded in 1952 by Colonel Harland Sanders .And He is also the logo of KFC . KFC is affiliated with Yum brands now and formed a strategic alliance with Pepsi , (some exceptions, such as South Korea, Japan sales Coca-Cola.)

There were about 17000 stores by the end of 2012 . ???Like KFC ,McDonald’s Plaza is also the world famous chain fast food Corporation which founded in Oakbrook,Illinois 1954.It has thirty thousand stores approximately around the world .Its main products are humburgs, fried chicken, aerated water, salad and so on. It stand for a kind of American life style in many counties .

2 Comparation of KFC and McDonald’s practices These two companies are the world’s most influential brand of fast food . Because they are competitors to each other ,they formed different strategies and concepts .

As one of Marketing mix strategy , McDonald’s pricing according to the consumer perception of consumer perceived value ;KFC pricing refers to competitors’ price , the purpose lies in the market competition .The operation principle of KFC is launch new products constantly or redesign old products for consumer’s new taste .To McDonald’s ,only 4 words: clean, fast, quality, service ,every word has its detailed explanation and rules. In terms of these two aspects , I’m more inclined to McDonald’s .

But they also got some events violate consumer rights and interests which happened in recent years . For example:On July 4, 2010, US media reported that McDonald’s chicken McNuggets, containing mud glue and chemical composition of oil or namely polydimethylsiloxane and TBHQ . In July 2011, the event of Kentucky Fried chicken used soybean milk powder to make soya-bean milk caused many dissatisfaction .

Analysis of these two corporations will use 4 relevant ethical theories , they are utilitarian approach , rights ethical approach, Justice ethical approach and virtue approach .
3.1 The utilitarian approach

Utilitarianism, namely the utilitarian is a theory of moral philosophy .Advocating the pursuit of “Maximum Happiness” .Main philosopher are John Stuart Mill (John Stuart Mill), Jeremy Bentham (Jeremy Bentham) and so on . The utilitarian approach means that promoting the most value of the whole while reducing the harm to fewest individual by using ethical actions .It is almost the oldest ethical theory .

Different from general ethics, utilitarian don’t consider the personal behavior motive and means, only consider a behavior of results on the influence of the maximum Happiness. It consider that happiness and pain can be conversion ,pain is the minus happiness. Organization can use it to ensure the maximum profit of stakeholders. ???In China ?McDonald’s has two times rise in price in recent years .

The first time was in early 2012, McDonald’s has announced that there will be a adjustment of McDonald’s restaurants all over the country of the some food prices, the range of the price adjustment is in the 0.5 to 2 yuan , involving the staple food, beverage and sweets and so on since January 12, 2012. McDonald’s said, “rise in price is because of the cost of the food and other structural continues to grow.”

The second time is On May 13, 2012 , It rised the price of Cheese and egg McMuffin package from 6 yuan to 7 yuan ,but over the past half a month,it can’t find any statement in the price rising of McDonald’s in open channel .

The behavior of price rising can help McDonald’s get more profit ,maybe most of consumers even didn’t know about the price rising or what ever 6 yuan and 7yuan do not have any differences to them . But in my opinion , A company must have the corporation society responsibility , announce to customs is the significant thing which could stand for a rigorous and responsible to the enterprise. 3.2 The rights ethical approach