Ethical Business In The Minds Of Its Customers Commerce Essay

good employment In The Minds Of Its Customers commercialism EssayThis paper aims to answer the header Has McDonalds PLC achieved its objective of existence go steadyn as an estimable affair in the mind of its customers? I chose McDonalds beca uptake it is unitary of the spectaculargest aliment outlets in the world. everywhere the old age, it has been criticised by costumers for being un healthy and not surroundal conscious.My investigation is based on a comparison of what McDonald claims to change and to spring on against the ciphererclaims posed by the public. In mark to fortify my claim, veritable(prenominal) depicted object studies of how McDonald has achieved being an honourable crease in the eyes of the consumer were presented and analysed. They argon Analysis of the McDonalds cunt fries Controersy and the McDonalds glad Meal Challenge. appointer(a) research and enquiry was done to further analyse my investigation and they ack straight offledge a primar y election research and a secondary research .A primary research was carried out in order to seek the reliance of the mint in my local community nearly the state MacDonalds has r distributivelyed as an honorable task. To further investigate on this, a secondary research was conducted use the corporations featureable card for the year 2011 in order to de marchesine if McDonalds is environmentally sustainable. Results gotten from this were analysed and it was ob respondd that 60% of the sight who answered the nousnaire were not satisfied with McDonald being an honourable confederacy delinquent to certain reasons. The remaining 40% of populate wer in support of MacDonalds being honourable.In conclusion, I realised that McDonald is really not as ethical as nearly allegations claim. With take ins to this, suggestions regarding marketing strategies, and organisational structure were accustomed at a lower place my recommendations. With these suggestions, McDonald can ind eed reach a commendable aim as an ethical job nearday in the future.Word count 295Table of contentAbstract..1Introduction3Research enquiry.3Investigation7Body8What is ethics?8Organisational complex body part of McDonalds10Case Studies on McDonalds as an unethical subscriber line and Counterclaims by the beau monde as being ethical12Result Analysis16Conclusion18Recommendation..19Bibliography20Appendix21IntroductionIn 1937, McDonalds was started as a drive-in restaurant by two br another(prenominal)s, Richard and Maurice McDonald in California. From the beginning, it was making about $200,000 per annum. However, in the 1940s the connection began to implement self- serve up policies called the Speedee constitution where consumers serve themselves and this boosted their annual earnings.Initially, McDonalds was designed for mass wargonion where people greenback up to collect their aliment. During this era, food prices were relatively low and the two brothers considered servic e and cleanliness as the paramount factors to the success of their stemma. With this growing in buisness, people started officeing interest in this business and cherished to take it on as a franchise. A franchise is an chordment where a business (the franchisor) sells the office to other businesses (the franchisees) allowing them to sell products or to use them to sell products or use the companys name (Dave Hall, Rob Jones. 2004. P.50) This system failed because at this point the Donald brothers were very open in their business dealings. In addition, this franchises formed were not able to experience up with bills set by the p argonnt organisation. This encouraged a brood of imitators that copied their business and the format it employed.However, in the early 1990s, McDonalds was facing problems referable to changing customer preferences and increasing competition. Customers were becoming increasingly health conscious and they wanted to avoid red content and fried food . They preferred to eat at other fast food outlets that offered discounts. ( nameless 2002)As at 21 whitethorn 2012,McDonalds was ranked by the Fortune magazine (Anon, 2012) as first company in the food services making him the worlds largest fast food chain, marketing primarily hamburgers, chicken, french fries and carbonated drinks and much recently salads, reaping and carrot sticks. There argon McDonalds restaurants in 120 countries and territories and they serve about 54 jillions of customers each day. (Anon, 2006)Such a success implies a clutch of responsibilities such as finding the right management style to observe the business running a good Human Resources management in order to feed the best workforce to be able to birth good services and to satisfy the consumers. The consumers be one of the most distinguished elements for a businesss success so at that place opinion should be considered. flavour at McDonalds which operates in the food industry it has to prov ide food that is in respect with consumers health, culture, taste, etc This aspect of the business is called Ethics which is a system of incorrupt principles, being in the business context we talk more of Business Ethics.Business ethics could be defined as the moral value that guide the way corporations or other business come decisions (Mark S. Putnam.2002).It is at this junction, my research suspicion Has McDonalds PLC achieved its objective of being seen as an ethical business in the mind of its customers? perplexs in. I might be a irregular prejudiced in my judgement and answer to this question as I cod been a big fan of McDonalds right from childhood. Consequently, I collect employed other sources to aid my un submited and objective analysis of this.Over the years, there sustain been a lot of cases and cut acrosss presenting McDonalds as an unethical business. The question here is how true be all these allegations which atomic number 18 laid against this company? Are there other perspectives as to its credibility as an ethical business and what be preferable suggestions as to how McDonald can be more ethical, if indeed they are currently considered unethical in the minds of the consumers? All these are going to be analysed in my essay bringing to the limelight twain sides of the coin and critically analysing mingled prominent case studies such as The McDonalds Beef Fries Controversy, and McDonalds Happy Meal Challenge. With all this in mind, conclusions as to whether McDonalds has been an ethical business leave be make and preferable suggestions abandoned as to how to boost their scene.McDonalds has to portray a good image to its customers and its employees by offering a good quality of food. This essay aims to investigate the skill of McDonald as an ethical business over the years as salubrious as its loyalty lies i.e., its profit or the thoroughly-being of the community and the environment at large. The problem is that on various acc ounts, allegations sop up been laid against McDonalds as an unethical business. Many ethical issues are overtive and are arduous to enforce and easy to neglect that is why I have come up with the title of Has McDonalds PLC achieved its objective of being seen as an ethical business in the mind of its customers?InvestigationWith regards these allegations passed on McDonalds as to not achieving the standard as an ethical business, a primary research was conducted in the form if a questionaire This was done to find out peoples opinion on this subject matter i.e whether they think they are ethical or not. I chose a stratified taste of public, because it makes the sample more representative of the whole group. The sample is divided into segments. I therefore chose a sample of 20 people aged from 17 and plus and all of them went to several(predicate) locations in the world. The questionnaire was launched on Survey Monkey (Darrell, 2012), so that everybody could fill it, and I depart make the results more general.As secondary research I searched at the McDonalds Sustainability wit and for the year 2010 and 2011 (refer appendix 1), to look at the goals that McDonalds has set to meet in terms of ethics. These goals could be included in the questionnaire for the customers to counter or to swear their affirmation of being ethical.I to a fault looked for different articles and point of view about McDonalds ethics which will be utilise to counter McDonalds opinion about its ethics. They are Analysis of The McDonalds Beef Fries Controversy and the McDonalds Happy Meal Challenge.BodyWhat is Ethics?The ethics of a business depends upon the set of its employees. The ethical stance of a business is equally to be find by the values of senior managers, directors and other important stakeholders. It will withal be influenced by codes of conduct which may operate in the industry. The term ethical is used to refer to businesses which explicitly recognise the importance of kind righteousness and the need to consider its actions upon stakeholders. This has led to the rise of stakeholder concept. Some businesses straight off take into account the unavoidably of employees, customers, suppliers and the local community as well as shareholders when making important business decisions. The benefits of this approach might include the followingIf the needs of the McDonalds employees are taken into account which is usually a higher salary they may be more motivated, more productive, more loyal, more flexible and less exchangeablely to leave. However if McDonalds chooses to focus as well much on shareholder needs might find it backbreaking to recruit high quality provide.If businesses have a higher regard for the local community they might win their support. For example, if the local community is consulted when expansions plans are announced, there may be less resistance to the construction of unsanded buildings. Having their regard for the local com munity is overly likely to improve the image of the company. In this case, McDonalds could consult the local communities about the food they serve and their origin, this will make less protestations and this will give McDonalds the image of an ethical business.If the needs of customers are satisfied more effectively there is likely to be an augment in business. For example, if McDonalds deal with complaints in a friendly and adjuvant manner, customers are more likely to return and spread the good word. atomic number 53 way of considering the impact of businesses upon society is to view all the groups alter by the behaviour of a business as a stakeholders. The stakeholders in the case of McDonalds are likely to include customers, employees, shareholders, suppliers, government and local communities.The following lines of my panoptic essay will mainly be the comparison and the analysis of most development collected from McDonalds which obviously would described itself to be an e thical against or so articles found on the internet which contradicts the version of McDonalds of being ethical. man a business is considering its stakeholders, a problem could possible arise which is the ethical dilemma. Ethical dilemma is the moral decisionsthathave to be made when choices are every bit unfavourable.With McDonalds being so popular, they have to meet the demand of their patrons, moreover at the comparable time, think of ways to make more sales, cut costs, and essentially maximize the profits of the firms.During these carry throughes, they face many ethical dilemmas concerning their consumers and competitors.Many loyal food restaurants serve foods that are chilblained to a high go content which is detrimental to the health of its loyal consumers. They are basic decisions that these fast-food restaurants like McDonalds have to make with regards to serving healthy food. Should they increase the cost of food served and provide healthy meals or serve deep-fries that can cause health hazards in the long run.Most fast-food restaurants tend to imitate fares of their competitors. For example, McDonalds started selling twisters likewise known as curly fries which was originally a product of AW. This food was very high in price at the put down of the consumers as it was unhealthy. This is unethical and these outlets should invest into Research and Development of sassy foods which would have the health of their consumers at heart rather than copying their competitors and exploiting their customers (Anon. 2008).In both(prenominal) cases, these Fast-food outlets tend to cut down the portions of food served. Many of McDonalds customers have discover that the burgers are smaller (Anon,2008). Thus they are not satisfied after(prenominal) eating the food. The company increase the price of the food in order to meet the demands of the consumers. This will then make the consumers buy more in order to be satisfied. At this point, there is a question that comes in Should McDonalds reduce the amount of food served at the same price in order to maintain their reputation of being honest or to increase the price to maintain their net profit and destroy the reputation as an unethical business?In order for these fast-food restaurants to be ethical, the decisions made could both be detrimental to them in terms of their profit margin although it would be to the benefit of the consumers. In this capitalist economy nowadays, which fast-food outlet is ready to spite at the expense of their consumers?Organisational Structure of McDonaldsTo be able to answer if McDonalds is an ethical company in the mind of its customers I am going to look at the organisations structure of McDonalds. McDonalds Corporation franchises and operates McDonalds restaurants in the world(a) restaurant industry. These restaurants serve menu at various price points providing value in 119 countries sphericly. This is ascribable to the difference in currencies and of the consumer wealth due to the different GDP per capita of these countries as well as the varying exchange rate system. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and developmental licensees and foreign affiliated markets under license agreements (Anon, Unknown).McDonalds has a centralized organisational structure. It means that the decision making and the authority are in the hands of few persons in the McDonalds head office. The franchises just about the world are dictated how to order, cook and prepare all the food from McDonalds head sterns. The headquarters likewise make decisions on the price at which the products have to be exchange (Anon, 2012).Referring to their Global Sustainability Scorecard in the appendix 1, McDonalds claims to be an ethical business by giving back to the community and the environment by operative with schools and local organisations, and by memorialisei ng how it has improve his food and how it improved the working conditions at McDonalds. According to their scorecard, in the countries they operate they have been able to trick up $ 170 million from all the countries through the McHappy Day (McDonald Corp. 2011) and $27 million from customer donations. I can actually say that McDonalds shrinks some actions for its community, but it does not actually say what they plan to do with the money they have raised and the reason why they raised money. McDonalds is undertaking actions to give itself an ethical image but it still uses the customers to collect funds instead of exploitation a part of the huge profits it makes. However, it has included fruits and ve seizeables in its menu in their restaurants in North and South the States and West Europe. This could credibly mean that they are conscious that their food is healthy enough for their customers. still McDonalds could appear more ethical in the mind of its worldwide customers if it expands the new menu into the others restaurants in the world, since McDonalds has been accused by health campaigners in America and Europe of helping to cause an corpulency epidemic.Case Studies on McDonalds as an unethical business as well as Counterclaims by the company as being ethical.While researching on the McDonalds ethics an article called McDonalds Beef Fries Controversy (Anon. 2002) was found where McDonalds was sued by Hindu activists in India because of the French fries that were falsely promoted to be 100% vegetarian, while there was some beef flavouring in it. This case could be classified as unethical, because McDonalds does not respect the religious values of Hindus, thus its social responsibility towards it customers is eluded. Social responsibility is the duty that a business owes those who are straightway or indirectly affected by its activities.McDonalds headquarter makes most of decisions and the franchises follow the orders from the headquarters. This could trinity to a problem as there might be bureaucracy and these franchises might not be honest. This affects the image of McDonald, since there is no image of what is being done in the others restaurant. Disadvantages such due to lack of concentrate organisational structure could arise as there is no control of the subsidiaries. Thus, franchises have no power to make decisions without consulting the managers due to bureaucracy.McDonalds mission is to be the favourite(a) family restaurant and it believes that this involves protecting the environment at a local and global level. McDonald strives to ensure that its subroutines today do not have a negative impact on the lives of the future generations. McDonalds goal is to achieve round-the-clock environmental feeler so it complies with all current legislation and where possible, acts in anticipation of future environmental legislation McDonalds bases its environmental program around the hierarchy of Reduce, Reuse, and Recycle and are committed to continuous review, evaluation and improvement of its program. This includes targets and monitoring and reporting on progress towards meeting them.McDonalds business impacts on the environment through-Sourcing agricultural products and other materials to serve and build its restaurants-The operation of its restaurants and administrative functions.McDonalds aim to address these impacts by-Improving energy efficiency-Minimise impacts associated with odours, noise.Previously, there were most famous environmental issue. It was suggested that McDonalds had destroyed hundreds of acres of Brazilian come downforest to make way for large-scale cattle ranching. This not only removes a valuable natural resource, but also has an impact on global warming, as the rainforest is an essential mechanism for the absorption of Carbon Dioxide in the atmosphere. McDonalds also annually produces over a million tons of case used for just a few minutes before being discarded. Traditionall y a number of ozone depleting gasses were used in polystyrene foam packaging. In the 21st century, McDonalds uses almost all recycled packaging. However, the company still faces criticism due to the amount of hook it produces. Each of McDonalds US restaurants produces 238 pounds of waste per day and each of its U.S. regional distribution centres disposes of another 900 pounds of waste per day(Kevin Thompson. 2006). This is not only overpriced to dispose of, but also difficult when considering that similar quantities of waste are being produced around the world.Aside from the pollution from factories where the food is produced, the unusable waste from nearly all the food they sell, and the massive amounts of power and energy that are required to keep all branches up and running, this corporation is destroying natural rain forests. McDonalds like to purchase their meat from privatised farms, which is not a problem in itself. The conflicts arise when these privatised farmlands are bu ilt on the land where a soaking rainforest once resided. So not only is McDonalds polluting the air, but they are destroying a large part of what would help to keep clean it out.McDonalds has also been accused for internal ethical issues related to the working conditions and treatment of employees. McDonalds employs over 1 and a half(a) million people worldwide, over half of them are under 21 years old. McDonalds has adopted age differentials betwixt adult and younger workers, meaning that they pay most of their employees less than the conventionalism adult minimum wage. For example, McDonalds pays some 16-year olds as little as $6.80 an hour. McDonalds employees also experience poor working conditions with discrimination, illegal working hours, and poor safe conditions (Kevin Thompson.2006). There is little that can be done about this due to the absence of trade unions, within McDonalds, to represent staff. If Milton Freemans theory of stakeholders is adopted, the needs and ex pectations of staff are just as important as those of customers.McDonalds employees are oft underpaid for the amount of time that they work which often extends into illegal amounts of labour hours. The farmers from which they get their food are also generally underpaid for the amount of produce and meat which they sell to the corporation, particularly considering the cost that many of these farms have regarding the environment and health of the workers, therefore the buyer power of McDonalds constraints.Over the past 30 years McDonald has been mainly criticised over one thing its food which is claimed to contribute to the increased-level of obesity in US and in the other developed countries. 1 in 5 adults are dangerously overweighting in the UK, while it was reported that 300,000 deaths a year in the U.S related to obesity. McDonalds has also been criticised for exploiting children with advertising, with the Happy Meals where there are toys, as well as colourful advertising campaig ns and promotions in schools. The unhealthy diet of many children is contributed with these marketing tactics.Results analysisI observed that most people dont have a concise opinion of what an ethical business is, thus 60% of them as channelisen in Fig 1 see it as unethical because they think that the food is unhealthy as it has as well as much fatty and oily food served and healthy food like salad are not served. The chart in Fig 2 follows up this analysis, as 50 % of people who answered this questionnaire think there are now more fruits an vegetable and the other 50% think otherwise.Results from here show that many people think that McDonald has not made a big effort to make the foods healthy as they only focus on the profit rather than the health of their customers.On the other hand, 75% of the respondents agree that, McDonalds sells food that come from sure suppliers. This is because they have read about this information in the different outlets they have been to. The other 2 5% think the diametric because they have seen unfit items like human hair in fries, among others which has made them unhappy and discontent.Being more specific, I have noted that people have differents point of view on the environmental aspects of McDonalds restaurants.Looking at the diagram above, 75% of people think that most McDonalds restaurants are not ecological, because of the amount of energy that is used for the lightning, the heating, and for the different machines that are used in the food processing. They believe that they do not recycle the paper used to serve take-away food. This 75% account for people who visited McDonalds restaurants in Europe.With this questionaire, the opinions of various people where taken into consideration. However, there might have been some bias in judgement as people might like other fast-food restaurants like Pizza Hut, Burger King, SubWay. This could have in one way affected the response presumptuousness to qestions in the questionnaire. On the other hand, people given this quesstionqire might not have bee knowlegable enough as regsrd the definition and the underground aspects of ethics. This could have led to misjudgement of Mc.Donalds as an ethical buisness.In addition, people who responded to the questionnaire have visited different oultets of Mc.Donalds, this would greatly influence their judgemnet as McDonlads is a franchise .Thus different standards might exist as they are managed by different individuals. The McDonalds in America might be different from that in theU.K , although they sell the same type of food, the managerial structure is not necessarily the sam as it is a franchise.ConclusionLooking at the analysis, made and the results gotten from the questionnaire, it can be assumed that McDonalds has failed to achieve its objective of being seen as an ethical business in the minds of its customers. Resources from the internet, journals and questionnaire have helped in examination of this question and con clusion. Articles such as Analysis of The McDonalds Beef Fries Controversy have shown that MacDonalds is an unethical business. In this article, McDonalds falsely marketed its fries made with beef flavouring to its Hindu customers without permit them know about the presence of beef comprehend as they are vegetarians.Although, McDonalds pays their workers according to age, this often discriminatory as the duties in this outfit is not necessarily assigned according to age. This practice goes against the concept of an ideal ethical business.Through this analysis made in this essay, there is another question that could arise, which will to a deeper discussion and consistent cerebration about business of nowadays, should be more carry about their stakeholders, or they should be thinking of making more profits.RecommendationMarketing dodgingMarketing Strategy could be defined as anorganizationsstrategythat combines all of itsmarketinggoalsinto onecomprehensiveplan. A good marketing strategy should be pinched frommarket researchand focus on the rightproduct scufflein order toachievethe maximumprofit potentialand sustain thebusiness. The marketing strategy is thefoundationof amarketing plan (Anon. 2012). While investigating we found out that McDonalds have claimed to make some changes which were not known by the customers because it has not been advertised, thus customers have kept seeing McDonalds as an unhealthy and unethical business. On this point we could recommend to McDonalds show to its customers that it has improved his menu for example. To be more efficient they should also undertake questionnaires to customers to find out what they think about them.Organisational structureMost McDonalds restaurants are franchisees and from my investigation we found that it is problem in terms of communication. When the head quarter emits new ideas or new strategy, franchisees might not apply the idea of McDonalds headquarters therefore the franchises could give an u nethical image to the customers which are believably not the aim of the head quarter. So what McDonalds could do it to ask for report from the different McDonalds restaurants in other countries of the different changes they could have decided to do. This will help McDonalds to be more concerned and involved in what is mis draw in these other outlets around than world.BibliographyAnon. (Unknown).McDonalds Corp. 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