An ethical dilemma evolves when the choice between alternative actions with moral content is unclear. Whether a specific behavior is right or wrong, ethical or unethical is often determined by the concerned stakeholders and an individual’s personal ethics. Consequently, values, judgments, and complex situations all play a critical role in ethical decision making (De George, R.T. 1999). Due to busier consumer lifestyles and dual-working families with children, emphasis is increasingly being placed on quick meal solutions (). People today concerned more about their health and body figures. However, due to research, nowadays fast food may cause obesity, especially KFC. Furthermore, many health organizations encourage people to concern more about their healthy and body figures. Since KFC operates until now, it only gains the bad reputation of a fast food that provides greasy unhealthy food. While fast-food retailers are not alone in feeling the pressure for multi-nationals to “clean up their act” (), fast food in common with any food, has the potential to impact directly and visibly on people's well-being like obesity. Act utilitarian is flaw because its claim of giving the greatest happiness to the most people is only temporary. Over a period of time most of the same people will have the greatest unhappiness due to poor health. KFC comes out with new Kentucky Grilled Chicken which has fewer calories, fewer fat grams, and less sodium than original recipe chicken. It is better option for health-conscious customers. This new product is right as they tend to promote happiness through serving customers with nutrient food. The ethically correct action is the one that will produce the greatest amount of pleasure or the least amount of pain (J.Brooks, L., & Dunn, P., 2009).
For marketers, ethics in the workplace refers to rules (standards, principles) governing the conduct of organizational members and the consequences of marketing decisions (Ferrell, 2005). Therefore, ethical marketing from a normative perspective approach is defined as “practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders (Murphy et al,. 2005).
Therefore, as for policies on marketing of food to children, KFC comply with all the guidelines which ban the sponsorship by fast food industries of children’s TV programmes and fast food advertisements during children’s TV programmes. KFC take responsibility to help customers make educated choices when it comes to choosing their meals, including helping them become aware about the importance of a balanced diet and good nutrition. The nature of food production and processing is becoming more important to consumers nowadays (; ). KFC has developed nutritional content fact sheets of their products as required by the recent national fast food regulations. In 1962 President John F. Kennedy delivered a “Special Message on Protecting the Consumer Interest,” in which he outlined four basic consumer rights: the right to safety, the right to be informed, the right to choose, and the right to be heard. These came to be known as the Consumers’ Bill of Rights (Ferrell et al,. 2005). Consumers have to right to know the nutritional labeling to make sure the product is in good nutrition.
Besides that, the corporate image and reputation are damaged because of the law suit by PETA and huge ruckus by the public. Stakeholders are considered in the decision based on how they affect or how they are affected by the corporation (Weiss J.W., 2002). Public awareness of animal welfare issues and subsequently the affected economic benefits have had significant impacts on the relationships between contemporary organizations and their shareholders and or public opinion. Concerns for humane treatment of animals have always existed. Stakeholder’s expectations and demands regarding the standardized guidelines of animal treatment are increasing. Public activist groups such as People for the Ethical Treatment of Animals (PETA) is said to be the biggest animal activist group in the world. This causes stakeholders and potential shareholders to lose confidence on KFC and they might fail to raise funds from public. Moreover, (Florida Gulf Coast University, 2008) indicated that KFC is losing part of their loyal customers because of the petition held. The affected economic benefits have had significant impacts on the relationships between contemporary organizations such as McDonald and their shareholders and or public opinion. They afraid KFC might drag them down and the public will categorize them together as the unethical company along with KFC. It will affect all business in other countries where KFC operates – its reputation and turnover and profit
KFC is seems trying to maximize their profits without considering for their customers. Kant’s philosophy also suggests that “it is the duty of human beings to do the right thing”. If based on Kant an action is only truly ethical if it ethical motivated. That means actions cannot have elements of self interest. The purity of motive of the stakeholders is taken in consideration in regards to this to measure their honesty. Being in a fast food industry, suppliers are directly involved in customers’ trust and thus honest stakeholders are needed, (Frederick R., 2002). Company should give importance of the ethics rather than making profits. As a result of commercialization, animals have been sacrificed for the purpose of being bought and sold by wholesaler to consumers.
However, Activists of PETA distributed balloons saying “Boycott KFC” outside a Connaught Place outlet. As according to Acton (1950), the wrongness of cruelty to animal is questioned on whether it depends upon the animal’s suffering or upon the badness of the human states of mind that such cruelty involves. These are the reasons why many customers lose confidence and refuse to eat at KFC when this issue is brought up by the public, thus lower their sales. Therefore, the profit of KFC Corporation had been decreased.
PETA excerpts from Peter Singer stated that basic principle of equality does not depend on equal or identical treatment but equal consideration. This implies that the animal’s capacity for suffering is the vital characteristic that gives them the right to equal consideration. Hence, KFC purchase chickens through suppliers that use ‘controlled-atmosphere killing’ (CAK). It works by replacing birds’ oxygen with a mixture of nonpoisonous inert gasses to gently put them “to sleep” (Gary L. Francione, 2008). This reduces the number of broken bones and other injuries suffered by the chickens. CAK improve the conditions of workers and decrease contamination levels in chickens’ flesh. KFC also adopted a new standard to address the breading, hatching and raising of the poultry at the farm level. KFC guidelines call for its suppliers to house birds in shelters which are clean and protective. Suppliers are needed to maintain the comfort level of the birds and birds should be free to roam throughout the shelters. ()
Discerning customers are unlikely to be loyal to a business that offers dangerous or unreliable products. In the long run, unethical business is less likely to succeed. Therefore, due to the genetically engineered for faster growth, suppliers must comply with the KFC policy which is they are not allowed to use hormones and steroids for any purposes, including improving growth in chickens. Antibiotics are also prohibited by KFC as it is significant to human health. KFC recommended suppliers to provide proper nutrient and feeding to promote health of the birds. (http://www.kfc.com/about/responsibility.asp)
On the other hand, approaching ethics from an organizational perspective assumes that establishing organizational values, codes, and training is necessary to provide consistent and shared approaches to making ethical decisions (Ferrell and Ferrell, 2005). The KFC’s suppliers must have a documented program for animal welfare which includes a designated program leader, formal employee training, and a system of regular self-audits and record keeping. The chickens must be in good health or else corrective action must be taken by the supplier. KFC made sure that transport crate should not be over-filled and have enough space for birds to lie down.
Moreover, KFC is also expanding its product line by offering a new People for the Ethical Treatment of Animals (PETA) approved “totally cruelty-free” KFC faux-chicken sandwich that will come in a wrap with non-vegan mayonnaise. KFC also has formed an animal welfare advisory council and promise to only deal with suppliers who is ethical. KFC allowed People for the Ethical Treatment of Animals (PETA) to review its animal welfare audit forms every six months to rebuild the public confidence towards KFC.
- KFC’s ethical best practices and values
Marketing can be viewed more as a network of relationships providing skills and knowledge to all stakeholders (Vargo and Lusch, 2004). From this perspective marketing ethics would be an important part of the strategic planning process (Greenley et al,. 2004). Besides that, KFC also takes it Corporate Social Responsibilities priority and makes a dedicated effort to fulfil its tasks in every area faithfully which is benefit to all its stakeholders. This logic is captured in the new definition of marketing developed by the American Marketing Association (2004) which states that, “marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders”. KFC take Corporate Social Responsibility (CSR) in areas of the community, the marketplace, the workplace and the environment.
In Malaysia, KFC provided sponsorship in cash to those in need of a helping hand. There are some of KFC’s community-related initiatives in Malaysia such as Projek Penyayang KFC, Deepavali at Rumah Hope with KFC, Be The Movement – Walk For Charity, Buka Puasa With Staff and the Less Fortunate, Yacht Regattas, I-Futsal, International Kite Festival, Tijarah Ramadhan. There all included charity, donation and organize open house dinner particularly to those less fortunate, elderly and orphaned. In American, KFC participated in a very special day of activities with a group of mentally disabled children and young adults in AmRest’s home town of Wroclaw. Employees learned external knowledge about their community especially mentally disabled children. They have a fun time and actually worked closely with the children’s teachers and therapists in conducting daily rehabilitation activities. ()
One of the most important factors to be considered by an organisation is to make sure that they always follow ethical standards by serving quality products or services among customers. KFC has made it their responsibility to consumers that they will provide quality chicken in a fast, well-organized way. Furthermore, they also make sure that their meat comes about ethically and through humane treatment. KFC has made statements to the consumers of KFC as the chickens will not be treated unethically. Moreover, KFC sponsors a reward for senior citizens, those who live life to the fullest and are recognized in their community. KFC also has the Colonel's Kids program, a charity organization that helps kids become educated and grow up in a better world. It addresses the child care crisis and steps up to the plate to help out where possible. Scholarships and diversity programs are a part of KFC's social responsibility as well (KFC website, social responsibility).
5.0 Recommendation and strategic options
A successful marketing strategy has not always been associated with meeting the needs and demands of all stakeholders (Miller and Lewis, 1991). Unfortunately, most approaches to market orientation select to elevate the interests of one stakeholder—the customer—over those of others (Ferrell, 2004). KFC should also emphasis on consumer health, quality and social responsibility initiatives. Nevertheless, animal cruelty is wrong because we are hurting innocent animals. Ethical dilemmas it can have on the business of KFC not only in the country it operate but can also affect business in other countries where KFC operates.
Chickens are the most abused animals in poultry industry. It is because there are very few laws in place to protect them. It is impossible to stop the public from eating KFC now but we can lessen the pain caused to them. In order to minimize the cruel method of killing the chickens, a scientific expert success to excogitate a less cruel way kill the chickens. According to Dr. Mohan Raj (2004), gaseous stunning the chickens to perform slaughter, will help the chicken dead more comfortable without causing avoidable fear, anxiety, pain and distress compare to use the standard poultry industry method. McDonald is one of the examples that use this method in slaughtering poultry. This gives a good image to the public since they show a certain level concern to animal welfare.
PETA believes that the best solution to this problem is people go to vegetarian. PETA in Canada has success by organizing protest campaign against the KFC to become vegetarian. However, some of the customers still prefer to eat meat so it is impossible KFC change the menu from chicken become vegetarian in one day. So KFC produced a new menu “vegetarian chicken” to the public. (http://www.peta2.com/TAKECHARGE/t-kfc_canada_veg_chicken_sandwich.asp)
Many firms have their own blogs with many stakeholders requesting the formation of an ethics committee to create unified standards. KFC should organize an own blog as well to encourage people to become an online activist in order to spread out the news about dissatisfactions of KFC to public.
Conclusion
As a conclusion, ethics is necessary for a business to become more significant and grow successfully. A business can impact on the lives and circumstances of people through bringing jobs, creating wealth and inspiring others to grow their businesses. Therefore, if an organization cannot understand the business ethic well, it may ruin the business itself and leave it with a bad reputation.
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