INTRODUCTION
Kentucky Fried Chicken (KFC), founded by Colonel Harland Sanders in 1952, is a leading fast-food chain renowned for its iconic fried chicken With a diverse menu that has grown to include various fast-food offerings, KFC operates in over 140 countries, solidifying its status as one of the largest fast-food franchises globally.
KFC, despite its global popularity, has encountered significant ethical challenges, particularly regarding animal welfare, which have raised questions about its business practices These ethical dilemmas and scandals have attracted public scrutiny and criticism, ultimately undermining customer trust in the brand However, KFC remains committed to adapting and innovating in response to these concerns, striving to uphold its status as a leader in the fast-food industry This article serves as a case study on the complexities of promoting ethical conduct in business.
ABOUT KFC
Core Values of KFC
There are three key house rules at KFC:
“At KFC, we have a passion for food and serve it with pride.”
KFC makes sure to satisfy every customer and serve them as friends so that everyone leaves happy.
“Our food is always craveable We are the original fried chicken experts, and everything we do celebrates our passion for serving finger- lickin’ good food.”
KFC distinguishes itself from other fast food chains through its unique recipes and commitment to high-quality ingredients, particularly its freshly prepared chicken crafted by skilled chefs.
KFC’s Ethical Responsibilities
The KFC Group stands out for its commitment to fulfilling its mission, making a genuine promise to put in the effort required Unlike a distant vision, KFC is dedicated to actively serving the key stakeholders who impact their business, including customers, partners, and employees.
Some of the missions that some KFC franchise companies around the world have launched are:
• “To be the leader in western style quick service restaurants through friendly service, good quality food and clean atmosphere”
• “To maximize profitability, improve shareholder value and deliver sustainable growth year after year”
• “You keep employees longer, they are happier, and they work better for you”
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
KFC has implemented a higher minimum wage for its employees, guaranteeing that all staff members receive competitive salaries that reflect their dedication and the effort they invest in their assigned duties.
KFC fosters a culture centered on the principle of "How we win together," promoting unity and collaboration among its team members This collective spirit motivates employees to work together towards building a thriving company that prioritizes customer satisfaction and instills pride in every member of the KFC family.
KFC values its employees, recognizing that each individual can have a significant impact on the company By actively listening to and respecting contributions from all team members, KFC fosters a supportive work environment Additionally, the company is committed to helping employees advance their careers while promoting a healthy work-life balance.
KFC Vietnam is committed to empowering individuals to reach their full potential by fostering a culture of creativity and responsibility Each role begins with the question, "What can we do to achieve results?" This approach inspires employees to contribute their unique ideas and enthusiasm, ultimately enhancing the collective strength of the team.
KFC employees receive a membership card that offers exclusive discounts, including a 10% discount at the partnered coffee shop and a 20% discount on food purchases at KFC locations.
• A clear and open career path to becoming a restaurant manager.
• Working in a dynamic environment, helping employees develop communication, problem-solving, and work management skills.
All products and services throughout the supply chain are sourced ethically and through sustainable methods.
The company prioritizes ethical labor practices within its supply chain by partnering with certified suppliers that adhere to fair trade standards KFC is dedicated to maintaining high quality by strictly following food hygiene regulations, ensuring that the chicken used in its products is raised without stimulants.
During the avian flu crisis, KFC has implemented proactive measures to guarantee the quality of its ingredients, including utilizing reserved chicken when necessary.
KFC has prioritized customer health by switching from soybean oil to healthier alternatives, aiming to lower the risk of obesity and cardiovascular issues Additionally, the restaurants utilize specialized test paper to monitor the oil's condition and ensure its quality.
KFC Vietnam only chooses reputable and quality raw material suppliers, affirming the quality of its products with quarantine certificates.
In addition to complying with basic environmental laws, the company is actively undertaking initiatives to reduce its carbon footprint and investing heavily in being environmentally conscious.
In December 2008, KFC transitioned to modern microwave ovens and reduced frying practices to promote environmentally friendly products that enhance consumer health while boosting the company's reputation among customers.
All stakeholders, including suppliers, employees, and distributors, are treated with respect and fairness.
KFC, while operating as a franchise corporation, actively oversees its business partners to ensure clarity regarding their obligations and responsibilities The brand emphasizes a unified business philosophy that guides managers and employees towards a common goal, fostering understanding and collaboration to enhance operational efficiency and minimize misunderstandings.
KFC prioritizes customer retention by enhancing the quality of its products and services With a strong focus on quality, the company trains its employees to deliver exceptional customer service To align with customer expectations, KFC conducts regular surveys to gather feedback, using the insights gained to continually improve its offerings.
KFC is dedicated to ensuring customer satisfaction and delivering valuable benefits to all stakeholders involved in its operations, while also striving for recognition The company acknowledges its responsibilities to both the market and society.
• Providing customers with fast and delicious food, served in a friendly environment, to attract smart, knowledgeable customers around the world.
• Maximize profits, increase shareholder value, and deliver steady company growth year after year.
To attract and retain top talent, it is essential to recruit and develop employees with exceptional abilities by offering favorable working conditions and strong leadership Implementing performance-based pay, an appealing benefits program, opportunities for career advancement, and ensuring high job security are key strategies for stimulating and rewarding employees effectively.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
CASE 1: KFC’S 2017 DILEMMA
Background of The Dilemma
In 2015, McDonald's announced it would stop serving chicken raised with human antibiotics, responding to pressure from environmental and medical organizations These groups expressed concerns that the use of medically important antibiotics in food animal production could pose risks to public health.
Food producers administer human antibiotics to livestock to promote growth and weight gain, but this practice poses significant health risks The transmission of these antibiotics to consumers contributes to the emergence of drug-resistant germs, rendering some antibiotics ineffective for treating human illnesses The overuse of antibiotics in food animals is linked to a rise in resistant bacteria strains, which are responsible for approximately 23,000 additional deaths and $55 million in healthcare costs annually, as reported by the US Centers for Disease Control and Prevention Consequently, the World Health Organization and the US Food and Drug Administration recommend avoiding antibiotic use in food animal production to combat antimicrobial resistance.
At that time, KFC’s dilemma was either to support the trend or to ignore it, and both options were potentially unethical and harmful.
KFC's Initial Action
When the news about McDonald’s decision appeared, the organization’s representatives were either unavailable for comments or refused to explain anything.
Moreover, the statistics on who KFC buys chickens from and how much it buys annually were not disclosed.
In 2016, the Natural Resources Defense Council (NRDC) published an annual scorecard evaluating the antibiotic use policies of the 25 largest fast food and fast casual restaurant chains in the United States, revealing that the number of chains receiving passing grades had doubled from the previous year.
Despite the leadership efforts in the industry, KFC has consistently failed to take necessary actions to combat antibiotic-resistant superbugs, receiving a failing grade for two consecutive years, unlike its competitors.
Subway, Chick-fil-A, McDonald’s, Wendy’s, and Taco Bell are taking significant steps to prohibit the routine use of antibiotics in their chicken supply, demonstrating a commitment to improving food safety and public health.
In response to growing health concerns, 350,000 consumers petitioned KFC to stop using antibiotics critical to human medicine in their chicken supply; however, their pleas went unanswered.
KFC's Final Decision
In May 2017, KFC announced its commitment to serving chicken raised without antibiotics, a policy that will impact 4,200 restaurants and approximately 2,000 domestic chicken farms This "no antibiotics" initiative will be tailored to the specific conditions of each country The company's leadership acknowledged that while implementing this change may lead to increased costs, KFC is dedicated to managing these expenses effectively without passing the full burden onto customers.
Effect of The Decision on Major Stakeholders
KFC's decision to refrain from purchasing chickens from suppliers that utilize antibiotics could have significantly impacted the company, potentially resulting in millions of dollars in expenses for necessary modifications to its supply chain.
KFC's policy change regarding antibiotic use in poultry is poised to significantly impact the industry, as the chain, owned by Yum Brands, sources chicken from numerous flocks for food safety According to Lena Brook from the Natural Resources Defence Council, suppliers that refuse to eliminate antibiotics may face accusations of compromising public health If major players like KFC choose not to purchase from these suppliers, it could compel them to cease antibiotic use entirely Despite the challenges posed by KFC's decision, some suppliers are willing to adapt, with Tyson, the largest poultry producer in the U.S., announcing its intention to stop using antibiotics in farmed chicken diets by September 2017.
Advocates for ending certain practices have effectively advanced their agenda, as demonstrated by KFC's response, indicating their ability to influence and reshape industry standards in the food sector.
Concerning the customers, they may feel safer now knowing that KFC adheres to the antibiotic-free-chicken policy.
KFC's Two Options
There are probably two options KFC could choose.
KFC could have enhanced its reputation by refusing to partner with suppliers using antibiotics in food animal production, which would resonate positively with health-conscious consumers and opponents of antibiotic use This stance would not only demonstrate the company's commitment to customer health but also provide a competitive edge in its market image However, this decision might have led to significant challenges, including the need to establish new supply chains, potentially harming existing suppliers and complicating the search for suitable alternatives.
An alternative approach could have been to maintain the original stance and avoid commenting on antibiotic use altogether Many companies often misrepresent or conceal facts to cover up mistakes, a common practice in the industry However, research shows that transparency and honesty are far more effective strategies (Crane and Matten 460) KFC's efforts to address these issues illustrate the importance of open communication in building consumer trust.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
KFC's recent decision reflects a strategic business move that aligns with the evolving preferences of today's consumers, who increasingly prioritize their values when making food choices Research indicates that diners are seeking transparency in food production, better ingredient quality, and ethical practices from the brands they support By adhering to FDA guidelines and addressing concerns surrounding antibiotic use, KFC has reassured its customers about their commitment to safe and responsible food sourcing, thereby enhancing consumer trust and loyalty.
KFC's Achievements
The 2017 NRDC Report showed that among 25 ranked brands, KFC improved the most over the last year, earning a “B-” compared to 2016’s “F”.
In 2019, KFC proudly announced that it had achieved its goal of sourcing 100% of its chicken raised without antibiotics critical to human medicine This milestone makes KFC the first major chicken chain to apply this commitment to bone-in chicken, which constitutes approximately 60% of its menu offerings.
KFC’s execution in less than two years is commendable considering the chain received an
“F” rating from advocacy groups for its antibiotics policies less than three years ago With nearly
2,000 farms involved – most of them family- owned and managed – this transition was no small feat This success shows a great statement of commitment and capacity to drive positive change.
With more than 4,000 U.S restaurants, KFC’s announcement is a big step for the antibiotics-free movement.
CASE 2: CHICKEN ABUSE
Chicken Welfare
Since the late 1990s, KFC has encountered significant protests from People for the Ethical Treatment of Animals (PETA), an organization dedicated to animal rights advocacy.
In 2004, an animal rights organization engaged in a protracted legal battle with KFC unveiled a shocking videotape The footage depicted workers at one of KFC's suppliers abusing live chickens by jumping on them, drop-kicking them, and slamming them against walls, seemingly for amusement.
Acts of cruelty towards chickens include suffocating them with latex gloves, tearing off their beaks, and spitting tobacco juice into their mouths Additionally, some workers engage in horrific practices such as decapitating birds to use their blood for graffiti and plucking their feathers for no justifiable reason.
An undercover investigator revealed shocking animal abuse at KFC suppliers, where birds were mistreated and crammed into filthy conditions These chickens were bred and drugged to grow unnaturally large, often leading to broken wings and legs, and faced horrific slaughter practices, including having their throats slit while still conscious before being dropped into scalding water PETA has since accused KFC of animal cruelty based on these findings.
In 2022, VFC released footage revealing concerning conditions at a supplier's farm housing 380,000 birds, where they were kept at extremely high stocking densities in a large shed with minimal environmental enrichment This overcrowding resulted in limited space for the birds to move and engage in natural behaviors like foraging and exploring.
Most chickens raised for KFC are fast-growing breeds that reach slaughter weight in just 30 days According to a report by the UK’s Guardian newspaper, the emphasis on rapid growth and increased breast meat production has worsened health and welfare issues for the birds.
In a 2020 report, KFC revealed that over one-third of its chickens experience painful inflammations and various health issues, including heart and liver failure, due to inadequate conditions at its supplying farms The report highlights that increased demand for chickens exacerbates these health problems Additionally, one in ten KFC chickens suffers from hock burn, a condition caused by ammonia from waste, which can severely damage the skin of the legs and is often linked to inactivity in birds.
The weighted mortality rate on KFC farms is approximately 4%, resulting in the loss of about 400 birds from a flock of 10,000 This figure exceeds the industry average mortality rate of 2–3%, as reported by The British Poultry Council.
Why Does This Problem Matter?
The issue of animal cruelty is important because the need to avoidance of suffering to animals is the same as those of beings humans.
Animals rely on humans for protection and care, as they lack the ability to engage in social contracts or make moral decisions Consequently, it is essential to recognize their moral rights While utilizing animals for food, entertainment, or research is not inherently wrong, humans have a responsibility to prevent unnecessary suffering caused by their actions The sanctity of life is crucial, whether it pertains to animals or humans.
The mistreatment of animals during their breeding process can lead to potential health problems for those consuming them Medical professionals warn that diets based on such animals are not only nutritionally inadequate but may also pose significant health risks.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
The consumption of animal products can worsen various health issues, including diabetes, but these problems can be mitigated by adopting more humane practices in the food industry.
Consequences
The cruel treatment of animals during breeding for food production at KFC raises significant concerns for animal rights advocates, who are deeply troubled by the inhumane conditions these animals endure.
Customers of KFC are also impacted directly by the problem because the harmful effects of consumption of this source of food on human health are incurred by these consumers.
The exposure of animal abuse cases has posed significant challenges for KFC, heightening public awareness of animal welfare issues As a result, the corporation has faced a backlash that has negatively impacted its reputation, turnover, and profits, largely due to legal actions and advocacy by PETA.
The case also affected the business all over the world since after the incident, stakeholders’ expectations and demands regarding the standardized guidelines of animal treatment also increased.
Animal welfare has become a significant concern, with growing awareness of the need to enhance the lives of chickens, according to Tracey Jones, the global director of food business at Compassion in World Farming.
KFC's Efforts
KFC has developed a series of plans to overcome the problems.
KFC Canada has made a significant commitment to animal welfare by adopting the CAK method of poultry slaughter, responding to pressure from PETA This humane approach minimizes the suffering of chickens during the entire process, from removal from crates to de-feathering, reducing stress and injury The CAK method also enhances operational efficiency, as it allows workers to manage chickens more effectively without the chaos of flapping and distress, while maintaining a clean and well-lit environment.
KFC's official website emphasizes that all suppliers must adhere to strict policies prohibiting the use of hormones and steroids in chicken production, as well as the use of antibiotics This ensures that the chickens are not artificially enhanced for faster growth, maintaining the integrity of KFC’s commitment to quality and safety in their food sourcing.
To show their sincerity in transformation, KFC even formed the KFC Animal
The Welfare Advisory Council, composed of esteemed experts in animal welfare, offers insights and guidance rooted in relevant data and scientific research, playing a crucial role in shaping their animal welfare program.
In 2020, KFC announced plans to shift a greater number of its 34 suppliers towards slower-growing chicken breeds, which are less susceptible to disease and injury, thereby minimizing the reliance on antibiotics.
The fast food company aims to decrease stocking density on supplier farms, which can alleviate various animal health and welfare issues, such as footpad dermatitis, while also enhancing the animals' ability to express natural behaviors.
KFC has now signed up for the NGO-led Better Chicken Commitment (BCC) to improve animal welfare standards for birds.
OTHER ISSUES
Unfair Labor Practices
KFC has been accused of several unfair labor practices over the years, including wage theft, discrimination, and poor working conditions.
One of the most common allegations against
KFC is that the company has engaged in wage theft, which is a practice where employers illegally withhold wages from their workers In
In 2016, KFC faced a lawsuit from employees alleging violations of the Fair Labor Standards Act, claiming they were not compensated for all hours worked, denied breaks, and not reimbursed for work-related expenses.
(FLSA), which sets standards for minimum wage, overtime pay, and other employment practices in the United States The case was settled for an undisclosed amount.
KFC has faced significant criticism regarding its treatment of workers globally, notably highlighted by a 2017 lawsuit from a former employee who alleged she was terminated due to her pregnancy, resulting in a $30,000 settlement Additionally, a 2019 report by The Guardian revealed that migrant workers at a KFC supplier in Malaysia endured conditions akin to slavery, including excessive working hours, abuse, and passport confiscation In response, KFC initiated an investigation and subsequently severed ties with the implicated supplier.
KFC is actively addressing labor concerns by implementing new policies to prevent wage theft and enhancing training programs for franchisees The company has also pledged to raise wages for its hourly workers in the United States Despite these efforts, labor advocates emphasize the need for further action to guarantee fair treatment and adequate wages and benefits for KFC employees.
Environmental Concerns
KFC has encountered multiple environmental ethics controversies, notably allegations related to deforestation, climate change, water pollution, and waste management A key issue has been the company's role in deforestation, raising concerns about its environmental impact.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
KFC has faced criticism from environmental advocates regarding its significant impact on biodiversity, prompting calls for the company to implement more robust measures to mitigate its environmental footprint.
KFC has come under scrutiny for its waste management practices, as the company produces a considerable volume of waste from its restaurants, including packaging and food waste Environmental advocates contend that KFC has not sufficiently addressed its waste footprint or enhanced its recycling and composting initiatives.
In addition, KFC has been accused of contributing to water pollution in some areas For example, in 2016, KFC was fined
$8.3 million by Chinese authorities for violating water pollution regulations The company was accused of discharging waste in the river.
KFC's environmental ethics scandals have led to calls for the company to take stronger action to address its environmental impact KFC has taken some steps to address these concerns.
In 2018, the company pledged to obtain 100% of its fiber-based packaging from certified or recycled sources by 2020, and KFC is set to eliminate all plastic packaging by 2025.
KFC's Business Ethics Issue in Vietnam
KFC has faced a significant business ethics scandal in Vietnam, where the company has been accused of a range of unethical practices, including tax evasion, bribery, and operating without proper licenses.
KFC Vietnam faced significant scrutiny when an investigation into its tax practices led to the company being ordered to pay back taxes and penalties.
KFC Vietnam faced allegations of bribery and corruption, notably in 2013 when the company was fined for bribing a local official to speed up the permit acquisition process for its restaurants Additionally, KFC was accused of attempting to bribe local officials to evade fines related to food safety regulation violations.
In addition, KFC Vietnam has been criticized for operating without proper licenses In
2017, the company was fined for operating four restaurants without the required licenses, which led to calls for the company to be more transparent and accountable.
OUR POINT OF VIEWS
There are several reasons why ethical problems occur in this business.
An ethical dilemma arises when moral principles fail to clarify the right course of action With the intensifying competition among fast food chains, KFC must expand its menu options to satisfy the growing demands of its customers.
Businesses must focus on increasing sales, reducing costs, and maximizing profits while navigating ethical dilemmas related to product quality, animal welfare, and working conditions.
Maximizing profit is a primary goal for businesses, but this pursuit can sometimes lead to unethical practices, including compromising safety, exploiting employees, or engaging in fraudulent activities Research by TCB and Associates indicates that companies with lower profit margins are more prone to committing illegal acts.
Navigating ethical decisions can be challenging when individuals or organizations face competing interests For instance, a business might prioritize its profits at the expense of customer welfare or environmental sustainability.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
RECOMMENDATION
Immediately Terminating The Contract With Unethical Supply Chains
KFC should establish a detailed supplier code of conduct within their contracts to guarantee compliance with labor standards, environmental impact, and ethical considerations throughout their supply chain Furthermore, it is essential for KFC to create a dedicated monitoring department responsible for the regular oversight and evaluation of supplier production practices.
Investing in research to explore natural agents and diverse cooking methods is essential for improving chicken quality, rather than relying on chemical injections Additionally, it is important to avoid excessive use of monosodium glutamate to ensure a healthier product.
KFC should enhance employee satisfaction by raising the minimum wage and providing additional benefits, including a comfortable work environment, health insurance, childcare support, and incentive travel programs Encouraging employees to share their ideas and providing opportunities for growth and development are crucial for fostering a positive workplace culture Furthermore, establishing strict ethical standards for employees will contribute to a more responsible and engaged workforce.
Expanding The Menu to Include More Vegetarian or Healthier Options
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
A massive 66% of the global population is paying more attention to their overall health now than before COVID-19 (Mindshare's
KFC should expand its menu to include more meat-free options, such as grilled or baked dishes and a variety of salads and vegetable-based sides, to cater to vegetarians and health-conscious customers By offering healthier alternatives, KFC can attract new patrons and retain those who prioritize their well-being Furthermore, providing detailed nutritional information, including calorie counts and ingredient lists, will empower customers to make informed choices about their meals.
The Global Sustainability Study 2021 reveals that over one-third of consumers worldwide are willing to pay a premium for sustainable products, reflecting a growing demand for eco-friendly options As consumers become more aware of the environmental effects of their food choices, KFC should prioritize the use of environmentally-friendly packaging, including recyclable and biodegradable materials Furthermore, KFC could enhance its sustainability efforts by sourcing ingredients from sustainable suppliers and supporting local farmers whenever possible.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium
CONCLUSION
KFC, as a prominent global brand, has faced its share of mistakes but has learned from them and taken steps to address past unethical issues As a leading fast food company, KFC recognizes that food safety standards differ across countries, which can lead to significant costs This disparity sometimes results in multinational corporations, including KFC, compromising on corporate social responsibility and ethical practices in pursuit of profit maximization.
Corporate ethical responsibility is vital for a company's image and growth While KFC has made strides in certain areas, there are significant improvements needed, particularly in environmental sustainability and food safety The company has yet to fully embrace eco-friendly practices, such as using biodegradable packaging, and must enhance its quality control measures to ensure food safety and protect public health.
Understanding corporate ethical responsibility is crucial for business organizations to ensure long-term survival KFC has successfully enhanced its brand image among stakeholders by prioritizing ethics Through initiatives aimed at environmental sustainability and social welfare, KFC has garnered positive media attention, thereby strengthening its competitive positioning in the marketplace.
As consumers increasingly prioritize ethical and sustainability issues, it is essential for companies like KFC to adopt responsible business practices and proactively address ethical concerns By embracing these values, KFC can strengthen its position in the fast-food industry while showcasing its dedication to sustainability and ethical conduct, ultimately fostering long-term success and profitability.
Customers are more satisfied when they buy from companies that support their communities, and employees take pride in working for socially responsible organizations Additionally, businesses that meet the expectations of all stakeholders while achieving economic goals gain the trust of investors and shareholders In our interconnected world, it is crucial for businesses to collaborate with all stakeholders and address each other's needs.
Do you want full access? Go Premium and unlock all 24 pages
Access to all documents Get Unlimited Downloads Improve your grades
Share your documents to unlock
Get 30 days of free Premium