EXECUTIVE SUMMARY

This project is all about KFC (Kentucky Fried Chicken). In this project, the history, its
establishment, its restaurants network all over the world, is being discussed. We mainly
focused on its being socially responsible aspect. Besides being a big profit earning
organization it is also working for the betterment of the society.

We have covered all the aspects regarding KFC’s socially responsible in Asia and rest of
the world. If we look generally on KFC, Food, fun & festivity, this is what KFC is all
about leading the market since its inception; KFC provides the ultimate chicken meals for
a Chicken Loving Nation. Be it colonel sanders secret original recipe chicken or the hot
& spicy version, every bit brings a YUM on our face. Serving delicious and hygienic
food in a relaxing environment made KFC everyone's favorite, since then KFC has been
constantly introducing new products and opening new restaurants for its customers.

KFC was already in the minds of people for their unique and great taste. But since after
being engaging itself in different social acts it has become more prominent among the
people.

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 CONTENTS
Topic Page #

1. Introduction…………………………………………………………….. 05
2. KFC- History………………………………………………….. 07
3. KFC Logo & Design…………………………………………... 09
4. Mission & Vision Statement…………………………………... 10
5. External Environment…………………………………………. 11
6. Strategy………………………………………………………… 12
7. Organization Structure & Design……………………………… 12
8. Culture…………………………………………………………. 13
9. HRM…………………………………………………………… 13
10. International Operations……………………………………….. 13
11. Social Responsibility…………………………………………... 14
12. KFC & Cupola………………………………………………… 15
13. KFC & FCSR…………………………………………………. 19
14. KFC CSR- Worldwide………………………………………… 21
15. KFC CSR- Asia……………………………………………….. 24
16. KFC CSR- Pakistan…………………………………………… 26
17. Conclusion…………………………………………………….. 28
18. References……………………………………………………… 30
19. Declaration of Fairness………………………………………… 31
20. Member Contribution Sheet…………………………………… 32
21. Peer Evaluation Sheet…………………………………………. 33

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 INTRODUCTION

KFC

Type Wholly owned subsidiary

Genre Southern fried chicken

1930 (original) (North Corbin, Kentucky)

Founded
1952 (franchise) (Salt Lake City, Utah)

Founder Harland Sanders

Headquarters Louisville, Kentucky
Gregg R. Derrick President
Key people Harvey R. Brownlea COO
James O'Reilly VP for Marketing
Industry Fast food

Products Fried Chicken and related Southern foods

Revenue $520.3 million USD (2007)

Employees 24,000 (2007)
Parent Yum! Brands
Website http://www.kfc.com/

Kentucky Fried Chicken (KFC) is a very well known restaurant in the world, based in
Louisville, Kentucky, rated at number 60 as the world most well known brand by
Business week. It is one of the world’s largest chicken restaurant chain and third larges
fast food chain in 2000.

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With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years,
of being the chicken Experts. Since then, KFC has been constantly introducing new
products and opening new restaurants for its customers. Serving delicious and hygienic
food in a relaxing environment made KFC everyone’s favorite.

KFC has more than 11,000 restaurants in more than 85 countries and territories around
the world. Every day, nearly eight million customers are served around the world. KFC is
part of Yum! Brands, Inc., which is the world's largest restaurant system with over
32,500 KFC, A&W All-American Food™,Taco Bell, Long John Silver's and Pizza Hut
restaurants in more than 100 countries and territories.

KFC had a 55 percent share of the U.S. chicken restaurant market in terms of sales. KFC
was one of the first fast-food chains to go international in the late 1950s and was one of
the world’s most recognizable brands. KFC early international strategy was to grow its
company and franchise restaurant base throughout the world.

With over 50% of the market share of chicken, it becomes very difficult for new
companies who may want to enter the market. KFC has name recognition around the
world and has been globally positioned for many years. KFC’s secret recipe of 11 herbs
and spices has made it the leader in chicken for the last fifty years.

In early 2000 KFC had refocused its international strategy on several high growth
markets such as Canada, Australia, the United Kingdom, China, Korea, Thailand, Puerto
Rico, and Mexico.

KFC primarily sells chicken in form of pieces, wraps, salads and burgers. While its
primary focus is fried chicken KFC also offers a line of roasted chicken products, sides
and desserts. The popularity and novelty of KFC has led to the general formula of the
fried chicken fast-food restaurant being copied by restaurant owners worldwide.

Outside of North America, KFC offers beef based products such as burgers or kebabs,
pork based products such as ribs and other regional fare In some international locations,
KFC may sell hamburgers. In the U.S., KFC began offering the Fish Snacker sandwich
during Lent in 2006. The Fish Snacker consists of a rectangular patty of Alaskan Pollock
on a small bun, and is the fifth KFC menu item in the Snacker category.

KFC restaurants also serve side dishes like coleslaw, various potato-based items;
including potato wedges, french fries and mashed potatoes with gravy, biscuits, baked
beans, macaroni and cheese, rice, steamed vegetables and corn on the cob.

The many sales of KFC during the 1970’s and 1980’s lead to a very confusing direction
and took the focus of the company off of its original strategy. During the 1980’s and
1990’s KFC struggles were much do to the inability to bring new products to the market
quickly and it’s innovation of new products. KFC fell behind the market in new products
and was copying other fast food chains to stay competitive. KFC changed its strategy in

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the late 1990’s, which included adding items to its menu. KFC then in an effort to
address its declining market share began building smaller restaurants in non-traditional
outlets.

Colonel Harland Sanders, founder of the original Kentucky Fried Chicken, was born on
September 9, 1890. When he was six, his father died and his mother was forced to go to
work while young Sanders took care of his three year old brother and baby sister. This
meant he had to do much of the family cooking. By the time he was seven, Harland
Sanders was a master of a rangeof regional dishes.

After a series of jobs, in the mid 1930s at the

age of forty, Colonel Sanders bought a
service station, motel and cafe at Corbin, a
town in Kentucky about 25 miles from the
Tennessee border.

He began serving meals to travelers on the

dining table in the living quarters of his
service station because he did not have a
restaurant. The dining area was named
"Sanders Court & Café" and was so
successful that in 1936 Kentucky Governor
Ruby Laffoon granted Sanders the title of
honorary Kentucky Colonel. The following
year Sanders expanded his restaurant to 142
seats, and added a motel he bought across the
street.

When Sanders prepared his chicken in his

original restaurant in North Corbin, he
prepared the chicken in an iron skillet, which took about 30 minutes to do, too long for a
restaurant operation.

In 1950’s he sold his properties and traveled the U.S. to sell his chicken to restaurant
owners. Sanders entered into franchise agreements paying him five cents for each piece
of chicken sold.

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 The first to take him up on the offer was Pete
Harman in South Salt Lake, Utah; together, they
opened the first "Kentucky Fried Chicken" outlet
in 1952.

By the early 1960s Kentucky Fried Chicken was

sold in over 600 franchised outlets in both the
United States and Canada. By 1963 there was
over 300 franchises and sales had reached $500
million. The Sandres, who was 74 years old at the time, decided to sell his business.

Sanders sold the entire KFC franchising operation in 1964 for $2 million USD to Jack
Massey and John Young Brown Jr, who focused on expanding KFC throughout the US.
In the late 1960’s, KFC was stablilized in the US and the owners turned their focus to
international markets.

By 1971, KFC had established 2450 franchises and 600 company-owned restaurants in
48 countries. Since that time, the chain has been sold three more times, most recently to
PepsiCo. PepsiCo acquired KFC in 1986 along with Pizza Hut and Taco Bell Shortly
after. The KFC restaurants offer fried on-the-bone chicken, the Pizza Hut offer an array
of Pizzas, and the Taco-Bells offer a mexican style product.In 1997 PepsiCo decided to
spin off all three restaurants into an independent, publicly held company called Tricon
Global Restaurants,Inc.

Then in 2002 Tricon acquired Long John Silver and A&W All American Food, who are
known for their seafood, beef, and beer products. These are all well known brands with
an enormous customers base. Restaurents where they shortly after, changed their Tricon
name to Yum! Brands, Inc. As of today KFC is severing about 8 million customers
globally. They have more than 11000 restaurents in more than 85 countries around the
world.

Additionally, Colonel Sanders' nephew, Lee Cummings, took his own Kentucky Fried
Chicken franchises and converted them to his own "spin-off" restaurant chain, Lee's
Famous Recipe Chicken.

Today, some of the older KFC restaurants have become famous in their own right. One
such restaurant is located in Marietta, Georgia. This store is notable for a 56-foot (17 m)
tall sign that looks like a chicken. The sign, known locally as the Big Chicken, was built
for an earlier fast-food restaurant on the site called Johnny Reb's Chick, Chuck and
Shake. It is often used as a travel reference point in the Atlanta area by locals and pilots.

The original handwritten recipe, along with vials containing samples of each of 11 herbs
and spices, is kept locked away at the KFC corporate headquarters in Louisville,
Kentucky. Only 2 executives have access to it and to maintain security, the company uses
multiple suppliers each providing only a portion of the final ingredients.

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Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after
being stricken with leukemia in 16th December, 1980. Flags on all Kentucky state
buildings fly at half-staff for four days.

Now Kentucky Fried Chicken Corporation (KFC) is one of the world’s largest chains of
chicken restaurants and covers a large percentage of the U.S market in terms of sales. It
is a chain of restaurants having its branches all over the world. As it is the world’s most
recognizable brand, its international strategy was to grow more and more branches in the
world through its greater quality product, customer service and cleanliness of the
restaurants

KFC LOGO & DESIGN

The Colonel Harland Sanders has always been a part of the KFC logo. In the early years,
we can see him to have a more serious face but over time, we can see that his face has
become more friendly. Also, the red color in the logo has given the logo a more bold and
lively look.

In April 2007, KFC unveiled their current logo in which the Colonel shed his white suit
jacket used in past years in logo of KFC for a red cook's apron. The new logo includes
bolder colors and a more well-defined visage of the late Kentucky Fried Chicken
founder, who will keep his classic black bow tie, glasses and goatee. The logo is
changing for only the fourth time in 50 years, and for the first time in nearly a decade.
The smiling Colonel is featured against a red background that matches his red apron,
with the KFC brand name in black thick lettering under his chin.

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 MISSION & VISION STATEMENT OF
KFC

MISSION STATEMENT

“Recognition: we find reasons to celebrate the achievements of others and have fun doing
it,” is right up there with “Customer Focus” and “Belief in People.” "Recognition is
everybody's responsibility," says Chicago restaurant manager Adonis Chapel. He
explains that since KFC started encouraging informal recognition, things have really
changed. "You keep employees longer, they are happier, they work better for you."

VISION STATEMENT

Quoted from Yum! Brands, Inc., KFC’s parent corporation: “Our passion, as a restaurant
company, is to put a YUM on people's faces around the world, satisfying customers
every time they eat our food and doing it better than any other restaurant company.
A&W, KFC, Long John Silver's, Pizza Hut, and Taco Bell offer customers food they
crave, comeback value, and customer-focused teams. The unique eating experience at
each of our restaurants make our customers smile and inspire their loyalty for life.
Toward that end, our 750,000 associates around the world are trained to be customer
maniacs.”

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 EXTERNAL ENVIRONMENT
-Owners
Gregg C. Dedrick, age 45, President of KFC Corp.
Many individual owners of franchises and establishments around the globe
Yum! Brands, Inc. owns KFC Corp. today

-Customers
Consumers continue to return to KFC because of the quality and good prices
of their food
KFC has a lot of fans and continues to grow to provide better customer service

-Suppliers
Companies who provide KFC with raw materials and chicken

-Competitors
Chick-fil-a is KFC’s biggest competitor, and quickly growing in popularity
Other competitors include AFC Enterprises and McDonald’s

-Indirectly Interactive Forces

State and government taxes
Economic situation and food availability
Legal and political guidelines for animal treatment

FOUNDING TRUTHS
“We at Yum! Brands, Inc., pledge to conduct our business according to this set of truths,
which we believe to be the foundation for building the best restaurant company in the
world.”

The founding truths are:

People Capability First…Satisfied customers and profitability follow.

Respond To The Voice Of The Customer…Not just listen.
The Restaurant General Manager Is Our #1 Leader…Not senior management.
Run Each Restaurant As If It’s Our Only One…Avoid the trap of the averages.
Recognition Shows You Care…People leave when you don’t.
Great Operations and Marketing Innovation Drive Sales…No finger pointing.
Operation Discipline Through Process and Standards…Consistency, not “program of the
month”.
Franchisees Are Vital Assets…Operate as one system, not two.
Quality In Everything We Do…Especially the food.

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 STRATEGY
Quoted from Yum! Brands, Inc., KFC’s parent corporation: “The company's long-term
strategy is focused around key areas of strength and opportunity, built on Yum! Brands'
foundation as the franchisor of its brands: A&W All-American Food, KFC, Long John
Silver's, Pizza Hut, and Taco Bell worldwide. The company operates with five long-term
measures identified as essentials of corporate growth and progress . . .”

1. International Expansion
“Yum! Brands number-one goal is to drive global expansion with its category-
leading brands. In 2002, the company opened a record 1,051 new international
restaurants and increased international system sales 9% prior to foreign currency
conversion.”

2. Multibrand Innovation & Expansion

“Yum! Brands is the worldwide leader in multibranding, offering consumers
more choice and convenience at one restaurant location from a combination of two of the
company's brands. The company and its franchisees today operate over 1,975 multibrand
restaurants, generating over $2 billion in annual system sales. Approximately 350 new
system wide multibrand restaurants were opened in 2002.”

3. Portfolio of Category-Leading U.S. Brands

“U.S. system wide same-store sales increased approximately 4% while U.S.
same-store sales at company restaurants increased approximately 2% in 2002.”

4. Global Franchise Fees

“Global franchise fees, a significant factor in annual profits and cash flow, grew
6% to $866 million. Global franchise net restaurant growth was 2% in 2002.”

5. Strong Cash Generation and Returns

“Yum! Brands generated over $1.3 billion in cash from all sources in 2002, more
than fully funding capital expenditure needs, allowing free cash flow for share
repurchase, and some repayment of debt. Return on invested capital is 18%, in the
restaurant industry's top tier.”

ORGANIZATIONAL STRUCTURE & DESIGN

- KFC is part of a divisional structure, which is Yum! Brands, Inc.
- Long John Silver’s, A&W, Taco Bell, and Pizza Hut are the other divisions
- Offers positions to many people; good for senior executives
- Willing, responsive, and flexible to change and growth
- KFC works to bring recognition and money to Yum! Brands, Inc.

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 CULTURE
- Big on diversity in the workplace
- Promotes differences in background, ethnic cultures, and values
- Team-oriented environment
- Focuses on teaching everybody something new
- Promotes unity in the workplace
- Focuses on building relationships and creating diversity and commitment within
the company and amongst employees and customers

HUMAN RESOURCE MANAGEMENT

“We won’t make you wing it” is KFC’s motto when it comes to training employees.

- Training includes:
1) Workbooks
2) Quizzes
3) On-the-job competency based training
- Employees are encouraged to work together as a team
- KFC is committed to making sure their people grow to their highest potential
- KFC does their best to make the job interesting and exciting for workers

INTERNATIONAL OPERATIONS
- KFC opened its first franchise overseas in 1973 in Malaysia
- KFC is a very diverse company and has 750,000 people employed around the
world
- 7,741 of the Kentucky in China, Japan, Korea, Germany, Italy, the Bahamas, etc.
- KFC is devoted to Fried Chicken franchises are in countries other than the U.S
- The incredible success of this company has given it the opportunity to compete
globally with other corporations and gain in popularity worldwide
- KFC franchises are located diversity and is willing to give just about anyone a
chance to begin their career by working at one of their locations – they are good at
choosing a range of people to work at their stores, whether different by race,
religion, skin color, or heritage.
- Expanding their global business is one of Yum! Brands, Inc.’s key growth strategy
- In 2001, KFC opened their 500th store in China, the fastest growing and most
profitable country outside the U.S. KFC was rated the #1 brand in the entire
country for that year.
- KFC (as a division of Yum! Brands) continues to grow substantially throughout the
world as a fast food enterprise, and there is much more success and growth in the
future.

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 SOCIAL RESPONSIBILITY

KFC has made it their responsibility to consumers that they will provide quality chicken
in a fast, efficient way.

- They also say that their meat comes about ethically and through humane treatment.
This has not always proved true in the past, since the PETA has become involved with
their warehouses that “grow” the chickens. KFC has made statements to the patrons of
KFC, though, that the chickens will not be treated badly in the progression from birth to
the processing plant.

- 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 than that which they have known. 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

Recently, the PETA group secretly recorded a worker at the Pilgrim’s Pride, one of the
processing plants, beating a live chicken against the wall in order to kill it. As soon as
KFC was notified of this treatment, they immediately submitted a written statement
saying that the treatment was “appalling” and took action immediately, placing an animal
welfare expert at the plant to ensure the ethical, humane treatment of the chickens.

The statement said that: "We do not tolerate animal abuse by any of our suppliers, under
any circumstance.” KFC also told the company Pilgrim's Pride that, "unless they can
definitively assure us there are absolutely no abuses taking place, we will not purchase
from this Moorefield, West Virginia, facility.” PETA says that more action should be
taken, but KFC has done all it can to ensure that people are happy with the facilities and
means by which their food comes about.

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 KFC & CUPOLA

Cupola is a Dubai based multinational company involved in several business including,

oil gas exploration, plastic cards, retail markets and food franchising. Cupola holds the
master franchise rights to operate KFC in Pakistan.

Vision:
Cupola creates value through change, challenging
existing paradigms and by applying vision,
innovation and skilled execution. We seek
opportunities for investment where others do not look
and we examine these opportunities with open-
mindedness, thoroughness and hard-headed
practicality.

Mission:
Its mission is to harness and reap the potential of the rapidly developing markets of the
Arabian Peninsula and South Asia. We apply a regional focus to allow us to reap the
potential of rapidly expanding markets in the Arabian Peninsula and South Asia. In the
mature capital markets of Europe and the United States, we are well regarded as
innovative and creative niche investors. We believe in the minimization of risk: through
the depth of our senior management and the quality of our professional staff; through
exhaustive and through an emphasis on pre-feasibility.
What everyone in Cupola shares is an almost obsessive drive for quality, an active
consciousness of the team approach and a commitment to our collective success. We
strive continually to improve the tangible and intangible returns for all our stakeholders.

The principal Of Cupola:

Credibility: Being regarded by our stakeholders as being a reliable source of knowledge.

Character: Conducting ourselves with honesty, integrity, and spirit.
Communication: Facilitating free flow of information about our activities. Always
voicing our opinion and sharing our concerns.
Creditworthiness: Total honesty in our business dealing, as financially responsible
partners, advisors and employers.
Commitment: Always seeking to be true to our word, but doing what we do with energy
and determination.
Capacity: Constantly seeking to reinforce and build our capabilities to the point of
always exceeding the exceptions of others, but always doing so as part of a team.
Coherence: Being clear to the point of transparency at all times.
Charisma: Seeking to stand from the rest and employing people who do.

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Conscientiousness: Striving for excellent- we believe that there is no shortcut to hard
work.
Conceptual: Thinking with clarity, imagination and communicating this clearly.
Caring: Doing what we do with a deep commitment to quality and bearing in mind the
opinions of others.
Community: Believing that we have a deeper role to play than just being business
people and returning some of the rewards that we reap.

Activities:
The Cupola group is an Asian Development capital and Operating Group. The group has
offices in United Arab Emirates, United Kingdom, Switzerland and Pakistan. The
Group’s head office is in Dubai. Cupola’s activities are conducted through four clearly
defined business groups.
Capital Group
Industrial Group
Consumer Group
Information Group

The Activities of the company are regionally focused, but various projects and strategic
investments are undertaken in Europe and North America to take advantage of capital
accessibility and niche growth opportunity.

Cupola Pakistan

Cupola, Pakistan Ltd. aims to “create value through change, challenging existing
paradigms by applying vision, innovation and skilled execution”. The company has
always accentuated corporate social responsibility through various initiatives taken under
the banner of its flagship brand KFC. These include setting up of libraries in various
schools, provision of training for teachers and now to educational support for
underprivileged children.

Cupola Cares Foundation

We are a non-profit, registered organization and a charitable wing of Cupola. We aim to

help the underprivileged children by giving them quality education thereby making an
attempt to raise the literacy rate of Pakistan which is externally low by world standards
characterized by low enrolment in primary and secondary school, high drop out rates and
an over all poor quality of education. Cupola realizes the need for education and intends
to build this need at the grass root level. Our vision is supported by prominent personality
of the country who are also amongst the board of directors of the foundation:

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Prof. Danishmand, Dean & Director IBA
Mr. Saifuddin Zoomkawala, Chairman EFU
Mr. Tariq Kirmani, Chairman PIA
Syed Salahuddin Hyder, C.E.O. Century 21
Mr. Waqar H Siddique, Executive Director Abraaj capital
Mr. Rafiq Rangoonwala, C.E.O. Cupola Pakistan
These are individuals belonging to different corporate sectors and are already engaged in
various forms of community support services and welfare activities.

Focus – Educating the young

Cupola Cares has developed a program for the education of those needy children who
want to educate themselves for a better future. We at Cupola Cares are focusing on
schools and teachers in Pakistan. We finance those students who have the desire to study
yet do not have enough finances to acquire education. We sponsor students from
different schools countrywide. We are currently sponsoring schools and classes apart
form individual students. By this we want education to be easily accessible and
affordable to a arger number of children.

This, we believe, can be achieved by developing communities through quality education

and training programs. Along with this, we shall work for the promotion of education and
to establish educational institutions in rural areas.

However, we emphasize on quality education and therefore we believe that it is essential

that the teachers of the schools be well trained. Thus we also conduct teachers’ training
programs under our banner.

We believe that spreading education throughout the country is the key to a prosperous
future. Join hands with us in helping children obtain quality education, which is their
right.

Social/Educational Activities

A matter close to our heart, and one that we strongly feel you as our customer. You have
always been kind supporters and partners to what Cupola /KFC – Pakistan is today. We
are grateful and appreciate your patronage!

We have recently felt a major void in the way business is conducted in Pakistan. A lot of
lip service is provided to economic and social development, yet no action in actuality
taken. Recently, we have taken a couple of initiatives, which we feel address this
disparity, especially in the field of education:

Teacher’s Convention:
• Teacher’s Convention 2006:
• Teacher’s Convention 2005;
• Teacher’s Convention 2004;

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Teacher’s Training workshop:
Women’s Forum:
KFC Campus (TCF School):
Educational Enhancement Program:

Charity Begins at School

The objectives of “Charity begins at School” is to help needy children throughout

Pakistan. To play an active role in the development of our nation’s most valuable natural
resources – our children; to unite all members of local communities in common causes in
the month of Ramadhan each year during the annual collection and distribution
campaign; to contribute to better communities in the future.
KFC wants to promote the spirit of helping the less fortunate of our society among our
partner school kinds. Through this program students will collect:

Toys
Cash
Old books
Stationary items
Clothes

These funds are given to SOS, Cares & Kindess Rahat Gah, Education & Training for
Special Kids and other social welfare organization. The kids will hand over the good to
the organizations themselves and will be actively involved in the program.

Faryad: Is the environmental campaign by KFC Pakistan. The main project of

Faryad is tree plantation, creating awareness & cleaning the environment and traffic rules
and regulation. We did series of FM-100 program with school principals to create the
awareness of environmental pollution among school children.

Jail Visits: Our existing penal system has thousands of children who were born in prison
and know no existence outside of these prisons. KFC Pakistan periodically visits these
under privileged children along with Chicky (our children mascot) to entertain them. Free
food and gifts are provided.

Special Children: There are three ways in which we cater to them: Visits to their
facilities to provide entertainment, again through Chicky;
Visits to our facilities for food and entertainment; All new unit opening are done by
special children as our guests of honor to inaugurate the outlet.

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 KFC & FCSR
FCSR (Foundation for Corporate Social
Responsibility)

It is a Foundation of like-thinking, Socially Responsible

Companies that takes a pro-active stance against social
injustices in the communities in which we live and work.
Some might call it Corporate Crusaders for positive social
change.

It is a Foundation of Companies that pools its financial and

intellectual capital to create unified campaigns against social injustice, and do social
good where governments, charities, foundations, and the private sector in general have
often failed.

It is a Foundation of Companies that feels it is our Corporate Social Responsibility to

bring social injustices to the attention of our society, and then use our own resources and
the resources of others to create, educate and help eliminate these injustices.

It is a Foundation of Multi-National Companies that not only "talks the talk," but also
"walks the talk." During its first 4-years of operations, the Foundation for Corporate
Social Responsibility has provided 2.5 million Hot-Meals to some of Poland’s most
needy children. It feed 60,000 meals each month to 3,000 hungry Polish children in 15
schools each school day in Northwest Poland, a place it like to call the Promise Land.

MISSION STATEMENT

The Foundation for Corporate Social Responsibility encourages corporations to be

Socially Responsible, and to assist them in achieving commercial success in ways that
respect ethical values, people in need, their communities and the environment. Realizing
that the greatest incentive to participating in social good is to participate in social good
itself, the Foundation vigorously develops and supports philanthropic activities.
Foundation members live up to their responsibilities to society by being an economic,
intellectual and social asset to each community in which they do business.

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 KFC MEMBER OF FCSR
American Restaurants Sp. Zo.o (AmRests), owners of
Pizza Hut and Kentucky Fried Chicken have a long
tradition of being Socially Responsible and in helping
Polish people in need for more than 10 years. Pizza Hut
and Kentucky Fried Chicken are Members of the Foundation for Corporate Social
Responsibility.

The Socially Responsible culture of AmRest is ongoing, and is an integral part of all
corporate activities. It reflects AmRest’s key values of “Obligations Toward Society.”
Social Responsibility played a major part in the 10th year anniversary celebration of
AmRests in Poland. As a part of the formal activities, employees and the management of
Pizza Hut and 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 a great deal about their community as they joined hands with a
special group of people they knew little or nothing about, mentally disabled children.
They spent time getting to knowing each other, sang songs, played games and actually
worked closely with the children’s teachers and therapists in conducting daily
rehabilitation activities.

This was not in any way an ordinary day.

After a full Saturday morning of fun and play,
the children were treated to a special lunch
especially prepared for them by Poland’s very
best. And wouldn’t you know it? World
famous slices of Pizza Hut pizza and
scrumptious KFC chicken wings and legs
were the specialty of the day! It was a
wonderful experience for everyone involved.
The special kids of Wroclaw loved every
minute, and the AmRest employees returned
home knowing that they had responsibly made
a difference in every life they touched that
Saturday morning. The memories are sure to
last for all of these new friends. Thank you
AmRest for making a difference!

AmRest had 113 Pizza Huts and KFCs in

Poland, and 22 KFCs in the Czech Republic at
the end of 2003.

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 KFC CSR-Worldwide
There's more to KFC than great food. They promote education, diversity and animal
welfare in a number of positive ways.

- Colonel’s scholars
- Supplier code of conduct
- Animal welfare programs
- Social Diversity.

COLONEL’S SCHOLARS

The KFC Colonel’s Scholars Program is offered to high school

seniors planning to attend a public in-state college or
university.The KFC Colonel's Scholars Program is looking for
high school seniors with entrepreneurial drive, strong
perseverance, demonstrated financial need, and who want to pursue a college education
at an accredited public institution in the state they reside. Students who meet the criteria
may apply online to become a KFC’s Colonel’s Scholar.

SCHOLARSHIPS

The Award
The Scholarship offered by the KFC Colonel's Scholars Program provides funding for:
- Tuition
- Fees
- Books
- Room and Board
Awards can be up to $5,000 per year. The scholar could receive up to $20,000 over four
years to help complete a bachelor's degree.

Eligibility: To be eligible to compete for the KFC Colonel's Scholars Scholarship, an

individual must:
- Graduate from high school.
- Earn a minimum cumulative high school GPA of 2.75
- Plan to pursue a bachelor's degree at a public, in-state college or university.
- Be a US citizen or permanent resident
- Demonstrate financial need.

Selection Process: Completing the online application is the first step. Then all submitted
applications are reviewed and semifinalists selected. Semifinalists supposed to be asked
to provide additional documentation. After the semifinalist information is received, an
independent selection committee meets to select the KFC Colonel's Scholars.

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 SUPPLIER CODE OF CONDUCT

YUM! Brands, parent company of KFC is committed to

conducting its business in an ethical, legal and socially
responsible manner. To encourage compliance with all legal requirements and ethical
business practices, Yum has established this Supplier Code of Conduct (the "Code") for
Yum's U.S. suppliers ("Suppliers").

Compliance with Laws and Regulations: Suppliers are required to abide by all
applicable laws, codes or regulations including, but not limited to, any local, state or
federal laws regarding wages and benefits, workmen's compensation, working hours,
equal opportunity, worker and product safety. Yum also expects that Suppliers will
conform their practices to the published standards for their industry.

Employment Practices: Working Hours & Conditions: In compliance with applicable

laws, regulations, codes and industry standards, Suppliers are expected to ensure that
their employees have safe and healthy working conditions and reasonable daily and
weekly work schedules. Employees should not be required to work more than the number
of hours allowed for regular and overtime work periods under applicable local, state and
federal law.

Non-Discrimination: Suppliers should implement a policy to effectuate all applicable

local and federal laws prohibiting discrimination in hiring and employment on the
grounds of race, color, religion, sex, age, physical disability, national origin, creed or any
other basis prohibited by law.

Child Labor: Suppliers should not use workers under the legal age for employment for
the type of work being performed in any facility in which the Supplier is doing work for
Yum. In no event should Suppliers use employees younger than 14 years of age.

Forced and Indentured Labor: In accordance with applicable law, no Supplier should
perform work or produce goods for Yum using labor under any form of indentured
servitude, nor should threats of violence, physical punishment, confinement, or other
form of physical, sexual, psychological, or verbal harassment or abuse be used as a
method of discipline or control.

Notification to Employees: To the extent required by law, Suppliers should establish

company-wide policies implementing the standards outlined in this Code and post notices
of those policies for their employees. The notices should be in all languages necessary to
fully communicate the policy to its employees.

Audits and Inspections: Each Supplier should conduct audits and inspections to insure
their compliance with this Code and applicable legal and contractual standards. In
addition to any contractual rights of Yum or Unified Foodservice Purchasing Co-op,
LLC ("UFPC"), the Supplier's failure to observe the Code may subject them to
disciplinary action, which could include termination of the Supplier relationship. The

21
business relationship with Yum and UFPC is strengthened upon full and complete
compliance with the Code and the Supplier's agreements with Yum and UFPC.

Application: The Code is a general statement of Yum's expectations with respect to its
Suppliers. In the event of a conflict between the Code and an applicable agreement, the
agreement shall control.

ANIMAL WELFARE PROGRAM

Yum! Brands, parent company of KFC, is also committed to the

humane treatment of animals.Yum! Brands is the owner of
restaurant companies and, as such, does not own, raise or transport animals. However, as
a major purchaser of food products, have the opportunity, and responsibility, to influence
the way animals supplied are treated. Yum take that responsibility very seriously, and are
monitoring its suppliers on an ongoing basis to determine whether its suppliers are using
humane procedures for caring for and handling animals they supply. As a consequence, it
is goal to only deal with suppliers who promise to maintain high standards and share
yum, s commitment to animal welfare.

Yum! Brands formed the KFC Animal Welfare Advisory Council, which consists of
highly regarded experts in the field. The Council provides information and advice based
on relevant data and scientific research. The Animal Welfare Advisory Council has been
a key factor in formulating our animal welfare program.

In consultation with our Council, KFC has developed guidelines and audit programs for
our suppliers in the broiler industry. We were also a prominent player in the joint effort
conducted by the National Council of Chain Restaurants and the Food Marketing
Institute to develop comprehensive guidelines for all species of farm animals.

KFC has implemented a farm level audit program - a program

which is industry-leading in the areas of poultry care and
handling.

SOCIAL DIVERSITY

Diversity is more than a philosophy at KFC; it is part of our founding How We Work
Together principles. Our global culture is actively developing a workforce that is diverse
in style and background, where everyone can make a difference.

22
 KFC CSR-ASIA

KFC handshake for hearing impaired

As far as Asia is concerned, the very first KFC outlet opened with impaired persons was
in Kolkata, India.
Thirty-seven boys and girls at the newly-opened Kolkata outlet have been trained to lip-
read the customers' requests.

In a first of its kind initiative and available only in Kolkata, global fast food giant
Kentucky Fried Chicken (KFC) has set up its first outlet in Kolkata which would be
managed by around 37 hearing impaired young boys and girls.
KFC has an outlet in Chennai where around 12 young and hearing impaired people
manage only the kitchen.

But the recently inaugurated KFC outlet in Kolkata will be the first in the country where
hearing-impaired young people will interact with customers, take orders, serve food on
the table, clean the restaurant as well as manage the kitchen.
The KFC outlet in Kolkata also employs around eight normal people who can take orders
on phone. They will also be of assistance, in case there are any communication problems
with the hearing impaired colleagues while taking orders.

According to Unnat Varma, marketing director of KFC India, “We thought of employing
the hearing impaired at KFC outlet as part of our corporate social responsibility. All our
special employees at the Kolkata outlet are trained in lip-reading and sign language, so
they can lip-read and take orders from customers. They have been extensively trained on
how to take orders and understand customer preferences. Similarly, the other KFC
employees also had to be trained in communicating with the hearing impaired.”
“Globally, KFC’s outlets in Singapore and Middle East employ hearing impaired at its
restaurants, for kitchen as well as customer interaction levels,” Varma said, without
divulging how many hearing impaired are globally employed at its outlets.

For its Kolkata outlet, KFC joined hands with ‘Silence’, a Kolkata-based NGO to supply
young hearing impaired boys and girls to manage the restaurant. According to Subroto
Majumdar of Silence, “We have been working with hearing impaired people since 1979.
We advertise in newspapers and ask the hearing impaired to join us for employment. We
also train them in finding employment elsewhere as we cannot accommodate everyone.”
Silence accepts any hearing impaired person who has completed education up to class
VIII. Silence offers courses to them so that they can be employable.

A one-year art and craft course at Silence costs Rs 500, while a six-month computer
education course costs Rs 288. Certificates are awarded by the Jadavpur University, one
of the premier universities in Kolkata. Silence currently employs 105 people, of which 90
are hearing impaired.

23
“So far, we have employed women at our store in Kolkata which sells handicrafts. The
yearly turnover of this store is Rs 1.5 crore. Our boys and girls have also got employed
with ITC hotels for housekeeping jobs, with Pepsi and now with KFC,” Majumdar said.
On an average, these hearing impaired boys and girls earn between Rs 2,000 and Rs
3,000, in addition to one meal a day, provident fund and uniforms.

Majumdar added, “The hearing impaired in India don’t get employment readily, no
matter what the government claims. It is only companies like KFC, Pepsi, ITC, and
others, who come forward and employ our students. Experience will reveal that most
special employees are more committed to their jobs and more hardworking than the rest.
Hopefully, more companies will follow suit.”

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 KFC CSR-PAKISTAN

KFC PAKISTAN (PVT) LIMITED

602, 6TH FLOOR, CLIFTON CENTRE

::.Registered Office Address:
KEHKASHAN-V,
::.AUTHORISED CAPITAL: 1000000
::.PAID UP CAPITAL: 200
::.CEO NAME: MR. MISBAHUDDIN AHMED
5-C, ASKARI SOCIETY KARACHI CANTT,
::.CEO ADDRESS:
KARACHI
::.INCORPORATE DATE: 10/14/1996
::.AUTHORISED CAPITAL
100000
SHARES:
::.PAID UP CAPITAL
20
SHARES:

KFC handshake for hearing impaired

In Pakistan, the first KFC outlet with impaired

persons was opened in Karachi.
Local firm Cupola, Pakistan Ltd is behind the Karachi
venture, and it plans to open two more outlets in the
next two months that rely on employees with
differences. The company has a charitable foundation
(the Cupola Care Foundation), which has been active in educational initiatives (such as
the provision of libraries and staff and educational support for underprivileged children).
However, this venture is aimed at providing disabled persons with job opportunities and
to promote effective communication between with and without disabilities. It also allows
the business community to see that hearing and speech impaired people can be just as
effective employees as anybody else. Cupola CEO Rafiq Rangoonwala was the man
behind the drive to open Pakistan first food outlet run entirely by disabled staff. His
immediate plans involved opening outlets in Lahore and Pindi using the same model.

However, it has been a challenge to identify and train staff. 30 prospective employees
were chosen from local deaf school. They underwent regular KFC training, which took
six weeks. Additionally, the Gulshan e-Iqbal outlet required modifications for the new
staff. For instance, there are no bells in the restaurant. Cupola installed light bulbs instead
to let staff know when meals had been cooked. Menus are illustrative so that customers
who can sign can simply point to the meal they desire. Working at the restaurant has
provided significant opportunities to several of the staff. When Anam Zahid, a young,
hearing impaired female college student, told her family that she wanted a part-time job,

25
they were concerned and initially hesitant. When she learnt of a KFC outlet hiring deaf
staff, however, her family was very supportive, believing that the environment was safe
and secure. Asadullah Siddiqui, 20, says he was initially nervous about interacting with
normal people but he now feels proud about what he achieved. Others have reported
improved self esteem and believe that people no longer look at them with pity. Being
hearing impaired in Pakistan can as anywhere be a challenge. The opportunities provided
at the new outlet are a significant step forward in a country where disabilities can lead
people to live in a cocoon. Working with colleagues with similar disabilities has enabled
the staff to grow in confidence.

KFC has taken the initiative to bring the handicapped into the mainstream.

KFC has ventured into serving the community in a meaningful manner, by providing
employment to a section of society that is often ignored. While the government has
promised aid to schools for the deaf and dumb (such as DEWA), KFC is providing a
public service and employment opportunities with equal pay (offerred to unimpaired
employees) to these individuals.

Nasir Haq Nawaz admits (via a translator) that prior to being employed with KFC, he
was sitting at home getting frustrated with a useless Bachelors degree in his hands, and
often he would get 'hyper'. However, following employment at KFC he has become
happier and feels useful.

Anum Zahid, a young girl who wears spectacles, dons a hijab and sports a sunny smile, is
a student of Intermediate at DEWA. Along with studying she is working at KFC, handing
over her salary to her father. Naturally, being able to earn has developed in her a new
kind of confidence. She positively asserts that, "Customers give no trouble at all," and
that she is "very happy working at KFC."

KFC has given the hearing- impaired individuals a sense of worth, having a 'positively-
discriminatory' employment policy of hiring only hearing impaired individuals at the
particular branch; however it is no pushover, for a minimum educational qualification
exists of holding at least a Matriculation degree. KFC has opened similar branches
employing the hearing impaired in Egypt and Malaysia and plans to open one soon in
Lahore as well. The effort deserves a lot of appreciation. In a country, where public
sector spending by the government is at a minimum, a corporation's effort acquires an
even greater significance.

However important as it is to locate a corporation's actions in context of pushing up

profits, in a country like Pakistan where the disabled face enormous adversity, KFC's
endeavour remains praiseworthy.

CONCLUSION

26
The Kentucky Fried Chicken Corporation is a very successful company that has grown to
be the fast food giant it is today through good management practices and good planning.
Their mission statement is very clear: recognition is key. They are all about diversity and
helping people grow in any way they can, and focus on customer satisfaction as well.
Their parent corporation, Yum! Brands, Inc., states that they want to put a Yum! on
people’s faces around the world. Their goals include being the best in the business, which
they have definitely accomplished, and focusing on customer satisfaction as a major part
of their environment. KFC desires to offer good food, comeback value, and customer-
focused teams to consumers throughout the world; they want to have loyal customers
who will come back time and time again to enjoy their food.

From its start in 1939 all the way to the present date, KFC has been a hit in the fast food
industry. Their company history is pretty incredible, especially watching huge sums of
money accumulate for sale as the company passed from hand to hand from John Brown
Jr., to RJR, to Heublin Inc, to PepsiCo, to Tricon Global Industries, and finally to Yum!
Brands, Inc. The company has done a lot for the community and kids all over the world.
KFC has grown to be a huge network of franchises around the globe; there are a total of
13,266 KFC franchises around the world today – 5,525 of those are in the United States
alone.

KFC has created a strategy that is focuses on strength and opportunity. They want to
expand internationally, offer consumers more choices at their restaurants, and provide
good services to their customers. They have incorporated a growth strategy into their
company because they fully intend to be the largest fast food chicken corporation in the
world; they seem to have already accomplished this goal, but also intend to stay well
ahead in the game by franchising KFC buildings throughout every country in the world.

Kentucky Fried Chicken part of a divisional structure, one in which departments are
grouped together according to the outputs of the organization and each separate division
is responsible for producing one single item or product. KFC is part of the divisional
structure of Yum! Brands, Inc., their parent corporation. It is one huge organization that
oversees several smaller companies, including Long John Silvers, Taco Bell, Pizza Hut,
and KFC. KFC shows that it is a divisional structure through many aspects – first and
foremost being through focusing the attention of their managers and employees on the
outcome and results for the customer or the location. Because the environment can have
a great deal to do with a restaurant, they are willing and responsive to change, are quite
flexible within the organization. KFC’s structure within the individual companies is both
mechanistic and organic – they are very structured as far as rules and stuff goes, but have
a team environment where everyone works together and decides how to solve a problem
or work something out.

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Kentucky Fried Chicken exhibits culture through employees by having a wide range of
diversity. There are 7,741 KFC’s in other countries. People and employees belonging to
an ethnic group often bring their cultures with them, sometimes creating subcultures.
These subcultures are often derived from different customs, values, languages, traditions,
and beliefs. Since Kentucky Fried Chicken values diversity, their management looks for
ways to create benefits for the entire organization. Since the employees shape the
company’s culture, it is very important to KFC that their employees have a chance to
interact and grow with a lot of different people, both through employee and customer
relations.

There are many examples of employee motivation that KFC and their parent company,
Yum! Brands, have incorporated to empower and stimulate their employees. Not only
are the employees offered an inspiring vision and mission statement, but they also have a
set of founding truths with which to adhere. Some of these truths include working on
people skills…that satisfied customers and profitability will follow; responding to the
voice of a customer instead of just listening; quality in everything they do, especially the
food; recognition shows that they care…and customers leave when they don’t. They also
have a good training program for new employees and encourage diversity amongst their
employees.

KFC has a supplier code of ethics that they use for the ethical treatment of the chickens
used in the food they make. Ethical conduct is a big issue within the company; they place
high value on honest employees and ethical treatment of everyone, customer, manager,
and employee alike.

The Kentucky Fried Chicken Corporation has done an excellent job in the consumer
market, both domestically and abroad. Not only do they do a wonderful job of planning,
organizing, staffing, leading, and controlling, but they have been very successful at
achieving their goals as well. Having done extensive research on the company and its
parent corporation, I feel like KFC has been pretty successful overall and has done a
good job with hiring and retaining good employees and taking care of their consumer
base in every way possible. As KFC reaches their goals, they continue to set higher and
higher standards for the company to attain one day; this is a good business practice in
order to maintain a lead over competitive companies such as Chick-fil-a, KFC’s leading
competitor.

As a result of this project, we have learned a lot about the company itself as well as Yum!
Brands, Inc., and about the history and background of KFC as a whole. There is a lot that
goes on in the franchising world that we never really knew anything about until doing the
research that went into preparing for this project/presentation. KFC’s grand strategy and
the organization as a whole is very impressive; through all this research I (Sally) have
gained a lot of respect and admiration for what they’ve been through to become the giant,
amazingly popular franchising company they are today.

28
 REFERENCES

⇒ www.google.com
⇒ www.answers.com
⇒ www.kfc.com
⇒ www.kfcpakistan.com
⇒ Mr. Waseem.
Manager KFC, Satellite Town, Rwp.
⇒ Mr. Waqar.
Asstt. Manager KFC, Satellite Town, Rwp.

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 DECLARATION OF FAIRNESS

No portion of this work presented in this dissertation has been submitted in support of
any other award or qualification either in this institution or elsewhere.

The information being given in this project is right and correct up to the information
given on the web site and given to us by the Manager, KFC Satellite Town. And
information used is after his permission.

If any portion of this work is to be found illegally copied, the university has the right to
cancel this project without justification.

30