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Unethical Companies: McDonalds May 14, 2010 ethicalfootprint

Mostly everyone will enjoy McDonalds every once in a while, even if you arent a fan of fast food. While the food may be cheap, it may come at more of a cost to the environment and the global economy than one might think.

McDonalds has a negative impact on the environment in more ways than one. Aside from the pollution from factories where the food is produced, the unusable waste from nearly all the food they sell, and the massive amounts of power and energy that are required to keep all of the branches up and running, this corporation is destroying natural rain forests. According to http://www.dmoz.org/Society/Issues/Business/Allegedly_Unethical_Firms/McDonalds/, McDonalds likes to purchase their meat from privatised farms, which is not a problem in and of itself. The conflict arises when these privatised farmlands are built on the land where a lush rainforest once resided. So not only is McDonalds polluting our air, but they are destroying a large part of what would help to clean it out. The trees that are levelled do more than just clean the air, though. They are also homes to thousands of animals that are likely killed or made homeless as the trees are torn down. This is not exactly a healthy step in making our world a better place.

The people at McDonalds treat their employees no better than they treat our environment. McDonalds staff are frequently underpaid for the amount of time that they work (which often extends into illegal amounts of labour hours), get little to no benefits along with this gross underpayment, and are oftentimes forced to work in unhealthy and unsanitary conditions. The farmers from which they get their food are also generally underpaid for the amount of produce and meat which they sell to the corporation, particularly considering the cost that many of these farms have regarding the environment and health of the farm workers.

McDonalds claims to give back to the community and the environment by working with schools and local organisations, but what they repay isnt nearly enough to cover the damages that theyve caused. By: Jennifer Reese

McDonalds is trying to get research on whether health conscious individuals will eat at their restaurants. They conduct a
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survey on 1500 health conscious respondents and receive two different responses. The first results states that 92% of respondents would not eat at McDonalds. The next result shows that of the 1500 respondents, 89% feel that McDonalds offers healthy meal options. The question now relies on an ethical issue, which information should McDonalds market to the public? Let's think about this, McDonalds has recently spent million of dollars trying to advertise and convince the public that McDonalds can be a healthy option for health conscious individuals. They have added variety to their menu including items like; apples, salads, grilled chicken wraps, or a fruit and yougurt parfait. These items have given consumers a better variety of healthy options to substitute on a diet. Now, what would I do if I had to report this information to the V.P. of McDonalds? I would be honest with my results. I would tell him that its almost certain that health conscious individuals would not eat at the local fast food chains. But, all hope is not lost because the respondents did feel that they are offering healthy options. I would advise the V.P. to change his promotion strategy to keep targeting its healthy eating options. It's going to take more time to convince health conscious customers to dine in. You don't want to lie to your customers and try to get them to believe that other individuals that are worried about their weight are still eating fast food. You will mislead the public and you might tarnish the company's reputation. I would advise him to use these results to keep reinforcing to the public that McDonalds does have healthy options! They need to keep running commercial ads and print ads that are persuading consumers that you can still eat healthy at an affordable price. Many people still view McDonalds as the usual high calorie, high fat content fast food chain. It will continue to take time reinforcing the public about this issue. It's better to be honest with your customers and gain their trust, then to mislead them and hinder future business.

For the next case, I am choosing the ethical issue with the Home Depot. If I needed 10 people in a focus group between the ages of 45-55 and I already had 9 applicants, I would make sure the 10 person also fit that critera. It would be convenient to realize that my father would easily fall into that category and make the 10 peson. However, I would be lying to the Home Depot because my father doesn't fall between the age limit. I would be giving biased information and ultimately hurting the accuracy of the focus group. Even though the company might never find out that I cheated them with the exploratory research, it would still bother me to know that I was lying to my employers. I would pick to do the right thing and keep looking for a 10 person in Atlanta, Georgia to continue a truthful and honest survey for Home Depot.

McDonalds: A Good Image with Bad Ethics

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Aimee Gibison Introduction McDonalds Corporation has been growing and spreading internationally for the past three decades. Although McDonalds seems convenient, cheap and clean there are many negative aspects of the business. In spite of paying their employees low wages and negatively impacting other cultures, McDonalds and chains like it, have managed to position themselves as a positive piece of Americana. McDonalds promotes its positive image and products with greasy fries, and a clown named Ronald McDonald. The unethical practices of this large fast food corporation are known but do not seem to detract from the all-American image that the corporation seeks to project. History In the 1950s a new style of eating was introduced by brothers, Dick and Mac Donald. Their original small burger stand was soon transformed into one of the largest, well-known transnational corporations. Ray Kroc, a milk shake machine salesman bought McDonalds from the Donald brothers and made the burger shack into a business characterized by conformity and uniformity. Kroc believed fervently in the ethic of mass production (Schlosser, 2004). Under the influence of this mass production ethic, McDonalds developed new, uniform production methods such as using frozen beef patties, instead of fresh ground beef, and developing a genetically-modified potato rather than using locally grown produce to ensure that all McDonalds fries have the same uniform taste. McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain. The company is known for its burgers and fries which it sells through 31,000 fast-food restaurants in over 119 countries (McDonalds Corporation, 2006). With so many McDonalds located world-wide, many find it somewhat refreshing to see a familiar place when traveling in unfamiliar places. By homogenizing products and appearance of the stores, McDonalds sells this feeling of comfort and familiarity. Spreading Out to New Markets Because it is internationally known and markets a homogeneous image, McDonalds remains a household name with offerings known for a uniform taste. But McDonalds is trying to reach a broader market as well. The corporation is trying to reach out to a healthier crowd of customers by releasing salads with fruits and vegetables.

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To reach international customers, the company has also added specialty foods for different countries. The McArabia (chicken patties on unleavened bread with garlic sauce and onion), the McPepper (a double-patty burger seasoned with black pepper sauce), the Bulgogi Korean pork barbecue sandwich, a teriyaki pork burger with lemon-flavored mayonnaise, and, soon to find its way onto the menu, the Mushroom Pinwheel, a five-pointed pastry concoction filled with chicken and mushrooms, are all specialty menu items for different cultures in some Chinese or Middle Eastern countries (Old McDonalds has some smarts in China, 2006). McDonalds also donates a portion of their earnings to Ronald McDonald houses, located across America, which helps children with life threatening illnesses. Efforts like this portray a corporation committed to the welfare of their customers. However, while the overall image of McDonalds is that of a wholesome, family oriented business, there are contradictions to this image. The Ethical Problems Big Business Domestically Although McDonalds makes the effort to support children with life threatening illnesses, the diet offered by this corporation and others contributes to obesity, heart disease, asthma, and possibly mad cow disease. What kind of message are we giving our children when we promote healthy eating, and at least 59 of the nation's 250 children's hospitals have fast-food restaurants? (Tanner, 2006) Environmentally, McDonalds practices are also questionable. Unlike a fresh ground beef patty at a local butcher shop, a typical fast-food hamburger patty contains meat from more than one thousand different cattle, raised in as many as five countries (Schlosser, 2004). This raises the possibility of a particular patty containing contaminants of unknown origin. As noted previously, instead of locally grown potatoes, the corporation uses their own genetically modified potatoes. The practices of using food from extreme distances, is problematic environmentally. From a public health perspective, the use of beef from multiple sources makes contaminated sources far more difficult to trace. Impact on Foreign Cultures Not only do McDonalds products harm individual and environmental well-being, they are also having an influence on some East Asian cultures with the corporations entry into those countries. Critics claim that the rapid spread of McDonalds and its fast-food rivals undermines indigenous cuisines and helps create a homogenous, global culture (Watson, 2006). Chinese

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parents want to connect their children to the world outside of China, so they reward them with a trip to McDonalds, but in so doing they are also taking away from their culture. In twenty years [Yunxiang Yan, a UCLA anthropologist] predicts, young people in Beijing (like their counterparts in Hong Kong today) will not even care about the foreign origin of McDonalds which will be serving ordinary food to people more interested in getting a quick meal than in having a cultural experience (Watson, 2006). Another major change brought to the East by the entry by McDonalds and American corporations into Asian countries, is the new obsession with American culture. Prior to the arrival of McDonalds, festivities marking youngsters specific birth dates were unknown in most of East Asia. In Hong Kong, for instance, lunar-calendar dates of birth were recorded for use in later life- to help match prospective marriage partners horoscopes or choose an auspicious burial date (Watson, 2006). With the presence of McDonalds restaurants in Asian countries, and the accompanying American cultural norms, children in these countries are recognizing the potential for celebration of individual birthdays. McDonalds exploits this cultural change to market party packages to Chinese children who want to celebrate this new occasion. In many respects, McDonalds emergence in Asia is permanently altering culture, and norms of the past are being lost in their McDonalds party packages and Big Macs. In addition to contributing to cultural changes in China, McDonalds has offended other cultures through some of its actions. The chain has stirred up controversy with some United States Hindus, many vegetarians, and some Japanese. McDonald's, the fast food giant currently embroiled in a row concerning undisclosed beef flavoring in French fries, has made a formal apology to those it has offended (McDonalds resolves french fry dispute, 2002). This may seem like a petty dispute, but is not a small issue to Hindus who believe that the cow is sacred. In response to this offense to Hindus, vegetarians, and others, McDonalds offered an apology, and paid the groups ten million of dollars in settlement. In addition, fast food giant McDonalds is facing criticism in Japan after a number of its apple pies were found to contain a banned food coloring agent (McDonalds apple pies found to contain banned food coloring in Japan, 2006). In 15 McDonald locations across Japan there has been an apple pie recall due to the use of an illegal coloring agent known as azorubin. McDonalds has claimed that the substance is not harmful, using consumers in the European

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Union and Australia as examples where people consume apple pies containing azorubin, seemingly without ill effect. McDonalds has, however, recalled the pies and announced that they will no longer purchase their pies from the China-based factory using azorubin. Controversy in the United States Another controversy arose in a Southlake McDonalds because of a bacon ranch salad. Chrissy Haley, wife of an assistant coach of the Dallas Cowboys, found a rat in her salad after ordering that salad and a Happy Meal for her child. According to newspaper reports, Haley and her nanny found the dead rat under a large lettuce leaf in a shared salad. McDonalds has yet to respond, apologize, or even ask if the women are okay. Both women have had blood and stool samples tested repeatedly over the last five and a half months and are undergoing sessions with Dallas clinical psychologist Dr. Rycke Marshall (Whitt, 2006). Chrissy Haley, who has tested negative for any illness, is suing McDonalds for $1.7 million, for both the dead rodent in her salad and McDonalds response (or lack thereof) to the incident. The corporation has chosen not to cooperate during the course of the law suit, which was set to reach court in September 2007. Labor Relations Besides health issues, the company also has issues with its workers. The corporation pays minimum wage to their workers, who essentially do assembly line, factory-type work. If the work done by burger manufacturers and drive-thru cashiers were reclassified as factory work, that would add about 3.5 million manufacturing jobs to the U.S. economy, at a time when such jobs are rapidly being exported over seas. From a statistical point of view, it would make the U.S. seem like an industrial powerhouse once again, instead of an ageing superpower threatened by low-cost competitors (Schlosser, 2004). In the 31,000 McDonalds world wide, most of the workers get paid minimum wage in spite of the fact that the company is now worth more than a billion dollars. The Backlash There are an increasing number of people who speak out against McDonalds and similar corporations. George Ritzer is well known for his efforts to raise awareness of the impact of globalization and global corporations by speaking at different colleges around the country. In the article Nuggets of Wisdom author Madelyn Pennino refers to an Elizabethtown College assembly at which Ritzer spoke to students about the illusion created by McDonalds, of bargain prices and convenience for people ordering a super-sized meal (2006).

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In reality, this bigger, faster, and cheaper choice is actually not very convenient. Efficiency has become inefficient Ritzer said referencing the huge line waiting in the drive thru (Pennino, 2006). One of the goals of Ritzer and other anti-McDonalds activists is to spread awareness of real costs of doing business with the corporation and to make sure that the name McDonalds does not become synonymous with America around the world. Conclusion Over the past four decades McDonalds has been transformed from a local burger shack serving fresh beef patties, into a huge corporation using mass production methods to produce and sell their products. One of the results of this international expansion has been a number of books, articles, and even documentaries outlining practices deemed unethical. There are many things that might be done to address the ethical problems raised by the behavior of multinational corporations: laws, legal action and public pressure arising from activists. In the end, public awareness might be the most important tool. If individuals are enlightened about McDonalds practices and their impact on health, environmental pollution and culture change, we can choose to not patronize its restaurants. The action may not shut the McDonalds down, but it might limit the impact of the corporation. References McDonalds apple pies found to contain banned food coloring in Japan. (2006, September 23). MarketLine Business. McDonalds corporation. (2006, November 26).MarketLine Business. McDonalds resolves french fry dispute. (2002, June 6). MarketLine Business. Old McDonalds has some smarts in China. (2006, December 11). Chicago Sun Times. Retrieved March 2, 2007, from LexisNexis. Pennino, M. (2006, October 19). Nuggets of wisdom; Author paints picture of out fast-food culture. Intelligencer Journal. Retrieved March 2, 2006 from Lexis Nexis. Schlosser, E. (2004) Special report on slow food. In J. Johnson (Ed.), Global Issues, Local Arguments. Upper Saddle River, NJ: Pearson Education. Tanner, L. (2006, December 4). Study finds allowing fast food in kid hospitals sends mixed message to families. Chicago. Retrieved March 2, 2007, from LexisNexis.

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Watson, J. L.(2006) Chinas Big Mac attack. In J. Johnson (Ed.), Global Issues, Local Arguments. Upper Saddle River, NJ: Pearson Education. Whitt, R. (2005, November 23). I smell a McRat; McDonalds serves up a rodent then scurries for cover. Dallas Observer. Retrieved on April 20, 2007 from Lexis Nexis.

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