Business Ethics and CSR case study on KFC

The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India.

KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavour enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill- treatment of birds in KFC's poultry farms.

However, undeterred by the protests by PETA and other animal rights organizations, KFC planned a massive expansion program in India.

Problems for KFC

- Protests by farmers led by the Karnataka Rajya Ryote Sangha (KRRS) & the farmers leader was Nanjundaswamy whoused the term junk food? against KFC.

- Protests by cultural & Economic activists.- Protests by PETA in the late 1990s. - Support of celebrities against KFC

Present condition of KFC in India

There is more to KFC than great food. Now KFC promote education, diversity and animal welfare in a number of positive ways. YUM! Brands, Inc. ("Yum") is committed to conducting its business in an ethical, legal and socially responsible manner. KFC is as committed to the environment as we are to our food and customers and committed to the humane treatment of animals

Read the case study above and answer ALL the questions below:

Question 1

Discuss in your own words if KFC, when entering India in 1995, followed the socioeconomic view to social responsibility? Refer to the case study to substantiate your answer.

Question 2

Ethics is the study of what is good and evil, right and wrong, and just and unjust.

Refer to the case study and discuss whether KFC when entering India in 1995 was behaving ethically. With reference to the case study, discuss whether KFC India has now adopted a value oriented ethical approach. Explain to management the benefits of being an ethical organisation.

Question 3

In the BGS stakeholder model, the business firm is at the center of a set of mutual relationships with persons and groups known as stakeholders.

Discuss how KFC Indias behaviour in 1995 may have affected their relationships with the primary stakeholders.