KFC in India Case Study Assignment (Ethical Issue) Essay

AbstractThe causa highlights the ethical issues involved in Kentucky hot up Chickens (KFC) championship operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFCs chickens did non adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three propagation more monosodium glutamate (popularly kn deliver as MSG, a flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for respectable word of Animals (PETA), an animal rights protection organization.PETA accused KFC of cruelty towards chickens and released a video immortalize showing the ill- sermon of birds in KFCs poultry farms. However, undeterred by the protests by PETA and other animal rights organizations, KFC planned a massive expanding upon program in India. (see http//www.icmr.icfai.org/casestudies/catalogue/Business%20Ethics/BECG044.htm) ObjectivesUnderstand t he significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country. value the need for protecting animal rights in developed and developing countries alike India.Understand the importance of ethics in doing business.Examine the reasons for protests of PETAIdentify solutions for KFCs problems in India. Key Terms KFC, Business Ethics, International Business, People for Ethical Treatment of Animals (PETA), Food Adulteration, Selling Junk Food, Cruelty against Animals, Animal benefit Legislation, KFCs Poultry Welfare Guidelines.Each bird whom KFC puts into a turning point or a bucket had a miserable life and a frightening death. People would be shocked to see our footage of a KFCproviders employee who walks through a barn, carelessly lighting lamps and letting flames impress on the terrified birds. The air inside these filthy barns reeks of ammonia fumes, reservation it difficult for the birds to breathe. No one with a grain of compassion should topical anestheticize foot in KFC.Ingrid Newkirk, Director, PETA.The chicken they serve is full of chemicals, and the birds are disposed hormones, antibiotics and arsenic chemicals to fatten them quickly.Nanjundaswamy.PROTEST AGAINST KFCOn August 20, 2003, a five-foot uplifted chicken complete with an ensemble of feathers and beak hobbled on a mates of crutches outside Kentucky Fried Chickens (KFC) Indian outlet in Bangalore. The chicken was brought by PETA (People for Ethical Treatment of Animals) activists, who carried placards reading, Quit India and Stop playacting Fowl (a pun on Foul).The chicken was placed at the centre and a peaceful protest was held against the alleged ill treatment of birds in KFCs poultry farms. Media persons were called to give the demonstration a wide coverage.Explaining the rationale behind the protest, Bijal Vachcharajani, special projects coordinator of PETA, said, Ours is the land of Gandhi. Just as 61 years back our leaders gave a call for colonizers to quit India, we as well as are saying we will not tolerate cruel multinationals. On the 61st anniversary of the Quit India movement, PETA India wrote a letter to the Managing Director of Tricon Restaurant International, the grow company of KFC, asking them to close their sole KFC outlet in India. They got no reply. PETA activists decided to protest against KFC by carrying crippled chicken, which represented the birds suffering in the KFCs farms.PETA claimed that after two years of intense campaigning to augment animal welfare standards in poultry farms, other foreign prodigal food eating houses operating in India like McDonalds and Burger King had modify the treatment of animals specially raised and slaughtered for food. Only KFC had not acted. Though PETA had nonionised other protests earlier, the crippled chicken campaign became the precursor for more intensive protests. PETAs was one of the many shows of protest against KFCs Indian outlet. bac kground knowledge NOTEKFC was founded by Harland Sanders (Sanders) in the early 1930s, when he started cooking and do food for hungry travellers who stopped by his service station in Corbin, Kentucky, US. He did not own a restaurant then, but served quite a little on his own dining table in the living living quarters of his service station. His chicken delicacies became popular and people started coming just for food. Kentucky Fried Chicken was born. Soon, Sanders moved across the street to a motel-cum-restaurant, later named Sanders philander & Cafe, that seated around 142 people.Over the next nine years, he meliorate his secret blend of 11 herbs and spices and the basic cooking technique of chicken. Sanders fame grew and he was given the title Kentucky Colonel by the state Governor in 1935 for his ploughshare to the states cuisine. Sanders restaurant business witnessed an unexpected halt in the early 1950s, when a new interstate highway was planned bypassing the townsfolk of Corbin. His restaurant flourished mainly due to the patronage of highway travellers. The new phylogenesis meant the end of this. Sanders change his restaurant operations. After settling all his bills, he was reduced to living on a meager $105 affectionate security cheque.But Sanders did not lose hope. Banking on the popularity of his product and confident(p) of his unique recipe for fried chicken, Sanders started franchising his chicken business in 1952. He called it Kentucky Fried Chicken. He travelled the length and breadth of the country by car, visiting as many restaurants as possible and cooking batches of chicken. If the restaurant owners liked his chicken, he entered into a handshake agreement that stipulated payment of a nickel for each plate of chicken sold by therestaurant.By 1964, Sanders franchised more than 600 chicken outlets in the US and Canada. The same year, he sold his interest in his company in the US for $2 billion to a group of investors. However, he rema ined the public spokesperson for the company. KFC grew rapidly down the stairs the new owners and issued shares to the public on March 17, 1966. In July 1971, KFC was acquired by Heublein Inc. for $285 million. By then, KFC had over 3,500 franchised and company-owned restaurants in the world.Sources/Links/ReferencesPeta protest KFC part 1Peta protest KFC part 2NY Times Articlehttp//www.ecomall.com/greenshopping/peta.htmhttp//www.japantoday.com/jp/news/245005http//www.foxnews.com/ fib/0,2933,115108,00.htmlhttp//multinationalmonitor.org/hyper/mm0196.03.htmlAnalysisThere are a number of issues relating to this incident that face the ethical and moral issues surrounding business. KFCs business in India leads to a wide range of direct and indirect employment related to the business as a result of the investment by the company. KFC claims that it does not own chicken the farms. How honest are the claims that KFC is making?How reliable are the claims do by those who oppose KFCs activi ties? What conflicts arise between the responsibilities that KFC has to the treatment of chickens and the local community, and to its shareholders, suppliers and employees, other external stakeholders? Your AssignmentThis is an independent assignment.Download and complete the KFC case analysis document. Save the document asnamed but by adding your conk out name then first to the end of the file name (separated by an underscore _ ) where indicated.In this documentAnswer the above questions.You are to interrogation this case using the above sources and others that you discover. Provide a work cited numerate only of those sources that you USE. . For full marks, use terminology and concepts from the course and its text. See the colour at the end of the KFC case analysis document. Submit your completed imitation of the KFC hard copy in anatomy and electronic copy to the class email address by deadline date (see class website for due and deadline dates). NO EXTENSION WILL BE ALLOWED .