McDonald's Ethics and Corporate Responsibility

This assignment delves into the ethical dilemmas faced by McDonald's Corporation. Students are tasked with examining various controversies related to the company, such as its use of toys that perpetuate gender stereotypes, its sponsorships of events like the Olympics, and the recall of fitness trackers due to safety concerns. The analysis should incorporate a utilitarian ethical framework to evaluate the potential consequences of these actions.

RUNNING HEAD: MANAGEMENT THEORY AND PRACTICE 1
ETHICS LEADERSHIP & DECISION MAKING
MANAGEMENT THEORY AND PRACTICE
SUBMITTED BY:

Ethics Leadership and decision Making 2
Contents
Introduction................................................................................................................................................3
Background................................................................................................................................................4
Scope......................................................................................................................................................5
The ethical Dilemma..................................................................................................................................5
Implication of Kantianism Theory.............................................................................................................8
Role of a leader..........................................................................................................................................8
Recommendations....................................................................................................................................10
Conclusion................................................................................................................................................11
References................................................................................................................................................12

Ethics Leadership and decision Making 3
Introduction
Ethical dilemmas are common to a real world business organization. Ethical dilemmas
are the common phenomenon that takes place frequently in the organization. It is a situation
where an individual is unable to find out the difference between right and wrong. Employees
have to deal with the organizational pressure that leads to an accumulated pressure. The choice
regarding the organization is developed based on the unethical practices. Excessive competition
in the business atmosphere leads to use of unethical practices at work. Large-sized business
organization has a tendency to overlook the ethical dilemma. Whistle blowers are hiding due to
the fear of management (Broad, 2014). Hence Ethical dilemma has become an extremely
pressurizing situation for the employees and the management. Pressure to perform well from the
management is driving the employees into wrong direction. Employees have to perform under
such conditions making it into a nightmare. The unethical business practice is questioning the
credibility of employees and management. In the recent time, Organizations like Volkswagen,
Johnson and Johnson, Samsung and McDonalds gained widespread criticism due to their
unethical practices (Broad, 2014).
The report therefore review the unethical practices followed by McDonalds in 2016 during
theroid Olympics. The largest burger restaurant chain is known for selling toys with the happy
meal. Over the years, they have made sophisticated changes in the toys depending on thronging
market trend. In 2016 Olympics the Brand introduced Step-It, a pint-sized step counter for
children. The watch-like device was introduced by McDonalds to attract kids to buy a happy
meal. The watch was manufactured for the kids to monitor their daily physical activities. Dozens
of users stated developing skin irritation though these watches. Record of such incidences has
this has brought attention of the world media and created an anger in the global market (CBC
News, 2016).

Ethics Leadership and decision Making 4
Background
McDonalds has a long history of working with the Olympic committee. It has been a loyal
sponsor since a very long time. The restaurant chain is famous among the kids for the toys that
give as a complementary gift with the happy meal. In 2016 Olympics the Brand introduced Step-
It, a pint-sized step counter for children. The watch-like device was introduced by McDonalds to
attract kids to buy a happy meal. The device was manufactured with a clear motive to attract
more kids. The idea was to generate curiosity among kids to promote getting in shape. The
watches were made with a cheap material in order to attract more number of kids (Charlebois,
2016).
The information regarding the skin irritation forced the restaurant chain to stop the sale of
happy meals toys. The issue gained nation-wide protest and brought the attention of media
agencies. The unethical practice to gross up the profits triggered the nationwide agitation against
the brand during the Rio Olympic. This was not the first kind of incidence registered in the past
years. There were many such incidences where McDonalds came under highlights due to its
unethical practice (Forbes. 2017). The happy meal strategy was built to attract attention of kids.
The unethical dilemma here was to increase the revenue with less investment. The happy meal
strategy was developed by making vast investment on the advertisements. The dilemma arises
when the company wants to make profit through wrongful mean. McDonalds has been making
news headlines because of its unhealthy menu. Most of the health organization is blaming the
restaurant chain for their unhealthy menu. All these business practices followed by McDonalds
are affecting long term profitability. The management turn blind eye to ethical breaches resulting
in such incidences. There is an extreme level of competition among the business enterprise to
make profits. This has resulted in unethical business practices have created a difficulty in
managing the situation (Gibison, 2017).
The report provides information regarding the ethical dilemma faced by McDonalds
during the Rio Olympics. The basic purpose is to understand the concept of Ethical Dilemma and
to identify the issues faced by the company in meeting the targets. CSR is an important part in an
organization. For the purpose of managing the organization it is important to understand the
functions of ethical dilemma. It is important for a business organization to follow an ethical

Ethics Leadership and decision Making 5
corporate culture this will guarantee a regular growth within an organization. The unethical
business practices are creating problem for the economy on a long run (Gorey, 2016).
Scope
To identify the ethical issue and to highlights the reason behind such a situation. The
harmful effects of ethical dilemma can be seen in the regular business practice. Large-sized
business organizations generally avoid the concept of ethical dilemma. They only look for
making profits that but the integrity of the organization questionable. Pressure to perform well
from the management is driving the employees into wrong direction. Employees have to perform
under such conditions making it into a nightmare.
The unethical activities at Mc Donald’s have affected the organization badly. These
business practices are harmful for their reputation itself. The unethical practice was highlighted
by the media houses. The report focus on the factors that forces an organization to function
unethically.
The ethical Dilemma
McDonalds is known across the world for its hazardous menu causing tallness. The menu
offered by the brand causes diseases like obesity, infections etc. This has created an issue in
managing health of kids. There are different unethical activities carried by McDonalds bringing
notice of health organizations to the issue.
The Happy Meal by McDonalds represents approximately 10 percent of the total sales of
McDonalds. Approximately 1.5 billion happy meals are sold internationally. The toys provided
by McDonalds add to the bottom line of the company. Recently, San Francisco banned the
bargain practice followed by the companies as its strategy. All these business tactics act as a
dime activity in the era of competition. The concept of Social license is a skill used by the
business organizations in order to operate with confidence. This is to deal with the lawful
activities followed by the organization. As per The existing policies, the company is using supply
chain transparency, environmental stewardship and gender equality for managing the team. All
These resources have critical issue to the organization in dealing with the challenging industry

Ethics Leadership and decision Making 6
(Hoffman, Frederick & Schwartz, 2014). The happy meal has grabbed attention of many people
across the world. In Chile, the fast food chains are not allowed to give free toys with the happy
meal. In few countries McDonalds is giving away books with the happy meal. The toys sold by
McDonalds are able to grab Children imagination for a few hours at most. It is objected by few
that giving away of happy meal is a waste. The moral obligation while giving away resides with
the food restaurant chain. There is a change in the business practices, what was satisfactory a few
years ago are not amused in the present business environment. The brand needs to establish itself
as a pioneer in the market through healthy habits (Joiner, 2016). There are convinced flaws in
the watches design that caused skin abrasions. It affected the sudden recall from all over the
world. Many international brands are using this technique to entice children across the globe.
The StepIt has brings the attention of whole world on the ethical and moral dimensions.
Companies are only focusing on the finance. They are using business practices that are not good
for the organization (Kroc, 2016). McDonald’s toy distribution strategy is under question due to
the lack of nutritional value. Consumers are questioning the organizational practices. In order to
manage a balance between the ethical practices it has to focus on an effective way to meet the
result. As an alternative of distributing toys it should find out effective strategies to position itself
at a competitive place. Distribution of toys with the happy meal is the brand strategy. The use
of unethical practice in business is disruptive for gaining long term advantage (Marczewski,
2016). The recent issue At Rio Olympics is an example of ethical dilemma. The unethical
practice by McDonalds to sell off toys made of cheap quality is a serious ethical issue. It is
strange to imagine that the companies are putting a lot of effort to drain income. McDonalds has
faced issues due to lesser nutritional value in their menu. The happy meals sold at McDonalds
are considered as one of the major reasons of obesity in kids. Like other restaurant chain shifting
their focus on the social responsibility; McDonalds has a responsibility of developing itself as a
healthy brand among kids (Meith, 2007). The unethical practices are creating problem hence
affecting the market position on a long term. The lesser nutritional value in the food is one of the
reason affecting the market value of the brand. Many voluntary organizations are raising concern
against the happy meals and distribution toys along with it. However, it is important from the
point of view of global responsibility towards nutritional value (Nill, 2015). By Selling happy
meal and StepIt together is contradictory in itself. How is it possible to expect health by eating

Ethics Leadership and decision Making 7
junk food? The cheap devise sold by the brand had a purpose to attract kids. This strategy
initially helped in building revenue but later changed the complete situation (Press
Association.2016).
Implication of Kantianism Theory
The theory focuses on developing healthy habit in consistency with the organization.
The purpose of this theory is to state the action of making a rational choice regarding the ethical
values. The company need to works ethically without using unethical mean. This means, using a
path where the organization is able to manage the organizational cultural value. It is important
for the organization to focus on managing the ethical practice in an effective way. The issue seen
in this situation is regarding the ethical breaches. These ethical breaches seen in the recent time
has a long term impact on the organization. In order to make profit, companies are using
unethical means. As per Kantianism Theory the organization using such a policy can be
justifiable from the point of view of company. The only purpose of the organization is to make
profit through any mean. It’s the market that can cause potential harm to kids. It is important
from the point of view of a brand working from a very long time. These issues need to be
highlighted in order to gain profitable interest. It is recommended to behave ethically on a long
run in order to avoid the situation (Queerty2011).
Role of a leader
A leader has a role to look after the organizational operations. In the existing competitive
situation, it is evident to manage the organization by managing the individual interest. It is the
responsibility of a leader to give a correct brief regarding the ethical issues. It is important to
beware about the changes tiling place in the business environment. Awareness is important for
the organization in order to deal with the issues. By focusing on every individual employee, it is
possible to manage the organization in an effective way. These policies are important to be
curate by the leader. It is his duty to generate awareness about the issue taking place in the
organization. The employees need to be informed about the ethical violations in the organization
(winter, 2011). It is their responsibility to imbibe formal culture about the organization in order

Ethics Leadership and decision Making 8
to gain market effectiveness. It is the fiduciary duty of the manager to act in the good faith of the
organization. It this way they can put forward the required changes in order to gain goodwill.
These changes are important to manage the activities in a better way (Santa Carla
University.2014).
In the given situation, it is the duty of the manager to lead the changes and add
transparency into the process. In this situation, it is important to manage the business enterprise
carefully by imparting training and development. The systematic training and development
regarding such activities need to be given properly at the time of employee orientate. Employees
under extreme pressure work unethically (Weekly, 2017). In order to manage such a situation, it
is important to derive an effective plan by imbibing planning and development. These factors are
important for considering the organizational growth and development. While working in such a
situation, the manger has to focus on each and every individual in order to gain competitive
market advantage (Sheehan, 2013).
There are certain incidences where a company is making a continuous mistake through
unethical business practice. Being a market leader in a fast food chain it is there primary duty to
focus efficiently by looking at ethical issues. The company just to make enormous profit cannot
use unethical business practices. This will affect the business and various other -functions on the
long run. Companies like McDonalds are attracting audience especially kids through
advertisements. It is the part of their promotional activities. They have an accountability to act
ethically in the favor of the whole society. The overall purpose of a global company is to meet
corporate social responsibility in an effective way (Press Association, 2016). A manger holds an
important position that makes them accountable for ethical reasons. They need to fulfill an
obligation towards the organization as well by monitoring ethical practices. McDonalds cannot
get away with the responsibility towards the society. This is becoming important from the part
of the organization to check booming measures to carry out tasks. The occurrence of such event
in the past has triggered issues in the organization requesting a need for an effective measure in
order to meet the future needs (Stein, 2016). In this situation it is important to look out for an
effective way facilitating organization to grow. A leader has to set a plan in order it avoid such a
situation. This is only possible if the employs are ready to imbibe the organizational culture. This

Ethics Leadership and decision Making 9
will let them work more efficiently without any external pressure to perform. A leader has to set
an example in order to manage issues. Ethical dilemma occurs when an employee try to push
himself in an unethical way. These situations are harmful for the organization on long run. This
is having a significant impact in terms of managing the organization (Trevino & Nelson, 2016).
This is required for a business organization in the international market. Incidence like this is an
eye-opener. People tend to get information regarding the bad practices followed by the Multi-
national organization. This only created problem s in the organization. The credibility is
important aspect for managing the credibility for a long term. For this reason it is evident to set
an example for the whole world by meeting the existing policies (The Associated Press2016).
Recommendations
Ethical dilemma is common in today’s competitive business environment. In order to
manage such a situation, it is important to come up with an effective plan to reduce the ill-effect
it is having on the business environment. It is recommended that McDonalds should practice in
an effective way by introducing systematic strategies. The current target market of McDonalds is
kids for the reason it is expected from the brand to follow ethical measures setting example for
the whole society (Tran, et al 2015). The business leaders need to create competitive market
strategy by keeping in mind the ethical values. The employees should not be forced to perform
above expectations. This might affect the organization globally. For McDonalds it is important
to come up with an effective business strategy to meet the results. The company need to works
ethically without using unethical mean (Tylee, 2016). This means, using a path where the
organization is able to manage the organizational cultural value. There is a growing necessity to
meet the compliance in regard with meeting the effective results. There is a need of a strong
legal compliance in order to refer this issue. This issue is currently affecting the organizational
growth and development and has a long-lasting impact on its goodwill. It is responsibility of
McDonalds to form a compliance team. This team should be given a responsibility to deal with
such a situation. There is a responsibility to develop an effective plan in order to deal with the
situation (Vaughn, 2015).

Ethics Leadership and decision Making 10
Conclusion
The changes in global working condition are putting an impact on the organizational
ethical values. It is important for an organization to look after the problems it faces in meeting
the target. This is important for focusing on organizational growth and development on a long
run. For the purpose of bringing integrity, it is evident to manage an effective business
framework relocating the factors in an effective way. The company need to works ethically
without using unethical mean. This means, using a path where the organization is able to manage
the organizational cultural value. It is important for the organization to focus on managing the
ethical practice in an effective way. CSR practices are important for an organization to meet the
objectives. The report is based on concept regarding the organizational ethical dilemma and the
process to manage. It describes the threats associated with the organization and how one can
reduce such situations. As per The existing policies, the company is using supply chain
transparency, environmental stewardship and gender equality for managing the team. Hence, it is
an important practice for a business organization to follow an effective way to overcome ethical
dilemma.
References
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