Ethics in Franchising: Utilitarianism, Kantian and Virtue Analysis

This essay delves into the ethical considerations within the franchising business model, using the 7-Eleven case as a central example. It begins by defining franchising and highlighting the importance of compliance with franchisor policies. The paper then presents an argument against excessive supervision, suggesting that it could hinder franchise operations and unfairly impact ethical businesses. The core of the essay involves applying three ethical theories—utilitarianism, Kantian ethics, and virtue ethics—to analyze the 7-Eleven case, which involved wage fraud and exploitation of workers. The analysis explores how the company's actions align or conflict with each theory, considering consequences, duties, and character. The essay examines the manipulation of pay records, the involvement of company directors, and the impact on employees, particularly international students. The application of utilitarianism considers maximizing happiness, while Kantian ethics emphasizes duty and intentions. The conclusion provides an overall assessment of the ethical implications of the case.