BRH606: KFC's Child Labor Scandal and Business Impact Report

This report presents a comprehensive analysis of KFC's illegal employment of children, detailing the business challenges faced due to unethical practices. The report outlines the legal violations, specifically referencing the Children and Community Service Act, and the penalties imposed on KFC for employing children under the age of 15. It explores the negative impact on KFC's market value and customer perception, along with the company's responses and proposed solutions, such as changes to rostering software and employee training. The report includes suggestions for policy changes, recruitment strategies, and operational improvements, aiming to address the core issues and prevent future occurrences. It also includes a list of references to support the analysis. The report is a result of an assignment to analyze the business impact of KFC's illegal employment of children, providing insights into ethical considerations and suggesting possible improvements.

KFC Illegally Employ
Children for their Business
Name of the Student
Name of the University
Author note

Business Problem
 The famous chain of food outlet KFC is severely facing challenges in their business.
 It has been found guilty of employing children for running of their business.
 The business of KFC is getting highly effected in the current business scenario.
 KFC has been penalized $30,000 for being unethical and employing children in the
three shops at Perth.

Continued…
 As per Australia ABC news, there are 16 charges under which KFC outlets of West
Australia have found guilty having employed children to work.
 All the children were below the age of 15 years of age which is by law, unethical.
 The three outlets Ellenbrook, Forrestfield and Rockingham stores have child labors who
are working hectic day and night for KFC.
 These outlets are operated solely by Kentucky Fried Chicken Pty Ltd and therefore, it
has been accountable for this illegal deed.

 The outlets which are operated by KFC are only under the charge of The Department
of Labor Relations of illegal child labor practice.
 It operates successfully overall four number of outlets in the parts of Western Australia
and other outlets are running by some individual and independent companies those
are not indulged in this case.
 The company arrayed the rules and regulations as stated in the Children and
Community service act.
 As per the Act, the children ageing between 13 to 15 are not allowed to work before
6am and after 10 pm.
 KFC breached the contract of Children and Community Service Act, as it used to
stretched the shifts for the teenagers even after 10pm at night.
Continued…

Continued
 This created a negative impact on the customers.
 The company’s market price has strike down and partially spoiled its market and face
value.
 The company was charged heavy penalties.
 Somehow the law says, that any fast food industry can employ young labors but
cannot force them to work long shifts as starting before 6 am and contiue after 10 m
at night.
 The company was accused of exploiting children in the disguise of giving them the
employment.

Continued
 The allegations emerged out of Kentucky Fried Chicken Pty Ltd is putting to work the
children on particularly 153 different situations and conditions in the tight working
shifts that lasted up to10pm at night.
 Breaching of the Act charged penalties of up to $120,000.
 The company will going to face a deadly financial crisis as on every condition KFC has
committed mistakes and are going to be penalized.
 As per the scholars, the range of penalty should be moderate to high.
 Every members of the company must be penalized and it should serve as the warning
for the company from the court side.

Continued
 Nearly around one-fourth of153 unethical working shifts done by those children.
 These shifts are stretched after 12 at midnight.
 There were adverse situations where a small child mere of14 years completed at
1.17am after midnight.
 21 illegal shifts used to have continued on nights that disturbed the routine of ordinary
school timings.
 These children working in the company are forced to work under such adverse
situations which are next to the child exploitation.

List of Information
 According to Meredith Hammat from Unions WA, the charges of accusation on KFC
should taken on the serious note.
 She said that it is the extreme condition that the young people have to work for shifts
so long and even after midnight.
 She said that it is intolerable for her and the society to take upon this adversity and
exploitation of children.
 The scenario that has been created by KFC is obnoxious and likely to be penalized.

Continued
 She said that, that these adverse working shifts are hazardous for health.
 It is a paid exploitation done by the company y towards the small children.
 The company is also violating the law and order mentioned in the Contract ad
community Act.
 She said that it is absolutely on the wrong part of the company to let small children
employ in such shifts.
 It creates a bad impression on the customer’s mind after this issue came up on the
news.

Continued
 She said that the company should be charged more penalties that what it is has asked
for.
 The company has charges of violating laws and exploiting children .
 Meredith Hammat says that, a company so big and established should be charged
more.
 It s not just about the violation but also about the fall of integrity and goodwill in the
market.
 So far what has been charged is very minimal just like a raindrop from the sky for so
big company as KFC is.

Business Decisions
 KFC as a company, regret for the current pathetic situation which is high on their
nerves.
 It regrets for the gaps and faults in their software system that permits the routine wise
breaches which has occurred and took this shape in the media.
 The company has realized how drastic situation it has occurred and have fallen into.
 It has understood the high time and has decided to change the rostering software of
the company to prepare new working shifts.
 This time they have also planned to train their people properly as per their job role and
organize them.
 They have made it sure that they would not repeat as ruthless as this, never in their
lifetime.

Suggestions
 The company is suggested to change some of its policies and business strategies.
 The company should change the shifts for the employees keeping in mind the best
amount of productivity.
 The company is supposed to change the policy of recruiting employees so young at
age.
 The company should Start paying extra for extra hours of job.
 The company should go for recruiting more employees in a single outlet as it has
millions of tonnes of production annually.

Continued…
 The company should go for recruiting employees who are experienced in the same
field and would understand the job role as assigned.
 The company needs to allocate tasks by segregating the department wise employees.
 The company is suggested to implement few more new machineries and robotics to
make work easier and simpler.
 The company should make the employees work in long shifts with short breaks.
 The company is suggested to go for rewarding the employees.

Objectives
 The company is suggested not to recruit children for their work who are below 16 as it
is exploitation in the eyes of law.
 The company is suggested to reduce the workload by recruiting more employees to
work.
 The company is recommended to use the policy of two days leave in a week,
 The company can also go for good refreshment packages in between the work
schedules not to make that work boring for long hours.
 The company is suggested to inbuilt music systems and television facilities in the
workshop for mere entertainment of the employees.

References
 Anand, D., & Yeung, D. (2018). Employee development and its effect on employee performance at KFC
Restaurant Brands.
 Lu, Y. (2016). Social media crisis communication strategies—a case study of KFC in China. University of South
Dakota.
 Omer, S. K. (2018). SWOT analysis: The tool of organizations stability (KFC) as a case study. Journal of Process
Management. New Technologies, 6(4), 27-34.
 Anuar, A. F., Halim, K. N. A., & Canda, R. Classification and Prediction on School Children about their Food Intake
Attitude towards Food and Beverage Advertising on Television: KFC as a Case Study.
 Rahman, M., Hossain, I., Mitu, F., Mustafi, M. A. A., & Miah, M. An Examination of the Effects of Customer
Expectation, Perceived Quality, and Customer Satisfaction on Customer Loyalty: A Case Study on KFC
Restaurant. International Journal of Engineering and Applied Sciences, 4(12).
 ShindyRamadiyaniPradita, Y. Effect of Brand Image and Perceived Price Towards Purchase Decision in Kentucky
Fried Chicken (KFC).

References
 Firoz, N. M., & Abinakad, M. (2016). Food Safety and Ethics in Foreign Markets. Conflict Resolution
& Negotiation Journal, 2016(4).
 Talwar, J. (2018). Fast food, fast track: Immigrants, big business, and the American Dream.
Routledge.
 Zhu, L., Anagondahalli, D., & Zhang, A. (2017). Social media and culture in crisis communication:
McDonald’s and KFC crises management in China. Public Relations Review, 43(3), 487-492.
 House, M. BKT partners with the KFC Big Bash League.
 Lynch, M., Brooks-Cleator, L. A., Giles, A. R., & Rumford, M. H. (2019). “RIP KFC”: Public
Perceptions of a Fast-Food Restaurant Closure. Ecology of food and nutrition, 58(2), 120-141.
 Murray, A. (2018). A faster taste: Red rooster and the architecture of Australian fast food. Historic
Environment, 30(2), 100.