KFC's Corporate Social Responsibility Analysis: Recommendations

This report offers a comprehensive analysis of KFC's corporate social responsibility (CSR), examining its economic, social, and environmental practices in Australia and Malaysia. The report delves into KFC's economic responsibilities, including profit generation and stakeholder value, and evaluates its social decisions, such as employee welfare and community involvement through initiatives like the World Hunger Relief. Furthermore, it assesses KFC's environmental decisions, focusing on green building practices, sustainable packaging, and recycling efforts. The analysis compares and contrasts KFC’s operations in its home country (Australia) and host country (Malaysia) considering the cultural differences. The report concludes with recommendations for improvement, suggesting the use of biodegradable materials, collaborations with child development programs, and healthier food options. Overall, the report highlights KFC's efforts to integrate CSR into its business model and suggests strategies for continuous enhancement.

Running head: ANALYSIS OF THE CSR OF KFC
Analysis of the CSR of KFC
Name of the Student:
Name of the University:
Author Note:

1ANALYSIS OF THE CSR OF KFC
Executive Summary:
The aim of this report is to analyse the corporate social responsibility of KFC and
how the leading fast food restaurant involves its economic, social and Environmental
responsibilities into practise. The report also aims to recommend other alternatives for the
firm.

2ANALYSIS OF THE CSR OF KFC
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Economic Responsibilities:........................................................................................................3
Social Decisions:........................................................................................................................4
Environmental Decisions:..........................................................................................................4
Recommendations:.....................................................................................................................5
Conclusions:...............................................................................................................................5
References:.................................................................................................................................7

3ANALYSIS OF THE CSR OF KFC
Introduction:
Kentucky Fried Chicken or KFC is a fast food restaurant which has its headquarters in
Louisville, Kentucky in the United States. Being one of the greatest chain of fast food
restaurants, it serves more than 109 countries. KFC applies the concept of corporate social
responsibility into practise, which is a business strategy that allows the firm to behave in the
most responsible manner (Crane, Matten and Spence, 2013). This helps in the positive
impacts of the company and minimizes the negative impacts. The structure of the paper deals
with the Economic responsibilities of the leading firm, it social and environmental decisions
as well as the other alternatives and recommendations for the further benefit of the company.
Discussion:
Culture of the home country- Australia and host country Malaysia:
Australia’s national culture is primarily Western Culture and is extremely diverse and
the most significant components of the multicultural milieu is the Australia’s First People,
who represent the oldest culture in the world. Being such multi-culturally vibrant, Australia
does not share any one particular cohesive cuisine. Dominant language since the colonisation
had always been English. Before Colonisation, the people of Australia were sustained by a
diverse range of flora and fauna. Australian chefs are renowned worldwide for their blending
cuisine which had been the combination of the European Cooking tradition along with the
Asian flavours. KFC Australia stands alone as the leading fast food chain, with its stores
going back to the historical roots of the nation, and reflecting the blended cuisine of
Australia. It has also adapted itself according to the changes in the tastes of the people of the
country
Malaysia is a culturally rich nation with different cultures residing together. The
Persian, Arabic and the British cultures heavily influenced the culture of Malaysia. Being a

4ANALYSIS OF THE CSR OF KFC
multi-cultural society, there is the existence of different ethnic religions and customs and the
ways of lives. Its traditional art and music fate back to the Malay sultanates. And its taste of
cuisine also travels back to the ethnic lines. Even the Malaysian cuisine is influenced by the
cuisine of the China, India, Thai as well as Japan. Even though the food originates from the
different cultures, they inherit their own identity and thus the restaurants of Malaysia take
care of the demands of every other people. Their food is served all at once and not according
to the courses, which make their culture extremely unique.KFC in Malaysia involves the
tastes of all the tastes of the cultures that have influenced the nation since history. Being a
leading food organisation in the Asia-Pacific region, it takes care of the cultural combinations
and incorporates them into teh taste thus attracting more customers to their outlets.
Economic Responsibilities of KFC:
The economic responsibilities of KFC are essential for the firm since the main
purpose of the firm is to earn maximum amount of profit for the stakeholders. The main role
of the company is to produce the products that the consumers require as well as make an
appropriate profit for the business. For this reasons, the economic responsibilities of the firm
requires that the firm performs in a consistent manner where the employees and the managers
of the restaurant involve themselves in voluntary and charitable activities and is committed to
being as profitable as possible. According to Lawless (2013),it is important for the firm to
perform in the manner where there exists per share for the employees. On an overall basis,
KFC performs satisfactorily with the economic responsibilities and by increasing the
percentage of profit consecutively in the three years. The better service of the customers of
KFC do not depend on the increase of the selling price of the products or the increase of the
profit of the company. However the price policy of the firm does increase its profits and also
the reduction in the general and the administrative expenses of the company generates profit
with no capital expenditures.

5ANALYSIS OF THE CSR OF KFC
Social Decisions:
According to Schrempf (2014), KFC Australia along with providing an industry for
career, also provides opportunities for the managers and the employees to learn life skills,
time management skills, strong work ethics, as well as provides access to proper training and
development. It really caters to the wellness of the employees which ensures a healthy life by
increasing their proper work life balance. It also has begun an initiative of free access for the
cardiovascular and diabetes patients. KFC being the largest food chain restaurant, has a
positive support for the World Hunger Relief. It has raised more than $5.4 million for the
World Food Programme (Morgan et.al., 2016). The customers of KFC have the opportunity
to make donation to the World Hunger Relief through coin donation boxers and wristbands or
pens and gift cards when they visit the restaurant. It has also employed more than 40 percent
of the youth of the nation, making it the largest employer in the Whitelion Employment
Program. In the year 2008, KFC has also been made the founding member of the Australian
Quick Service Restaurant Industry Initiative for Responsible Advertising and Marketing to
Children (Hingeyet.al., 2013).
Environmental Decisions:
As stated by Moscato (2017), KFC in all its activities and decisions incorporate
effective measures that help to protect the environment as a whole. This eventually benefits
its customers, its associates as well as franchises. The major areas that the company
undertakes measures for are the Green Eco-friendly Buildings (Rijal, 2015). These buildings
concentrate on the conservation of energy, the water harvesting system, as well as water
conservation and the maintenance of the quality. It also looks into the energy consumption,
including effective technological measures for the lightning, air conditioning as well as the
refrigerating. According to Alfagi, Purnaweni and Setiani, (2015), KFC also aims at
sustainable packaging of its food products. Its main goal is to purchase paper-based

6ANALYSIS OF THE CSR OF KFC
packaging with fibre from the properly managed recycled sources. It also recycles its cooking
oil and also has an effective investigation as to how redundant equipment and metals can be
recycled. It has also participated in the nationwide recycling initiative which says “Do the
Right Thing, Use the Right Bin”. KFC Australia also recycles the cardboards and bottles and
cands in majority of the franchisee stores.
Recommendations:
Apart from the Sustainability measures, KFC Australia can work better if they incorporate
few different alternatives apart from the existing policies and programs.
 It can start the use of biodegradable cans and plastics and the cups. Along with the
recycling of products, there could be use of these kinds of eco-friendly items.
 Collaborations can be made with different schemes like child development or
education plans, where KFC would donate a certain percentage of its profit for the
development of the underprivileged and the money would be used for the noble cause.
 KFC meals along with the fast food and the beverages could also incorporate hygienic
food, which would be filled with lesser calories and low fat. It could also be made
healthier for the children so that the parents get dietary choices for their children.
Conclusions:
Thus from the above report it can be concluded that for any business firm to work in a
proper manner, it should incorporate the Corporate Social Responsibility and KFC being one
of the largest quick service restaurant systems, operate to improve the lives of the employees,
the stakeholders as well as the customers. With the economic social and the environmental
initiatives and responsibilities, KFC not only has proved to be one of the most dynamic
restaurants but also incorporates a development strategy to continuously improve themselves.

7ANALYSIS OF THE CSR OF KFC
References:
Alfagi, A., Purnaweni, H. and Setiani, O., 2015. Waste Management in KFC and Pizza Hut
Case Study in Semarang, Indonesia. Science Journal of Environmental Engineering
Research, 2015.
Crane, A., Matten, D. and Spence, L.J., 2013. Corporate social responsibility in a global
context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social Responsibility:
Readings and Cases in a Global Context, 2, pp.3-26.
Hingley, M., Lindgreen, A., Reast, J., Assiouras, I., Ozgen, O. and Skourtis, G., 2013. The
impact of corporate social responsibility in food industry in product‐harm crises. British Food
Journal.
Lawless, J., 2013. Kentucky Fried Transparency.
Morgan, C.J., Widmar, N.O., Yeager, E.A., Downey, W.S. and Croney, C.C., 2016.
Perceptions of social responsibility of prominent fast food restaurants. Modern
Economy, 7(06), p.704.
Moscato, D., 2017. Corporate Social Responsibility Committing to Social and Environmental
Impact. The Handbook of Financial Communication and Investor Relations, p.221.
Rijal, R., 2015. Environmental determinants of multinational companies in Nepal: A case of
KFC and pizza hut (Master's thesis, UniversitetetiNordland).
Schrempf, J., 2014. A social connection approach to corporate responsibility: The case of the
fast-food industry and obesity. Business & Society, 53(2), pp.300-332.