Management Ethics and KFC's Dilemma: A Detailed Report

This report delves into the ethical challenges faced by Kentucky Fried Chicken (KFC) concerning its use of trans fatty acids and Sudan Red in its products. It explores the application of management theories, including scientific, bureaucratic, and administrative theories, to understand the dilemma. The report examines how KFC's decisions to cut costs and expand internationally have led to compromised product quality, affecting consumer health and brand image. It analyzes the impact of these ethical breaches on the company's sales, customer loyalty, and potential international expansion. The report also discusses KFC's responses, such as apologies and the introduction of healthier product lines, while highlighting the importance of ethical management, leadership, and the need for a well-motivated workforce to ensure the company's long-term success. The report emphasizes the importance of business ethics and the need for companies to prioritize consumer health and product quality.

Running head: MANAGEMENT THEORY AND PRACTICE
MANAGEMENT THEORY AND PRACTICE
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1MANAGEMENT THEORY AND PRACTICE
The functioning of the organizations is based on the resourcefulness of the same in the
market. In order to make the organizational progress in the situations, the companies are required
to follow a set of ethics. The report is aimed at holding a discussion on the ethical dilemma faced
by the Kentucky’s Fried Chicken (KFC), which is based on the usage of the oil containing Tran's
fatty acids. The Tran’s fatty acids affect the heart functioning through the rise in the levels of
cholesterol (Scott, 2013). The company uses the oil in order to cut off costs, which are required
for the bulk production. The main objectives of undertaking the report is based on the thorough
understanding of the theoretical concepts of management ethics and the practical it helps in the
better understanding of the dilemma that is being faced by the concerned organization. The
report also enumerates certain recommendations for bringing in improvements in the situation of
the organizations in the market.
The application of the theories have helped in the understanding of the dilemma that is
being faced by the organizational the market. The dilemma that is being faced by the
organization is based on the requirement of the company to expand in the international markets.
However, the quality of the products is compromised through the usage of cheap oil for frying
the deliverables (Ulrich & Probst, 2012). The company must consider the proper understanding
of the aspects of the health issues that the people might face through the intake of the harmful
oils. The consideration of the human health factors is important for the company to undertake an
ethical enterprise (Vaccaro et al, 2012). It helps in the maintenance of the organizational systems
and thereby brings in improvements in the situation of the business. It has helped in ensuring the
various aspects of the change that is being undertaken by the organizations in the market.
Management and leadership play a major role in maintaining the ethics of the organization.
Effective management of the organization helps in determining the aspects of the development of

2MANAGEMENT THEORY AND PRACTICE
the organization in the market. The aspects of the change that is being undertaken by the
organization is based on the scientific theory of management which includes invariably the
systematic functioning of the workforce for bringing in the different modifications in the
structure and the situation of the organization in the market (Seuring & Gold, 2013). The most
important aspects of the theory are based on the smooth functioning of the workforce and
thereby the progress of the organization. The theory overlooks the importance of the quality of
the work and generally focuses more on maximizing the quantity of the products.
Alternatively, the bureaucratic theory helps in the understanding of the specialization of
the departments in the organization. It aims at dividing the departments based on the expertise of
the members in order to bring in changes in the productivity of the organization. The most
important factor that is being supported through the utilization of the theory is based on the
resourcefulness of the organization in maintaining a line of skilled workforce in the structure
(Reason, 2016). It is aimed at bringing in changes in the situation of the organization in the
market. The administrative theory of management is also being undertaken by the management
of the organization in order to bring in an expansion in the productivity of the organization in the
market. It also helps in increasing the efficiency of the functioning of the organization in the
market. The involvement of the theoretical concepts of management has helped in the
understanding of the frivolous aspects that helps in the determination of the changes that are
required to be undertaken by the management of the organization.
In this context, the company has taken steps to bring in improvements in the productivity
through the usage of the cheap oil for frying the chicken. On the other hand, the usage of Sudan
Red for their recipe New Orleans Roasted Wing was also found to be harmful for the health of its
consumers (Quick et al. 2013). The company faces the ethical based on the type of management

3MANAGEMENT THEORY AND PRACTICE
and the objective of the organization. The functioning of the organization is determined through
the management of the organization in the market (Maag, 2016). However, the negligence in the
quality of the delivered foods has brought disgrace for the company in the market. The company
is affected through the press releases and the media report and the same resulted to a negative
impact on the brand image (Harper, 2015). The company’s attempts of compromising with the
health of the consumers have created a havoc impact on the market. On the other hand, the
company’s requirement of expanding the business round the world is being incapacitated through
the probable threat of being banned in several nations of the world (Giacalone & Rosenfeld,
2013). Quality is a major issue that must be controlled and adhered by the organization for the
better functioning and the sustenance of the organization in the market. The sales of the company
have fallen considerably with the fall in the quality of the products (Starik & Kanashiro, 2013).
However, the major issues that are being faced by the organization are based on loss of the loyal
customers. The issues in the quality of the foods that are delivered by the company are based on
the requirements of the company to make its progress in the markets. According to Venkatesh,
Thong and Xu (2012), the ethics of the organization is based on the type of management that is
being undertaken by the organization (Easterby-Smith, Thorpe & Jackson, 2012). The ethics
are purely related to the objectives of eth organization. The growth of the organization in the
market is based on the ethics that are being employed (Weick, 2012). Therefore, the basic
aspects of the theories helps in determining the changes that are being undertaken by the
management of the organization (Birolini, 2012).
The company has apologized to the customers and the public as they failed to monitor
over the quality of the foods through the media. It has helped the organization in introducing
their new range of healthy products in the market (Hammer, 2015). The usage of the oil

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containing the Tran’s fatty acids or the Sudan Red is being banned by the organization after the
breakout of the news in the media (Osborne, Radnor & Nasi, 2013). The proper management
of the organization would have helped the organization in making a prosper in the market. It
would have helped the organization in maintaining the quality of the food that is being delivered
by the organization in the markets.
The theories that are being enumerated in the previous section of the report are based on
the proper undertaking of the management functions of the organization. It helps in determining
the different aspects of the change in the quality management of the products. Rice, (2013)
believed the company follows the Scientific theory of management which helps in determining
the expansion of the activities undertaken by the organization. It helps in undertaking steps for
the proper development of the organization in the market. However, it is totally focused on
enhancing the productivity of the organization in the markets. The quality of the products is
negligible according to this theory, as the productivity is the major purpose of the management
following this theory. Alexander, (2013) believed that he proper undertaking of the
management of the organization helps in determining the aspects of the change in the situation of
the organization in the markets. The evaluation of the scientific theory of management has
helped in the understanding of the different aspects of the development of the organization based
on the enhancement of the productivity of the organization. The understanding of the different
aspects of the change that is being undertaken by the organization is based on the effectiveness
of the functioning of the organization in order to bring in changes in the productivity of the
organization in the market (Hayes, 2014). The practices that are being undertaken by the
organization are based on the understanding of the steps that are being undertaken by the
management of the organization for enhancing the functioning of the organization in the market.

5MANAGEMENT THEORY AND PRACTICE
The decisions that are being undertaken by the organization are not based on the welfare and
health of the people working for the organization. The ethics seem to collide with the objectives
of growth and expansion of the organization.
According to Shafritz, Ott and Jang (2015), the Bureaucratic theory of management
helps in determining the aspects of the quality and the productivity of the organization. It is
specifically based on the Virtue ethics of the workforce. However, the major aspects of the
change that is being undertaken by the organizations for bringing in modifications in its systems
have helped in progress made by the same. The theory has helped in the understanding of the
different aspects of the improvements in the structure of the organization in the markets.
Alternatively, the Administrative theory has helped in determining the different aspects of the
production and the enhancement of the situation of the organization in the market. Dalkir and
Beaulieu (2017) believed that the proper management of the organization is an important step
that is required to be undertaken in order to bring in changes in the structure of the organization
in the markets. The proper management of the organization relating to the quality of the products
and the services and the efficient functioning of the workforce helps in determining the progress
of the company (Van Der Aalst, La Rosa & Santoro, 2016). On the other hand, the competitive
environment that is being created by the concerned company in the workplace has affected the
working environments (Brigham & Ehrhardt, 2013). The major aspects of the change that the
company aims at undertaking helps in determining the different aspects of the management
related issues faced by the organization. The consequences that are being faced by the
organization are based on the dependability of the same on the ethical decisions and the well
motivated and ethical workforce. The ethics of the smooth functioning workforce helps the
organization to make its progress in the market (Hill, Jones & Schilling, 2014).

6MANAGEMENT THEORY AND PRACTICE
The company must take steps in order to bring in changes in the structure and the
functions of the organization in the market. On the other hand, the promotional activities that
might be undertaken by the management body of the organization have helped in the proper
understanding of the situation of the business in the market. The involvement of the media to
promote the healthy products manufactured by the company has helped in resolving the issues
that are faced by the organization in the market. The major aspect of the change that is being
undertaken by the organization is to promote the new range of healthy food deliverables. It helps
in attracting the attention of the customers. On the other hand, the proper management of the
organization helps in the developmental process of the organization in the market. It helps in the
retention of the goodwill in the market. The proper management of the organization has helped
in undertaking steps for bringing in improvements in the structure and the systems of the
organization. The proper functioning of the organization has helped in undertaking steps for the
better functioning of the organization.
Maintenance of business ethics in the operation holds or increases the value of business.
However, in every year, even the large businesses have been seen to be involved in ethical
issues. Consequently, the number of debates, dilemmas centering business ethics, which attracts
a significant amount of attention from different quarters, are increasing day by day. On the other
side, consumer and regulatory bodies of the market or nations could also ask for the justification
of unethical business actions. Moreover, hiding an unethical business action can never be a
solution, as the media tend to keep a special attention on the corporate sector as well as the
possible malpractices. In the case of KFC , consumption of oil that is unhealthy can certainly be
considered as an ethical dilemma. KFC is a large brand with wide global market; certainly, the
brand has effective market reputation. In addition, customers have high expectation from such

7MANAGEMENT THEORY AND PRACTICE
brands. Thus, unethical action- such as the use of unhealthy oil certainly creates a significant
business issues. The intensity of such problem could tarnish the brand image of KFC. As
discussed above, in order to avoid such issue in the operation, the firm needs to pay special
attention to the quality of products.
As discussed above in the report, the criteria of manufacturing quality products should
include the element of ethics. Bureaucratic theory discussed above helps to lean how a firm
could enhance its quality of products and services meeting customers’ needs and maintaining all
ethical grounds. Likewise, the use of scientific theory helps to learn how a firm can keep the
balance between the quantity and quality of products without harming or affecting the ethical
grounds. Moreover, besides the quality and quantity, the organization also needs to pay attention
to the facts how an organization can keep its customers safe from the possible damages.
Therefore, at the time of applying strategies, the organizations also need to think of the principles
mentioned by regulatory bodies. Thus, the administrative theory discussed above in the report
provides the idea how a business operates its functions successfully without harming its key
stakeholders’ interest. In order to avoid such ethical issue and keep the brand safe from losing its
public image, KFC has been proposed to use social media channels, where it can promote its
healthy products and services to a platform of consumers. Digital media channels help to
promote the products in a faster way that eradicate or make consumers ignore the past event, as
in digital media, the consumers only consider the latest actions.

8MANAGEMENT THEORY AND PRACTICE
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