Case Study: McDonald's Coffee Spill and Corporate Responsibility

This case study analyzes the McDonald's coffee spill incident, focusing on the events surrounding Stella Liebeck's injury from a hot coffee purchase at McDonald's. The study explores the legal and ethical implications of the incident, including the extent of the burns, the initial response, and the subsequent lawsuit. It examines the role of corporate social responsibility, the ethical decision-making processes involved, and the impact of the case on McDonald's and the broader business community. The analysis considers the temperature of the coffee, the company's awareness of potential hazards, and the legal arguments presented. The study further investigates the outcome of the case and its lasting effects on product liability, consumer safety, and business practices. The case study provides a detailed overview of the incident, the legal proceedings, and the ethical considerations involved in the McDonald's coffee spill.

Running head: CASE STUDY ON COFFEE SPILL
Case Study on Coffee Spill
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1CASE STUDY ON COFFEE SPILL
Executive Summary
The primary focus of the paper is to analyse a case study named – McDonald’s – The Coffee
Spill Heard ‘Round the World’. The research tends to examine the true-life event of a
customer named Stella Liebeck, a 79-year-old lady, who visited McDonald on the date of 27th
February 1992. It was contemplated that Stella purchased a McBreakfast for herself and her
grandson Chris. In this connection the study analyses the complete occurrence of the incident
that happened later to the purchase made. The case study is to study into depth to understand
the criticality of the situation, the way it was handled and the consequences of the same.
Introduction
Based on the concerned case study it was analysed that the incident that had occurred
had been a matter of significant concern and was spread worldwide. The issue had dominated
the highlights of news for over 20 years. The incident that had taken place was recorded as
the third-degree burn caused to the old lady Stella while trying to open the lid of the coffee
box that she had purchased as a part of her breakfast from McDonald's. The lady reported
receiving a third-degree burn with 6% of her body being destroyed by the burnt. In the
context of the injury received by the old lady, she wrote a letter to McDonald about reducing
the temperature of the coffee. It was also examined that, the victim did not wish to sue the
company, although $800 compensation offered by McDonald's was reported. At present, this
particular issue is still debated when cases similar to this takes place. Further, the study
critically analyses the application of the corporate and social responsibility of the company.
Based on the critical situation and the need to solve the problem the ethical decisions in order
to fulfil the corporate social responsibility is therefore illustrated with the help of the case
study.