01. Business and Ethics
01. Business and Ethics
McDonald’s Happy-Meal
The picture is from the article written by Gael O’Brien.
http://business-ethics.com/2011/05/31/1441-marketing-to-children-accepting-responsibility/
In the article, McDonald’s Happy Meals with toys raises ethical concerns due to increased children’s obesity rate. We should, however, admit that individuals have dissimilar ethical standards.
In Adam Smith’s perspective, every individual pursues his own benefit rather than a well-being of society. McDonald’s pursue of its own benefit is not necessarily justified, yet it may not be responsible for adjusting their services to decrease the obesity rate. The consumers with rights to purchase other products are also responsible for their consumption.
Marketing to the children who are more vulnerable to advertisements, however, may also be unethical as the firm is responsible for selecting its appropriate target consumers. Due to different perspectives, it is difficult to determine if it is ethical.
Nonetheless, McDonald’s is required to consider adjusting their marketing strategies. Suggested by Freeman’s Stakeholder Theory, the executives should keep the stakeholders’ interests in the “same direction” in order to be successful. Despite the increased profit, the customers’ interest, which is the children’s health, is incompatible with other stakeholders’. The customers’ ethical views or interests will significantly affect the sales of food and the success of McDonald’s; perhaps, it is the reason why ethical standards of communities are valued.
Ha Neul (Hannah) Chung
Word Count: 199 words
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References:
1) Principles of Microeconomics, Fifth Canadian Edition by N.Gregory Mankiw, Ronald D. Kneebone, and Kenneth J. McKenzie (pg. 12: Adam Smith and the Invisible Hand)
2) “Marketing to Children: Accepting Responsibility” by Gael O’Brien (http://business-ethics.com/2011/05/31/1441-marketing-to-children-accepting-responsibility/)
3) What is Stakeholder Theory? – R. Edward Freeman (https://connect.ubc.ca/webapps/portal/frameset.jsp?tab_group=courses&url=%2Fwebapps%2Fblackboard%2Fcontent%2FcontentWrapper.jsp%3Fcontent_id%3D_1558996_1%26displayName%3DLinked%2BFile%26course_id%3D_25036_1%26navItem%3Dcontent%26attachment%3Dtrue%26href%3Dhttps%253A%252F%252Fconnect.ubc.ca%252Fwebapps%252Fblackboard%252Fcontent%252FlistContentEditable.jsp%253Fcontent_id%253D_1558999_1%2526course_id%253D_25036_1)
4) Picture is from (http://business-ethics.com/2011/05/31/1441-marketing-to-children-accepting-responsibility/)
You can also click the bolded words to be directly connected to the link.
