Explore: Real-World Examples of Bad Business Ethics—-McDonald’s

Business ethics are significant to all companies. It relates to not only the benefits and the reputation of one company, but the benefit of consumers. Whether a company can grow up and become flourishing or not sometimes is determined by business ethics. A presentative of bad business ethics in real-world is McDonald’s.

1. In 1972, Ray Kroc, the company’s founder made a rare donation of $250,000 to Nixon’s reelection campaign and in return got a favorable legislation that allowed companies such as McDonald’s to pay teenage employees 20 percent less than federal minimum wages.

—- the basic rights of teenage employees cannot be guaranteed.

2. McDonald’s also doesn’t allow employees to unionize, and in one instance where workers at St. Hubert Quebec did form a union, the company closed down the unit promptly.

—- employees’ right of defending their benefits and claims lost.

3. Activists of London Greenpeace alleged that McDonald’s promoted Third World poverty, sold unhealthy food, exploited workers and children, tortured animals, and destroyed the Amazon rain forest.

—- lots of unethical behavior lead McDonald’s to be sued.

 

Original Text:

Reputation is a company’s biggest asset and bad business ethics invariably result in loss of reputation and credibility. Yet many large corporate also find themselves caught red handed indulging in shady conduct. Read on for some real life examples of bad business ethics.

  • McDonald’s

    Examples of Bad Business EthicsVery often, a company’s relationship with its stakeholders defines its ethical values. McDonald’s, despite its global success, remains the target of a vitriolic public backlash owing to what many perceive as bad business ethics in its relationships with employees and other stakeholders.

    This bad business ethics example by McDonald’s is what is known as the “McDonald’s Legislation” in popular parlance. In 1972, Ray Kroc, the company’s founder made a rare donation of $250,000 to Nixon’s reelection campaign and in return got a favorable legislation that allowed companies such as McDonald’s to pay teenage employees 20 percent less than federal minimum wages. Most observers consider this a typical case of corporate influence on lawmakers to enact legislation that serve their selfish ends and harm society.

    McDonald’s also doesn’t allow employees to unionize, and in one instance where workers at St. Hubert Quebec did form a union, the company closed down the unit promptly.

    The McLibel case ranks as McDonald’s most disastrous cases of bad business ethics and spawned tons of negative publicity. Between 1986 and 1990, activists of London Greenpeace distributed pamphlets with the title “What’s Wrong with McDonald’s? Everything They Don’t Want You to Know” and the wordings “McDollars, McGreedy, McCancer, McMurder, McProfits, McGarbage,” alleging that McDonald’s promoted Third World poverty, sold unhealthy food, exploited workers and children, tortured animals, and destroyed the Amazon rain forest. McDonald’s sued the group for libel. The court, however, held McDonald’s guilty of exploiting children through advertising tactics, serving dangerously unhealthy food, paying workers low wages, indulging in union busting activities worldwide, and ignoring animal cruelty perpetrated by its suppliers.

     

    • Reference

      MSN. “The Bad Boys of Business.” http://articles.moneycentral.msn.com/Investing/Extra/the-bad-boys-of-business.aspx?slide-number=1. Retrieved April 22, 2011.

       

      from http://www.brighthub.com/office/entrepreneurs/articles/115557.aspx

2 thoughts on “Explore: Real-World Examples of Bad Business Ethics—-McDonald’s

  1. Well, yes I personally think that McDonald’s has violated their business ethics as they:
    1) Violate or disrespect the rights of employees. This is clearly seen when they do not allow their workers to unionize and at the same time they underpay their teenage workers.
    2) Serving dangerously unhealthy food, considering almost all their food is unhealthy, is also unethical as they try to project a positive image in the eye of society by showing that they are helping to reduce poverty, but in real fact is they are worsening the situation. In this case, they are being selfish and are not willingly giving back to the society.

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