According to an article published on 27th august 2015 McDonald’s Corp and Tyson Foods both severed ties on Thursday with a Tennessee farm where workers were seen stabbing, clubbing and stomping on chickens in an undercover video shot by animal rights activists.
Tyson supplies chicken to McDonald’s MCD.N, the world’s biggest fast-food chain, for its McNuggets. “Animal well-being is a priority at our company and we will not tolerate the unacceptable animal treatment shown in this video,” Tyson spokesman Worth Sparkman said.
Tyson is an outsourced supplier for mcdonalds chicken, and most of their chicken is supplied from tyson. Animal right activists unveiled what actually goes on inside tyson and subjected it to animal cruelty. This looks really bad on mcdonalds part and would definatly result in a decrease in sales.
McDonald’s said in a statement it supported Tyson’s decision and “we find the behavior depicted in this video to be completely unacceptable.”
In the statement above mcdonalds tries to justify itself and its malpractices. This unethical behaviour will cause a decrease in sales of their chicken products, decreased customer loyalty and more over the media attention given to this will act as negative marketing.
Based on recent news, mcdonalds took this pretty seriously and ended the contract with tyson foods. This hopefully gets mcdonalds back on track and increase sales as the sales have been in a slump
Resources:
http://ca.reuters.com/article/businessNews/idCAKCN0QW2K220150828?pageNumber=2&virtualBrandChannel=0
http://money.cnn.com/2015/08/27/news/companies/mcdonalds-tyson-foods-animal-abuse/
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