Kfc Case Study

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KFC in India Case Study Assignment (Ethical Issue)

Abstract

The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in midst of controversies since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavor enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA and other animal rights organizations, KFC planned a massive expansion program in India.

(see http://www.icmr.icfai.org/casestudies/catalogue/Business%20Ethics/BECG044.htm)

Objectives

Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country.

Appreciate the need for protecting animal rights in developed and developing countries like India.

Understand the importance of ethics in doing business.

Examine the reasons for protests of PETA

Identify solutions for KFC's problems in India.

Key Terms

KFC, Business Ethics, International Business, People for Ethical Treatment of Animals (PETA), Food Adulteration, Selling Junk Food, Cruelty against Animals, Animal Welfare Legislation, KFC's Poultry Welfare Guidelines.

"Each bird whom KFC puts into a box or a bucket had a miserable life and a frightening death. People would be shocked to see our footage of a KFC supplier's employee who walks through a barn, carelessly lighting lamps and letting flames fall…...

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