Analysis Of Ethical Dilemma Faced By KFC For Using Harmful Oil

Theoretical Concepts of Management Ethics and Its Practical Implementation

Use an organisation that is or has been in the news during the past two years (work-related learning) and identify an ethical dilemma faced by that organisation as an example.

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The functioning of the organizations is based on the resourcefulness of the same in the market. In order to make the organizational progress in the situations, the companies are required to follow a set of ethics. The report is aimed at holding a discussion on the ethical dilemma faced by the Kentucky’s Fried Chicken (KFC), which is based on the usage of the oil containing Tran’s fatty acids. The Tran’s fatty acids affect the heart functioning through the rise in the levels of cholesterol (Scott,  2013). The company uses the oil in order to cut off costs, which are required for the bulk production. The main objectives of undertaking the report is based on the thorough understanding of the theoretical concepts of management ethics and the practical it helps in the better understanding of the dilemma that is being faced by the concerned organization. The report also enumerates certain recommendations for bringing in improvements in the situation of the organizations in the market.

The application of the theories have helped in the understanding of the dilemma that is being faced by the organizational the market. The dilemma that is being faced by the organization is based on the requirement of the company to expand in the international markets. However, the quality of the products is compromised through the usage of cheap oil for frying the deliverables (Ulrich  & Probst,  2012). The company must consider the proper understanding of the aspects of the health issues that the people might face through the intake of the harmful oils. The consideration of the human health factors is important for the company to undertake an ethical enterprise (Vaccaro et al, 2012). It helps in the maintenance of the organizational systems and thereby brings in improvements in the situation of the business. It has helped in ensuring the various aspects of the change that is being undertaken by the organizations in the market. Management and leadership play a major role in maintaining the ethics of the organization. Effective management of the organization helps in determining the aspects of the development of the organization in the market. The aspects of the change that is being undertaken by the organization is based on the scientific theory of management which includes invariably the systematic functioning of the workforce for bringing in the different modifications in the structure and the situation of the organization in the market (Seuring  & Gold,  2013). The most important aspects of the theory are based on the smooth functioning of the workforce and thereby the progress of the organization. The theory overlooks the importance of the quality of the work and generally focuses more on maximizing the quantity of the products.

Application of Scientific Theory of Management and Bureaucratic Theory

Alternatively, the bureaucratic theory helps in the understanding of the specialization of the departments in the organization. It aims at dividing the departments based on the expertise of the members in order to bring in changes in the productivity of the organization. The most important factor that is being supported through the utilization of the theory is based on the resourcefulness of the organization in maintaining a line of skilled workforce in the structure (Reason,  2016). It is aimed at bringing in changes in the situation of the organization in the market. The administrative theory of management is also being undertaken by the management of the organization in order to bring in an expansion in the productivity of the organization in the market. It also helps in increasing the efficiency of the functioning of the organization in the market. The involvement of the theoretical concepts of management has helped in the understanding of the frivolous aspects that helps in the determination of the changes that are required to be undertaken by the management of the organization.

In this context, the company has taken steps to bring in improvements in the productivity through the usage of the cheap oil for frying the chicken. On the other hand, the usage of Sudan Red for their recipe New Orleans Roasted Wing was also found to be harmful for the health of its consumers (Quick et al. 2013). The company faces the ethical based on the type of management and the objective of the organization. The functioning of the organization is determined through the management of the organization in the market (Maag, 2016). However, the negligence in the quality of the delivered foods has brought disgrace for the company in the market. The company is affected through the press releases and the media report and the same resulted to a negative impact on the brand image (Harper,  2015). The company’s attempts of compromising with the health of the consumers have created a havoc impact on the market. On the other hand, the company’s requirement of expanding the business round the world is being incapacitated through the probable threat of being banned in several nations of the world (Giacalone  & Rosenfeld,  2013). Quality is a major issue that must be controlled and adhered by the organization for the better functioning and the sustenance of the organization in the market. The sales of the company have fallen considerably with the fall in the quality of the products (Starik  & Kanashiro, 2013). However, the major issues that are being faced by the organization are based on loss of the loyal customers. The issues in the quality of the foods that are delivered by the company are based on the requirements of the company to make its progress in the markets. According to Venkatesh, Thong  and Xu  (2012), the ethics of the organization is based on the type of management that is being undertaken by the organization (Easterby-Smith,   Thorpe  & Jackson,  2012). The ethics are purely related to the objectives of eth organization. The growth of the organization in the market is based on the ethics that are being employed (Weick,  2012). Therefore, the basic aspects of the theories helps in determining the changes that are being undertaken by the management of the organization (Birolini,  2012).

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Administrative Theory of Management

The company has apologized to the customers and the public as they failed to monitor over the quality of the foods through the media. It has helped the organization in introducing their new range of healthy products in the market (Hammer,  2015). The usage of the oil containing the Tran’s fatty acids or the Sudan Red is being banned by the organization after the breakout of the news in the media (Osborne,   Radnor  & Nasi,  2013). The proper management of the organization would have helped the organization in making a prosper in the market. It would have helped the organization in maintaining the quality of the food that is being delivered by the organization in the markets.

The theories that are being enumerated in the previous section of the report are based on the proper undertaking of the management functions of the organization. It helps in determining the different aspects of the change in the quality management of the products. Rice,   (2013) believed the company follows the Scientific theory of management which helps in determining the expansion of the activities undertaken by the organization. It helps in undertaking steps for the proper development of the organization in the market. However, it is totally focused on enhancing the productivity of the organization in the markets. The quality of the products is negligible according to this theory, as the productivity is the major purpose of the management following this theory.  Alexander,   (2013) believed that he proper undertaking of the management of the organization helps in determining the aspects of the change in the situation of the organization in the markets. The evaluation of the scientific theory of management has helped in the understanding of the different aspects of the development of the organization based on the enhancement of the productivity of the organization. The understanding of the different aspects of the change that is being undertaken by the organization is based on the effectiveness of the functioning of the organization in order to bring in changes in the productivity of the organization in the market (Hayes, 2014). The practices that are being undertaken by the organization are based on the understanding of the steps that are being undertaken by the management of the organization for enhancing the functioning of the organization in the market. The decisions that are being undertaken by the organization are not based on the welfare and health of the people working for the organization. The ethics seem to collide with the objectives of growth and expansion of the organization.

Impact on KFC’s Business

According to Shafritz, Ott  and Jang  (2015), the Bureaucratic theory of management helps in determining the aspects of the quality and the productivity of the organization. It is specifically based on the Virtue ethics of the workforce. However, the major aspects of the change that is being undertaken by the organizations for bringing in modifications in its systems have helped in progress made by the same. The theory has helped in the understanding of the different aspects of the improvements in the structure of the organization in the markets. Alternatively, the Administrative theory has helped in determining the different aspects of the production and the enhancement of the situation of the organization in the market. Dalkir  and Beaulieu (2017) believed that the proper management of the organization is an important step that is required to be undertaken in order to bring in changes in the structure of the organization in the markets. The proper management of the organization relating to the quality of the products and the services and the efficient functioning of the workforce helps in determining the progress of the company (Van Der Aalst, La Rosa  & Santoro,  2016). On the other hand, the competitive environment that is being created by the concerned company in the workplace has affected the working environments (Brigham  & Ehrhardt,  2013). The major aspects of the change that the company aims at undertaking helps in determining the different aspects of the management related issues faced by the organization. The consequences that are being faced by the organization are based on the dependability of the same on the ethical decisions and the well motivated and ethical workforce. The ethics of the smooth functioning workforce helps the organization to make its progress in the market (Hill,   Jones  & Schilling,  2014).

The company must take steps in order to bring in changes in the structure and the functions of the organization in the market. On the other hand, the promotional activities that might be undertaken by the management body of the organization have helped in the proper understanding of the situation of the business in the market. The involvement of the media to promote the healthy products manufactured by the company has helped in resolving the issues that are faced by the organization in the market.  The major aspect of the change that is being undertaken by the organization is to promote the new range of healthy food deliverables. It helps in attracting the attention of the customers. On the other hand, the proper management of the organization helps in the developmental process of the organization in the market. It helps in the retention of the goodwill in the market. The proper management of the organization has helped in undertaking steps for bringing in improvements in the structure and the systems of the organization. The proper functioning of the organization has helped in undertaking steps for the better functioning of the organization.

Conclusion

Maintenance of business ethics in the operation holds or increases the value of business.  However, in every year, even the large businesses have been seen to be involved in ethical issues. Consequently, the number of debates, dilemmas centering business ethics, which attracts a significant amount of attention from different quarters, are increasing day by day.  On the other side, consumer and regulatory bodies of the market or nations could also ask for the justification of unethical business actions. Moreover, hiding an unethical business action can never be a solution, as the media tend to keep a special attention on the corporate sector as well as the possible malpractices.  In the case of KFC , consumption of oil that is unhealthy can certainly be considered as an ethical dilemma.  KFC is a large brand with wide global market; certainly, the brand has effective market reputation. In addition, customers have high expectation from such brands. Thus, unethical action- such as the use of unhealthy oil certainly creates a significant business issues. The intensity of such problem could tarnish the brand image of KFC. As discussed above, in order to avoid such issue in the operation, the firm needs to pay special attention to the quality of products.

As discussed above in the report, the criteria of manufacturing quality products should include the element of ethics. Bureaucratic theory discussed above helps to lean how a firm could enhance its quality of products and services meeting customers’ needs and maintaining all ethical grounds.  Likewise, the use of scientific theory helps to learn how a firm can keep the balance between the quantity and quality of products without harming or affecting the ethical grounds. Moreover, besides the quality and quantity, the organization also needs to pay attention to the facts how an organization can keep its customers safe from the possible damages. Therefore, at the time of applying strategies, the organizations also need to think of the principles mentioned by regulatory bodies. Thus, the administrative theory discussed above in the report provides the idea how a business operates its functions successfully without harming its key stakeholders’ interest. In order to avoid such ethical issue and keep the brand safe from losing its public image, KFC has been proposed to use social media channels, where it can promote its healthy products and services to a platform of consumers. Digital media channels help to promote the products in a faster way that eradicate or make consumers ignore the past event, as in digital media, the consumers only consider the latest actions.

References

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Birolini, A. (2012). Quality and reliability of technical systems: theory, practice, management. Springer Science & Business Media.

Brigham, E. F., & Ehrhardt, M. C. (2013). Financial management: Theory & practice. Cengage Learning.

Dalkir, K., & Beaulieu, M. (2017). Knowledge management in theory and practice. MIT press.

Easterby-Smith, M., Thorpe, R., & Jackson, P. R. (2012). Management research. Sage.

Giacalone, R. A., & Rosenfeld, P. (Eds.). (2013). Impression management in the organization. Psychology Press.

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Harper, C. (2015). Organizations: Structures, processes and outcomes. Routledge.

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