Research Paper on "Company Kentucky Fried Chicken (KFC)"

Research Paper 8 pages (2777 words) Sources: 10

[EXCERPT] . . . .

company Kentucky Fried Chicken (KFC) and how they deal with ethical issues. KFC is a fast-food company with origins in the 1950s in Kentucky. It is the most well-known chicken fast-food franchise in the world, and throughout its history, there have been questions about some of its business ethics and practices.

A Definition of Business Ethics

Ethics in business has been a long-standing symbol of what is wrong with much of corporate America. The Enron and WorldCom scandals, along with the ethics of Wall Street investment firms paying outrageous bonuses after a taxpayer bailout make that abundantly clear. The word "ethics" comes from Latin, and it means a moral philosophy based on the knowledge between right and wrong. A company's business ethics indicate its moral and ethical responsibility and outlook, and many people believe this should be the heart of any successful business. One writer notes, "And with increase in knowledge comes an increase in moral responsibility for both rectifying the harmful, unintended consequences of our actions and providing assistance to those in need" (Barrera 2008). The KFC Web site notes that it is involved in community, family, and individual concerns of its suppliers, employees, and customers, and it does have some programs that back this up.

However, the information is extremely limited, and there is no mention of global programs that bring its many overseas operations on board with ethical practices and concerns. This is the case with many global companies. Author Barrera continues, "The pressure is intense on firms to focus on the bottom line and be attentive to their shareholders' interests as a matter of survival" (Barrera 2008). For the most part, most stakeholders are more interested in bottom line profits rather than ethical concerns, although they might protest otherwise. Business ethics can make or break a corporation like KFC, so it is important to monitor their corporate awareness and reaction to ethical concerns.

A History of Kentucky Fried Chicken

Founded by Colonel Harlan Sanders in 1952, KFC has become one of the most successful fast-food enterprises in the world. Two authors note, "KFC is the world's leading restaurant in the chicken category. Established by Colonel Harland Sanders in 1952, it has more than 11,000 restaurants in 80 countries and territories and serves about 8 million customers each day" (Lamb and McKee 2005, 197). Harlan Sanders literally started the company out of his own home, and after initial success, he developed a recipe for fried chicken and the accompanying side dishes. In the beginning, he drove from town to town, attempting to convince restaurant owners to use his unique method of cooking chicken. When they agreed, he received a portion of their chicken sales, and that is how he began his multi-million dollar empire. By 1964, he had over 600 franchises, and he sold his interest in the company, but continued to represent it as its spokesperson ("Colonel Harlan Sanders" 2010). Today, the company is part of the Yum! Brands Inc., which also owns and/or operates the Taco Bell, a&W, Pizza Hut, Long John Silver's, and Wingstreet restaurant franchises.

Corporate Ethics

Their owner, Yum! Brands, sets KFC's corporate ethics. Their Web site offers an overview of their ethical policies regarding suppliers, with a supplier code of conduct that includes guidelines on compliance with laws and regulations, employment practices, child labor bans, employee notifications, and other concerns. They also note that suppliers should conduct regular audits and inspections to ensure compliance, and that a relationship will be terminated if suppliers do not abide by the code of conduct ("Supplier Code" 2010). They offer a separate animal welfare code of ethics, which includes an advisory council and ethical guidelines. This is partially as a result from an ongoing battle with the organization People for the Ethical Treatment of Animals (PETA) that resulted in KFC altering its corporate approach to chicken farming practices, which will be discussed later in this paper.

It is not clear how ethical KFC is with its employees and employment practices, although there have been some studies that show they value ethical treatment. While they offer information on careers and working with KFC, they do not seem to have a corporate ethics policy for employment, at least it is not available at their Web site. Their "Careers" site seems to cater most to young employees working as part of a "team," rather than discussing corporate employment or opportunities. Another writer notes, "The company's recruitment practices largely focus on the capabilities of the potential candidate rather than on their respective race, cultural backgrounds etc. In line with these practices, the company usually offers overtime for employees who decide to work beyond the normal working hours" (Smith 2010).

KFC's Animal Ethics

KFC has had a history of battling with animal rights groups like PETA because of their reliance on animal products for their restaurants. Most chickens grow up in factory farms where living conditions are extremely difficult. Two authors note, "In contrast to the bucolic farms portrayed in storybooks, most farm animals in the United States are raised on 'factory farms' -- large industrial facilities typically housing thousands of animals indoors at high densities" (Matheny and Leahy 2007). Chickens are especially susceptible to factory farm conditions, because they can be crammed into large cages at a high density, which is much more cost effective for the farmer, but very hard on the physical health of the chickens. They can become lame from the inability to move in these conditions, and they can become ill, as well. The two authors continue, "Most farm animals cannot engage in natural behaviors such as foraging, perching, nesting, rooting, and mating, and many are not even able to turn around or fully stretch their limbs" (Matheny and Leahy 2007). They can also be injured if they are captured by hand, and these were some of the issues PETA raised when the decided to protest against KFC and its suppliers' practices.

One of the most outrageous charges came in 2004 after a videotape shot at a chicken slaughterhouse surfaced, showing workers committing atrocities on live chickens before they were slaughtered. It raised questions about the entire industry and embarrassed the chicken company and KFC. A New York Times reporter notes, "The tape was taken surreptitiously by an investigator for People for the Ethical Treatment of Animals who worked from October 2003 to May 2004 at a Pilgrim's Pride plant in Moorefield, W.Va., that won KFC's 'Supplier of the Year' award in 1997" (McNeil 2004). Initially, PETA began protesting against KFC in 2003 concerning its animal policies, and KFC created a new animal welfare advisory council and adopted polices to oversee the welfare of the animals it used in its restaurants. Two authors continue, "On May 1, 2003, KFC announced that it would adopt comprehensive poultry farm standards developed by animal welfare experts under a commission from the National Council of Chain Restaurants and the Food Marketing Institute" (Lamb and McKee 2005, 199). Clearly, the abuse tape surfaced after KFC adopted these guidelines, which indicates how little control they really have over the ethical treatment of animals thought their suppliers. Reporter McNeil continues, "KFC says all its suppliers train their workers in animal welfare, but the investigator said Pilgrim's Pride had nothing on the topic in its orientation manual and the only instruction he received was after five months, and then only in how to wring a chicken's neck by hand" (McNeil 2004). The KFC policy states that suppliers have to conduct audits and inspections, but clearly, they did not enforce this clause, to the harm of the chickens at the Pilgrim's Pride plant.

While KFC continues to tout its animal cruelty measures, many people simply don't believe them. An anti-KFC Web site, called "Kentucky Fried Cruelty" (powered by PETA) says that several members of the KFC animal advisory board have resigned because of KFC's lack of interest in their input. The site states, "One of them, Adele Douglass, told the Chicago Tribune that KFC 'never had any meetings. They never asked any advice, and then they touted to the press that they had this animal-welfare advisory committee. I felt like I was being used'" ("Why KFC?" 2010). Today, PETA asserts that most of the animal advisory board is made up of executives with KFC suppliers, who unmistakably have a conflict of interest in sitting on the board. Clearly, there are questions about the ethical practices of many of KFC's suppliers, and with how KFC is really addressing these issues. Since the controversy continues to this day, it seems KFC has not really addressed the problem of animal cruelty, even though it continues to assert that it is concerned and has taken measures to correct the problem. According to PETA and many vocal supporters, that is an outright lie, which is why they continue to ask the public to boycott KFC. In fact, celebrity Pamela Anderson has even asked the Governor of Kentucky to remove a statue honoring Colonel Harlan Sanders in Louisville… READ MORE

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