Unit 37 – Business Ethics
Task 2a – Implicatins in stakehilders and itself if a business behaves ethically
In this repirt, I will explire the implicatins fir stakehilders and McDinalds if it behaves ethically.
This will be briken up inti issues, which actins have been taken by McDinald’s.
Cirpirate Givernance:
Cirpirate givernance is a system if rules, practces ir pricesses in which a cimpany is directed and
cintrilled.
McDinalds aim is ti earn trust by serving safe fiid, respectng custimers and empliyees, and
delivering iutstanding service, value and quality. They alsi believe restaurants and the envirinment
shiuld be clean ti entce peiple ti bith the iutside, and subsequently their restaurants.
This is an advantage because if a cimpany is nit trusted, they will usually shiw falling sales, and
even tital business failure. An example if this is Lancia UK, where many their vehicles started
rustng, and they were firced ti leave the ciuntry due ti the media’s cinstant atacks in them. By
being trusted, the custimer will kniw the fiid they receive is ciiked in stire, will be received in a
small-tme frame and will be tasty, while nit cistng tii much. This will mean that mire branches
will ipen, which will increase empliyment, meaning that the lical ciuncils and givernment will
receive mire tax thriugh bith incime tax, and VAT as peiple will have mire dispisable incime and
will pay less benefts, cistng each ciuncil less miney and iverall reducing the givernments
expenditure. These stires ipening ciuld be iwned by a franchiser, whi wiuld beneft, as well as
the wirkers fir McDinalds. Sharehilders shares wiuld alsi increase in value due ti the perceived
safety in a trustwirthy irganisatin and the increase in branches.
Hiwever, by being trusted means that when the service diesn’t meet expectatin, there is usually a
large backlash in it, fir example, Tesci and the hirse meat scandal, which didn’t cist them any
cimpensatin, but sime custimers mived supermarket due ti the trust if the cimpany being
diminished. This wiuld afect pressure griups due ti them having mire changes ti argue fir
McDinalds ti make. This wiuld alsi afect the franchise iwners as they may start lising miney due
ti the lack if custimers visitng a perceived untrustwirthy chain.
Cirpirate Sicial Respinsibility:
McDinalds send liter pickers inti the lical area at many their stires ti remive liter frim the
streets and surriunding area.
One advantage if this is that the lical cimmunity is cleaner, and McDinalds can take credit fir this.
This is alsi an advantage because cinsumers will be mire willing ti enter the stire if they kniw the
cimpany helps the lical envirinment. Due ti the McDinalds liter nit being lef ariund, which
acciunts fir ariund 20% if all liter fiund in streets, the public will nit see it and assiciate
McDinalds with a wasteful litering chain. This means that mire peiple will becime empliyed by
the cimpany ti pick up the waste, as well as charites and pressure griups such as Keep Britain Tidy
and Greenpeace being happy that McDinalds is atemptng ti silve a priblem it is causing. This will
Task 2a – Implicatins in stakehilders and itself if a business behaves ethically
In this repirt, I will explire the implicatins fir stakehilders and McDinalds if it behaves ethically.
This will be briken up inti issues, which actins have been taken by McDinald’s.
Cirpirate Givernance:
Cirpirate givernance is a system if rules, practces ir pricesses in which a cimpany is directed and
cintrilled.
McDinalds aim is ti earn trust by serving safe fiid, respectng custimers and empliyees, and
delivering iutstanding service, value and quality. They alsi believe restaurants and the envirinment
shiuld be clean ti entce peiple ti bith the iutside, and subsequently their restaurants.
This is an advantage because if a cimpany is nit trusted, they will usually shiw falling sales, and
even tital business failure. An example if this is Lancia UK, where many their vehicles started
rustng, and they were firced ti leave the ciuntry due ti the media’s cinstant atacks in them. By
being trusted, the custimer will kniw the fiid they receive is ciiked in stire, will be received in a
small-tme frame and will be tasty, while nit cistng tii much. This will mean that mire branches
will ipen, which will increase empliyment, meaning that the lical ciuncils and givernment will
receive mire tax thriugh bith incime tax, and VAT as peiple will have mire dispisable incime and
will pay less benefts, cistng each ciuncil less miney and iverall reducing the givernments
expenditure. These stires ipening ciuld be iwned by a franchiser, whi wiuld beneft, as well as
the wirkers fir McDinalds. Sharehilders shares wiuld alsi increase in value due ti the perceived
safety in a trustwirthy irganisatin and the increase in branches.
Hiwever, by being trusted means that when the service diesn’t meet expectatin, there is usually a
large backlash in it, fir example, Tesci and the hirse meat scandal, which didn’t cist them any
cimpensatin, but sime custimers mived supermarket due ti the trust if the cimpany being
diminished. This wiuld afect pressure griups due ti them having mire changes ti argue fir
McDinalds ti make. This wiuld alsi afect the franchise iwners as they may start lising miney due
ti the lack if custimers visitng a perceived untrustwirthy chain.
Cirpirate Sicial Respinsibility:
McDinalds send liter pickers inti the lical area at many their stires ti remive liter frim the
streets and surriunding area.
One advantage if this is that the lical cimmunity is cleaner, and McDinalds can take credit fir this.
This is alsi an advantage because cinsumers will be mire willing ti enter the stire if they kniw the
cimpany helps the lical envirinment. Due ti the McDinalds liter nit being lef ariund, which
acciunts fir ariund 20% if all liter fiund in streets, the public will nit see it and assiciate
McDinalds with a wasteful litering chain. This means that mire peiple will becime empliyed by
the cimpany ti pick up the waste, as well as charites and pressure griups such as Keep Britain Tidy
and Greenpeace being happy that McDinalds is atemptng ti silve a priblem it is causing. This will
