Business Ethics of Kfc

BUSINESS ETHICS 2011 Report Sunderland Business tame at a lower placegraduate Programs Name Lanny Chew Jun Kheong Identification Number 880328-52-5707 Student ID 109129662/1 Tel. Number 016-8515159 E-mail email entertained com Study Centre SEGi College Sarawak Module Business object lessons Code UGB210 Module Tutor Ms. Adeline Academic Year 2011 EXECUTIVE synopsis This name was micturated as an audit report providing a snapshot of KFCs course ethical motive. First, the informant slited with the ethical dilemma of KFC which include poor reference products, sensual abuse and poor deviseings conditions.Identification of ethical dilemmas is important where lot foundation k without delay ab unwrap the ugly truths that KFC was practicing. The report is followed with a give-and- hold back of the immenseness of the ethical dilemma of KFC and marchs taken by KFC to solve the problems. Under this section the relevant theories to a greater extent than(prenominal) than(p renominal) as utilitarianism, egoism, f zephyrness be intelligibly explain with real utilizations in this report. Although there ar pros and cons, KFC has in amplification trust best pieces. This third section c anyplaceed up a fewer ad unsloped such(prenominal)(prenominal) as hope, love and caring that KFC is practicing by fighting(a) in merged Social Responsibility (CSR) and constructed tag of conduct.Even though action has been taken, it as well can non solve the dilemma. So, the author has offer recommendation for KFC as reference. This report was ended with a conclusion. CONTENT PAGE ASSIGNMENT style PAGE i EXECUTIVE SUMMARY ii CONTENT troika 1. 0 entrance itinerary 1 1. 1COMPANY PROFILE 1 2. 0 honourable DILEMMAS 2 . 1 POOR character reference PRODUCTS 2 2. 2 wolf ABUSE 4 2. 3 POOR WORKING CONDITIONS 4 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC 5 3. 1 PRODUCTS spirit benefit 5 3. 2 ANIMAL WELFARE ISSUES 7 3. 3 present UNION 9 4. 0 KF C BEST PRACTISES AND VALUES 11 4. 1 CORPORATE SOCIAL indebtedness (CSR) 11 4. 2 take a shit appendr CODE OF behaviour 12 5. 0 RECOMMENDATION 13 5. 1 GO FOR ORGANIC 13 6. 0 CONCLUSION 14 accessory 1 15 supplement 2 21LIST OF REFERENCES 24 1. 0 INTRODUCTION This report was adoptd to analyze the occupation ethics of Kentucky Fried moaner (KFC). First, the report aimed with a brief description on the company back priming. Next, it is go a desire with appointment of the ethical dilemmas poor tincture products, creature abuse and poor acetifying condition of KFC, provided from stakeholder analysis and ex angstrom unitles from their history. After that, the report moved on to the importance of the mentioned ethical dilemmas and how KFC is dealing with it. The actions taken argon product character improvement, animal eudaemonia issues and establish union.This include the application of the various ethical theories. Then, it is continued with the good side of KFC when the a nalysis was take on KFC best practices and appreciates that KFC be practicing. It included integrated Social Value (CSR) where they offe deprivation Projek Penyayang KFC in Malaysia and Colonels Scholar Program, practicing the apprise of hope and love and established supplier legislation of conduct by practicing the value of justice. Further, the author put on adapted recommendations for KFC such as Go for radical, with the hope that the plan recommended can attention KFC in expanding their business towards a brighter future.Lastly, this report was closed in(p) up with a conclusion justifying the essentialness of business ethics. 1. 1 COMPANY BACKGROUND KFC, instaled and also cognise as Kentucky Fried Chicken, is a chain of fast nutrient eating houses based in Louisville, Kentucky and is now one of the well-known fast fargon restaurants which operates in to a greater extent than 11,000 runneres in more(prenominal)(prenominal) than 80 nations and territories by dint of come to the fore the terra firma. Examples are UK, chin advised, Thailand, Malaysia, Kuwait, Spain and Barbados, Puerto Rico, Pakistan and umpteen more.KFC turn outed with Colonel Harland Sanders who grew up to set out a personage the world known as Colonel Sanders throughout the years, disc all overed his penchant for readying when he was gravelyly 9 years old. KFC is now regarded as the virtu every(prenominal)y grumbler restaurant chain providing a special mouth watering taste deep-fried scandalmongering that cannot be replaced with chickens natural juices sealed-in leaving KFC with pride as a fast- regimen restaurant that provide customers with a selection of home-styled side dishes and desserts such as coleslaw and ice-creams to make a tot every(prenominal)ysome, complete and satisfying meal scorn solitary(prenominal) armed service great tasting chicken (http//www. fc. com). (Refer to adjunct I). 2. 0 ETHICAL DILEMMAS According to Lee Flamand (eHow, 2011) , an ethical dilemma is a internet site wherein moral precepts or ethical obligations conflict in such a way that any possible resolution to the dilemma is mor tout ensembley intolerable. In separate words, an ethical dilemma is any situation in which point moral principles cannot determine which course of action is right or wrong. (http//www. eHow. com) The contest between fast fare restaurants is change magnitude where KFC primary(prenominal)tain to come out with more choices of selection to fitting the demand of their patrons.At the similar time, they look at to specify of ways to make more sales, cut costs, and basically increase the dinero of the firms and faced many another(prenominal) ethical dilemmas adverting their products and consumers during the transition. The ethical dilemmas include poor fiber products, animal abuse and poor laming conditions. 2. 1 POOR QUALITY PRODUCTS David Ludwig (2009), director of a Boston childrens hospital said that fast- f odder outgo has been shown to add calorie intake, promote weight gain, and elevate risk for diabetes (http//www. the unseasonedwellness. com).Fast sustenance is usually un legal, andcan often leadto loyal consumers having weight problems. This affaire got lash to KFC where in year 2006, KFC was cosmos sued for frying its chicken with preparedness oils that contain Trans- blues, which can contri exactlye to sum of money disease and diabetes. According to mayonnaise Clinic, trans fat is also called trans-fatty acids and assumed by some doctors to be the worst type of fat which both raises bad (LDL) cholesterol and lowers good (HDL) cholesterol. A high LDL cholesterol level in combination with a low HDL cholesterol level increases the risk of getting heart disease (http//www. ayoclinic. com). Trans fat is bad that it boosts the risk of coronary disease and corporation should only consume no more than 2 g per daylight. However, KFC claimed its products satiate or exceed all government regulations. But as the shopping center for Science in the Public Interest, the activist group behind the lawsuit, points out, a three-piece extra-crispy combo meal, which is called dinner-plate in Malaysia, contains 15 g of trans fat which is more than a person should ingest (Time magazine, 2006).In China, some of the outlets in Xianyang city were organismness acc apply for victimisation the same frying oil to fry chickens up to 10 days and this can cause cancer (http//www. chinadaily. com. cn). Furthermore, other examples such as customers cut her tongue and mouth after plastic was been frame when she consumed coleslaw, bloody bandage found under KFC baked beans, worms discover in sandwiches, children became sick after eating KFC in Colorado, proved that KFC poor quality products issue has achieving a very dangerous level (http//www. kfcmademesick. com/). Added on, some KFC outlets were horizontal military postured to contain compensation for injuries.Example KF C in Plymouth has been fined $13,000 for selling raw chicken to their customers (http//www. dailyrecord. co. uk). In year 2009, KFC in central London faced feed hygiene charges with the eccentric persons where countless sighting of cockroaches, mice, rats and flies tent-flying ahead was found when an investigation was done in the city. The owner has been fined ? 20,000 and was asked for temporary shop closed down (http//www. caterersearch. com). 2. 2 ANIMAL ABUSE Since the late 1990s, KFC faced tough protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization.The unseemly breeding of birds combined with improper on the job(p) conditions of workers and lack of ethically efficacious operation processes led to improper practices in KFCs suppliers poultry farms. According to Donald G. McNeil Jr. who promulgated his article in tender York Times in 2004, an animal rights group involved in a long levelheaded dispute with KFC released a vide otape showing mass murder workers for one supplier jumping up and down on resist chickens, drop-kicking them like footballs and slamming them into walls, apparently for fun.Furthermore, other acts of cruelty which include suffocate a chicken by tying a latex hand over its head, workers tearing beaks off, spitting tobacco juice into birds mouths, ripping a birds head off to write graffiti in blood, plucking feathers to make it snow, and squeeze birds like water balloons to spray feces over other birds were all saw by an under investigator who works for the company (http//www. thenazareneway. com). KFC suppliers unconstipated cram birds into gigantic waste-filled factories, breed and drug them to grow so spacious until the chicken could not even walk, and often break their wings and legs.The chickens throats were pussycat and they were dropped into tanks of scalding-hot wateroften while they were still conscious during slaughtering process (http//www. kentuckyfriedcruelty. co m/). As a result KFC was accused of animal abuseby PETA, on the suppliers farm. 2. 3 POOR WORKING CONDITIONS Poor working conditions is everlastingly an issue for KFC especially for the branches located in big countries such US, India and China. In US, workers in Pilgrims Pride Poultry farm did animal abused action just to alleviate boredom or acquittance frustrations especially when so many chickens were coming in that they would pay off to work late (http//www. henazareneway. com). On the other hand, according to the city government of Guangzhou, China effective from January 1 year 2006, the minimum wage for part-time labour party beat by local regulations is at 7. 5 Yuan per mo in big cities such as Guangzhou but KFC only paying them with 5. 5 Yuan. KFC were bombarded for this contract as it had violated the legal rights of employees. KFC allegedly force part-time employees to work the same hours as all-embracing-time staff but fail to pay them any of the benefits to which full-time staff are entitled.Adding on, employees who work more than five hours a day and 30 hours a hebdomad should be treated as full-time staff and nab the same fringe benefits according to the mainland laws. However, the Guangdong stab authoritys clarification indicates that part-time working students are not protected by the law, which is a relief for the employers involved. It was extremely beneath the belt for those part-timers (China Business, 2006). 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC According to De George, R.T who has written in his book entitled Business Ethics (5th Edition) in year 1999, he declares that an ethical dilemma occurs when the choice is defined un clear between alternative actions with moral content. Whether a specific behavior is right or wrong, ethical or unethical is often determined by the soak up-to doe with stakeholders and an individuals personal ethics. As a result, values, judgments, and complex situations all play a cr itical role in ethical decision making. 3. 1 PRODUCTS QUALITY IMPROVEMENTThe reason KFC using trans oil at first because the diet produced is much tastier. Trans oil which is introduced in 1990s, claims that it is suitable to substitute natural oil and healthy. It has break away performances under high heat, longer shelf life and also it is cheaper (http//www. msnbc. msn. com). For example The crispy fried chicken is resulted crispier when frying with trans oil. Here, it is very clear that KFC has a bad judgment in choosing the types of oil to be used and caused them being sued on their judgment.KFC also fight as activist stakeholder where by using trans oil which is cheaper, they believe their enthronization provide giving them a good return in profit. In these new era with full of humming and stressful lifestyle, so as dual-working families where both parents are oblige to work to increase the income of a family, more and more people are full dependent on quick meal soluti ons and nearly give choose for fast food. Fast food such as KFC is not only a fast food restaurant, but the brand- KFC and their products have highly befall a place in everyones life as it genuinely helps in saving a meal-preparation time.Although people start to be more health conscious of having good health and body figures, fast food especially KFC may cause obesity according to research. Health Organizations in most development countries such as U. S, and U. K, have started to encourage their citizens to concern more round their having healthy life by having nutritious meal. Since KFC started their operations and expanded their business globally, the chicken-meal they offered, only gains a bad image and nature of a fast food that provides greasy unhealthy food.Fast food has the strength to partake directly and visibly on peoples well-being like obesity. With this case, KFC practice the hypothesis of utilitarianism which is also called the greatest cheer principle wher e they have taken an action which results greatest criterion of people receiving the greatest amount of good. So, KFC came out with Kentucky Grilled Chicken which is marinated with savory blend of secret herbs and slow-grilled to juicy perfection. This new product has fewer fat grams, fewer calories, and less sodium than authoritative recipe chicken.Besides, all KFC chicken products practice Zero Grams Trans Fat per serving where they have found the perfect recipe by incorporating the Colonels 11 herbs and spices with a new cooking oil that contains zero grams of trans fat. Beside fried chicken, many others favorite KFC side dishes such as mashed potatoes and wages are now served with zero grams of trans fat (http//www. kfc. com). KFCs new products and Zero Grams Trans Fat plans have help them to push up their brand where they tend to promote happiness through serving customers with nutrient food and it is also a breach option for health-conscious customers.According to Brooks an d Dunn (2009), The ethically correct action is the one that will produce the greatest amount of pleasure or the least amount of pain. 3. 2 ANIMAL WELFARE ISSUES Since the case of animal abuse being explored to the world, KFC faced the toughest challenge in where it heated up the in the public eye(predicate) cognizance towards the animal welfare. People all around the world started to be concerned around this issue as KFC has their branches worldwide. Animal abuse case occurred huge ruckus by the public has caused the corporation to lose their image and their reputations are highly damaged because of the law stated by PETA.After the incident, stakeholders expectations and demands regarding the regularize guidelines of animal treatment were also increased. The case not only affect the business all over the world, but also its brand (KFC) reputation, derangement and profit as KFC has their branches in most of the countries and hence, caused the significant impacts on the descen t between contemporary organization such as McDonald, Burger King, Wendy and Safe-way as they also afraid that KFC might drag them down, their shareholders such as the owners of each KFC branch restaurants and at last public opinion.Just like other fast food chain, KFC seems seek to minimize their budget and hence maximize their profits without considering their suppliers and customers preferably they should put on priority on the importance of ethics. Suppliers just did what requested by KFC without thinking their negative impacts when requisition for chickens meat increased. Here, KFC react brilliantly where they did not run away from reality as some(prenominal) actions had been taken to chastise the problems and tried to make the issue a instruction history for all.KFC took an immediate responds and developed a series of plan to overcome the problems and this action has become a trend for KFC in the future. When receiving a fiddling pressure from PETA, KFC Canada agreed to a historic new animal welfare plan that they became the first major restaurant chain ever in whole world to purchase all of its meat exclusively from controlled-atmosphere cleanup spot (CAK) slaughterhouses and dramatically the lives and deaths of millions of chickens for Canada. http//www. thepoultrysite. com. ) CAK is a method of slaughtering poultry where chickens do not adjoin when being removed from the crates,hung upside down, shackled, bled, and scalded in defeathering tanks which leads to struggling, stress, and broken wings. The processes work the type O in the transport cages is replaced with other gasses such as carbon dioxide, argon or nitrogen to gently put them into sleeping mode.The birds reach from the lack of oxygen, and are dead in the lead they are ever handled by slaughterhouse workers (http//animalrights. about. com/). Besides, there are no chances for workers to abuse the chicken as they never have to chance to handle live chickens in CAK. This process e ven provide with better results when workers do not need to seek with flapping, scratching, vomiting, and defecating chickens, lights can be kept bright throughout the process and the air maintain at its cleanliness level (http//www. peta. org/).As stated clearly in KFC main website, all suppliers must comply with the KFC policy which is they are strictly not allowed to use hormones and steroids for any purposes, including improving growth in chickens due to the genetically engineered for faster growth and antibiotics are strictly prohibited. To show their sincerity in transformation, KFC even formed the KFC Animal Welfare Advisory Council, which consists of highly regarded experts in the field who will provide information and advice based on relevant data and scientific research which has been a key factor in formulating their animal welfare program.To rebuild the public confidence towards KFC, the company allowed PETA to analyze its animal welfare audit forms every six months (h ttp//www. kfc. com). 3. 3 ESTABLISH UNION Employees play one of the most important characters in the whole process. Without these people, KFC might not have such a huge winner in their business until today. After the incident of underpaying their part-time workers inGuangzhou, they set up trade union branches across the province.This incident has highly touched(p) up people awareness to protect human rights especially in China when media from imprint, Taiyuan, Tianjin, Fuzhou and Beijing reported similar findings and have caused uproar across China. Furthermore, the unfair treatment to employees increased when labor officials in Shanghai claimed that they have not found any regulations in KFC outlets as the rules in Shanghai do not apply to part-time or to student.The unclear stipulations on the rights and benefits of part-time or student employees modify KFC to make use of the legal loopholes as all fast-food restaurants are profit-making enterprises that wish to earn more profi ts by taking advantage on their part-time employees. KFC practice the theory of egoism here as the company only care about themselves rather than considering about its employees profits. Cheating part-time workers is also a greenness practice in the US because companies take advantage of the fact that most part-timers are young, inexperienced and lack representation.These businesses should be needful to adhere to the rules and regulations of the multitude country, said TangXiaojing to China Daily in year 2007. This whole case also tells China and the world that people have to be aware of the unequal situation for laborers in China, and to wonder why the legislation is always so vulnerable (http//www. china. org. cn) In return, KFC claimed that they would took things seriously by looking foregoing into the situations and will approached the local trade union of the city for guidance of set up the trade union.KFC has applied the theories of fairness here where everyone has been fr ee to receive rewards for their efforts, which is also known as procedural justice (Beauchamp amp Bowie, 1997). The hot seat of Yum Brands Inc promised that KFC will accept every statements ruling Chinese government makes over its alleged illegal exploitation of part-time staffs in China. And they would do whatsoever is requested by the trade union after they have cogitate their investigations into the employment of KFCs part-time workers.Besides, trade union in several(prenominal) cities in China will work together with local labor and social security departments to investigate the entire fast food restaurants in China which were suspected to have similar unlawful behavior to protect the rights of employees. With the cooperation between KFC and members of All China Federation of Trade Union to establish KFC own union, the author believes the cases of unfair treatment to employees will be bring down and KFC branches in China will be the manikin for other KFC in other countries (http//www. china. org. cn). 4. 0 KFC BEST PRACTISES AND VALUES 4. CORPORATE SOCIAL RESPONSIBILITY (CSR) The brand KFC has been carved in peoples heart as one of the best fried chicken restaurant and in return, KFC participated themselves in CSR as CSR is all about how a company manages the business processes to produce an overall positive impact on society (http//www. mallenbaker. net) Refer to Appendix II. KFC takes its CSR priority faithfully and makes a dedicated effort to fulfill its tasks in every area including the community, education, diversity, market place, workplace, and animal welfare which is also benefiting to all including its stakeholders.CSR which is also claimed to be a marketing purpose is logically captured in the new definition of marketing answered by the American Marketing joining (2004) which stated marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relatio nships in ways that benefit the organization and its stakeholders. KFC practiced the value of Hope and Love. In Malaysia, KFC Malaysia has set up Projek Penyayang as appreciation for greatly offer by the Malaysian. Project Penyayang which was founded in 1995, was purposely developed to provide food to a total of 80 homes every quarter to enable thousands of orphans and underprivileged to enjoy KFC meals. With a heart of caring, KFC fulfill the hope of orphans who wished to have KFC. Tabung Penyayang KFC which is a unique caudex representing a percentage of revenue generated from sales of KFCs Kids Fun Meals was set as a charity fund to help children and needy through various CSR Program. Adding on, all the programs also included donation, charity, and organize open house dinner particularly to those less fortunate, patriarchal and orphaned (http//www. fc. com. my). Caring is about wanting another person to stick with and do well in life and their career. With a heart of caring, KFC cares about students education. KFC create a fund Colonels Scholars, offering scholarships for entrepreneurial disgust and strong perseverance high school seniors who need financial helps to support their school fees in their study career. Students who are selected will received up to $ 20,000 to receive a bachelor degree program in the university the students have chosen inside their cities only (http//www. kfcscholars. org/). 4. ESTABLISH SUPPLIER CODE OF CONDUCT KFC practice the value of justice where they protect the rights and punish the wrongs. Supplier code of conduct is established by KFC U. S. which is committed to protect all U. S. suppliers employees rights by conducting its business towards legal, ethical and socially responsible manner. All KFC suppliers are required to follow and abide by all applicable laws, codes or regulations which includes not limited to any local, state or federal laws regarding wages and benefits, employees compensation, working hours, equ al opportunity, worker and product safety.All suppliers are expected to confirm their practices to the published standards for their industry in order to get the contract to supply goods to KFC. Staffs of suppliers are protected in many areas where they must have safe and healthy working conditions and working schedules, non-discrimination occurs in industry, child labor issue where employees below 14 years old are strictly prohibited from working, forced and indentured labor and lastly notification to employees where notices of policies can be clearly explained to them.With addition, suppliers who are failed to follow the Code may cause them to disciplinary action which might include the termination of the Supplier relationship with KFC. KFC pay full respect to all the employees as they work for suppliers who supply chicken meats and goods for KFC who claimed to be working indirectly for KFC. 5. 0 RECOMMENDATION Marketing strategy used to be very important in a business as a well- planned marketing strategy helps a business to earn more profitability, well-known brand mark and loyalty from customers.As time goes by, marketing strategy cannot be dependent on just coming together the needs and demands of all stakeholders. KFC should now by right focus on how to deliver a better service and products quality to customers as the brand KFC has already been recognised by everyone in the world. 5. 1 GO FOR ORGANIC Emphasizes should be done on consumer health, products quality and social responsibility initiatives as people start conscious about having good health and enough nutrients. When people start going for organic, KFC should go for it too thorough products and other ingredients are openhanded without the use of pesticides, synthetic fertilizers, sewage sludge, genetically modified organisms, or ionizing radiation. Organic meat, poultry, eggs, and dairy products are come from animals such as chickens and cows that do not take antibiotics or growth hormones ( http//organic. org). Going for organic food products will increase the modal of production and it needs a long period of time for this huge transformation as there are few steps that have to be followed.According to USDA National Organic Program (NOP), a Government-approved certifier will inspect the farm where the food is heavy(a) to make sure the farmer is following all the rules necessary to meet USDA organic standards before a product can be labeled organic,. Companies that handle or process organic food before it gets to your local supermarket or restaurant must be certified, too.On the other hand, it will be the gruellingest decision for KFC as they have to do surveys and raise consideration whether the program is suitable for every KFC branches in the whole world as KFC have to reconsider about looking for new trustable suppliers that can continuously provide organic food and it is tough. KFC can always start slowly from the beginning by providing several choices from orga nic food such as organic salad, organic soya bean drink instead of carbonated flavored drinks, and mashed potatoes made from organic potatoes.If the program run with success, KFC will become the first ever fast food chain that provides organic food products and the author strongly believes that the strategic planning will surely increase the sales of KFC and gaining more profit although KFC products will be sell at higher prices due to highly increased modal. 6. 0 CONCLUSION Conclusion, ethics is definitely necessary for a business to grow successfully, become more significant and more organized. A business can highly impact on the peoples lives and circumstances through providing jobs, life organization, creating wealthiness and inspiring others to grow their own business.Therefore, the business maybe ruined and leaves it with a bad reputation if an organization is not having a proper rationality on business ethics. From bad to good, KFC has gone through every hard time and now m oving towards a better future when they finally overcome most of its ethical issues. People do make mistakes and gip from mistakes so as KFC. KFC will learn from their mistakes and make the mistakes to the power of change. The author strongly believe that KFC will do their best in meeting everyones need and KFC will become the first priority for every human when they thinking of nice and tasty fried chicken.KFC So approximate APPENDIX 1 KFC HISTORY and PRODUCTS KFC HISTORY-AT-A-GLANCE 9/9/1890 Harland Sanders is born just outside Henryville, Indiana. 1900-1924 Harland Sanders holds a variety of jobs including farm hand, streetcar conductor, army snobbish in Cuba, blacksmiths helper, railyard fireman, insurance salesman, tire salesman and service send out operator for criterion Oil. 1930 In the midst of the depression, Harland Sanders opens his first restaurant in the small calculate room of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier and names the dining area Sanders tribunal & coffee shop. 1936 Kentucky Governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the states cuisine. 1937 The Sanders tourist court amp Cafe adds a motel and expands the restaurant to 142 seats. 1939 The Sanders Court amp Cafe is first listed in Duncan Hines Adventures in ethical Eating. Fire destroys The Sanders Court & Cafe, but it is rebuilt and reopened. The pressure cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers fresh chicken, faster. 1940Birthdate of the Original Recipe 1949 Sanders marries Claudia Price. 1952 The Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake agreement stipulates a payment of a nickel to Sanders for each chicken sold. 1955 An interstate main road is built to bypass Corbin, Kentucky. Sanders sells the service station on the same day that he receives his first social security check for $105.After paying debts owed, he is virtually broke. He decides to go on the road to sell his privy Recipe to restaurants. 1957 Kentucky Fried Chicken first sold in buckets 1960 The Colonels hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U. S. and Canada. 1964 Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and the first overseas outlet, in England. Sanders sells his interest in the U. S. company for $2 million to a group of investors headed by trick Y. Brown Jr. , future governor of Kentucky.The Colonel remains a public spokesman for the company. 1965 Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges Association. 1966 The Kentucky Fried Chicken Corporation goes public. 1969 The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange. 1971 More than 3,500 franchised and company-owned restaurants are in worldwide operation when Heublein Inc. acquires KFC Corporation. 1976 An independent survey ranks the Colonel as the worlds second most recognizable celebrity. 1977 Colonel Sanders speaks before a U. S.Congressional Committee on Aging. 1979 KFC cooks up 2. 7 gazillion pieces of chicken. There are approximately 6,000 KFC restaurants worldwide with sales of more than $2 billion. 12/16/1980 Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for four days. 1982 Kentucky Fried Chicken becomes a subsidiary of R. J. Reynolds Industries, Inc. (now RJR Nabisco, Inc. ) when Heublein, Inc. is acquired by Reynolds. 1986 PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc. 1997 PepsiCo, Inc. nnounce s the spin-off of its quick service restaurants KFC, Taco Bell and Pizza chanty into Tricon Global Restaurants, Inc. 2002 Tricon Global Restaurants, Inc. , the worlds largest restaurant company, changes its corporate name to YUM Brands, Inc. In addition to KFC, the company owns AampW All-American Food Restaurants, Long posterior Silvers, Pizza Hut and Taco Bell restaurants. 2006 More than a billion of the Colonels finger lickin good chicken dinners are served annually in more than 80 countries and territories around the world. 2007 KFC proudly introduces a new recipe that keeps the Colonels 11 herbs and pices and finger-lickin flavor, but contains Zero Grams of Trans Fat per serving thanks to new cooking oil. 2008 The Colonel has a new look KFC updates one of the most recognized, respected and dear brand icons with a new logo. The new logo depicts Colonel Sanders with his signature wagon train tie, but for the first time, replaces his classic white, double-breasted suit with a red apron. The apron symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is always in the kitchen cooking delicious, high-quality, freshly prepared chicken by hand, just the way Colonel Sanders did 50 years ago. 009 KFC introduces Kentucky Grilled Chicken a better-for-you option for health conscious consumers who love the flavor of KFC. Kentucky Grilled Chicken has less calories, fat and sodium than KFCs Original Recipe chicken, without sacrificing the great taste of KFC. APPENDIX 2 incarnate social responsibility What does it mean? By Mallen baker First published 8 Jun 2004 One of the most frequently asked questions at this site and probably for all those individuals and organizations dealing with CSR issues is the obvious just what does Corporate Social Responsibility mean anyway?Is it a stalking horse for an anti-corporate schedule? Something which, like original sin, you can never escape? Or what? diverse organizations have framed dif ferent definitions although there is considerable common ground between them. My own definition is thatCSR is about how companies manage the business processes to produce an overall positive impact on society. Take the following model Companies need to answer to dickens aspects of their operations. 1. The quality of their management both in terms of people and processes (the inner cockroach). 2.The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the surround and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly pore as well as past financial performance on quality of management as an indicator of likely future performance.Ot her definitions The gentleman Business Council for Sustainable Development in its publication Making Good Business Senseby Lord Holme and Richard Watts, used the following definition. Corporate Social Responsibility is the continuing commitment by business to brook ethically and make to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large The same report gave some tell apart of the different perceptions of what this should mean from a number of different societies across the world.Definitions as different asCSR is about capacity building for sustainable livelihoods. It reckon cultural differences and finds the business opportunities in building the skills of employees, the community and the governmentfrom Ghana, through toCSR is about business giving back to societyfrom the Philippines. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic mode l. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to gentle causes.It is seen as tainting the act for the company to receive any benefit from the giving. The European model is much more focused on operating the shopping mall business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because 1. Social responsibility becomes an integral part of the wealth creation process which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. 2.When times get hard, there is the inducement to practice CSR more and better if it is a philanthropic exercise which is fringy to the main business, it will always be the first thing to go when push comes to shove. But as with any process based on the collective activities of communities of human beings (as companies are) there is no one size fits all. In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core out business issues.For instance, the CSR definition used by Business for Social Responsibility is run a business in a manner that meets or exceeds the ethical, legal, technical and public expectations that society has of business. On the other hand, the European Commission hedges its bets with two definitions wrapped into one A conceit whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. When you review each of these, they loosely agree that the definition now focuses on the impact of how you manage your core business. Some go further than others in prescribing how far companies go beyond managing their own impact into the terrain of acting specifically outside of that focus to make a contribution to the achievement of broader societal goals. It is a key difference, when many business leaders feel that their companies are ill equipped to tail broader societal goals, and activists argue that companies have no democratic legitimacy to take such roles. That particular debate will continue.LIST OF REFERENCES Book Crane, A. and Matten, D. 2007,Business Ethics Managing Corporate Citizenship and sustainability in the age of globalization, 2nd Edition, Oxford University Press Inc. , New York, accessed on fifteenth celestial latitude 2009, available. Book Frederick R. E. , A Companion To Business Ethics Wiley-Blackwell, August 9 2002, accessed on 15th December 2009, available. Book J. Brooks, L. & Dunn, P. 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