Professional Documents
Culture Documents
LP Ethics
LP Ethics
LP Ethics
Lesson Proper:
A. Discussion
Classical Philosophy used in Business
i. Socrates
ii. Plato
iii. Aristotle
iv. Confucius
v. Plutarch
vi. Epictetus
vii. Musonius
viii. Epicurus
Belief System
i. What are Belief System
ii. Animism
iii. Shinto
iv. Hinduism
v. Judaism
vi. Buddhism
vii. Confucianism
viii. Taoism
ix. Christianity
x. Islam
Philippine Women’s University
Taft Avenue, Manila
JOSE ABAD SANTOS MEMORIAL SCHOOL
Senior High School
Filipino Value Systems in Business
i. Bahala na
ii. Utang na Loob
iii. Ningas Cogon
iv. Padrino system
v. Manana Habit
vi. Amor Propio/ self- respect
vii. Delicadeza
viii. Hiya
ix. Pakikisama/ pakikipag kapwa –tao
x. Family orientation
xi. Hospitality
xii. Joy and Humor
xiii. Flexibility, Adaptability, Creativity
xiv. Faith and Religiosity
xv. Ability to survive
xvi. Hardwork and industry
xvii. Filipino time
After reading the case study the students are asked to answer the following questions:
Philippine Women’s University
Taft Avenue, Manila
JOSE ABAD SANTOS MEMORIAL SCHOOL
Senior High School
i. Is the case Rjat Gapta showed a failure of character? Explain your answer.
ii. According to Aristotle “ The virtue of man also will be the state of character which makes a
man good and which makes him do his own woek well”. How will you relate this to the
story of Rajat Gupta? Discuss.
iii. Do you agree that business schools must provide future financial managers with proper
ethical education for moral decision making? Defend you answer.
SYNTHESIS:
Process Question(s):
Who are the Classical Philosophy used in Business?
What are the different belief system?
What are the Filipino Value Systems in Business?
EVALUATION/CLOSURE:
The case study entitled “The McDonald’s ‘Beef Fries’ Controversy”
The McDonald’s ‘Beef Fries’ Controversy
Source: http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/The%20McDonald%20Beef%20Fries
%20Controversy.htm
In May 2001, a class action lawsuit1 was filed against the world's largest fast-food chain McDonald's, in
Seattle, US. The lawsuit alleged that the company had, for over a decade, duped vegetarian customers into eating
French fries2 that contained beef extracts.The lawsuit followed a spate of media reports detailing how the French
fries served at McDonald's were falsely promoted as being '100% vegetarian.'
Although McDonald's initially declined to comment on the issue, the company issued a 'conditional apology,'
admitting to using beef flavoring in the fries. The furore over the matter seemed to be settling down, when to
McDonald's horror, some of its restaurants in India were vandalized. Activists of Hindu fundamentalist groups - the
Shiv Sena, the Vishwa Hindu Parishad (VHP) and the Bajrang Dal, staged a demonstration in front of the McDonald's
head office in Delhi protesting the alleged use of beef flavouring. They submitted a memorandum to the Prime
Minister, demanding the closure of all McDonald's outlets in the country.
Activists also staged protests in front of McDonald's restaurants in south Mumbai and Thane. Mobs
ransacked the outlet at Thane, broke the glass panes and smeared the McDonald's mascot Ronald with cow dung.
About 30 people were arrested and later let off on bail. Company officials estimated the loss to the outlet at
Rs 2 million. Officials at McDonald's India quickly announced that the vegetarian products served in India did not
have any non-vegetarian content.
However despite this reassurance, the anti McDonald’s were refused to die down. Meanwhile, more cases
were being filed againts McDonald’s this time in California, US and Canada. It seemed certain that the company
would have to shell out millions of dollars to settle the class action lawsuit representing the 1 million US based
Hindus and 15 million other vegetarians.
McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in
California, US in the year 1937. The business, which was generating $ 200,000 per annum in the 1940s, got a further
boost with the emergence of a revolutionary new concept called 'self-service.' The brothers designed their kitchen for
mass production with assembly line procedures. Prices were kept low.
Speed, service and cleanliness became the critical success factors of the business. By mid-1950s, the
restaurant's revenues reached $ 350,000. As word of their success spread, franchisees started showing interest.
However, the franchising system failed because the McDonald brothers observed very transparent business
practices. As a consequence, they encouraged imitators who copied their business practices and emerged as
competitors. The franchisees also did not maintain the same standards for cleanliness, customer service and product
uniformity. At this point, Ray Kroc (Kroc), an exclusive distributor for milkshake machines expressed interest in the
McDonald brothers' business. Kroc finalized a deal with the McDonald brothers in 1954.
Philippine Women’s University
Taft Avenue, Manila
JOSE ABAD SANTOS MEMORIAL SCHOOL
Senior High School
He established a franchising company, the McDonalds System Inc. and appointed franchisees. In 1961, he
bought out the McDonald brothers’ share for $ 2.7 million, and changed the name of the company the McDonald’s
Corporation. In 1965, McDonald’s wemt public.
By the end of the 1960s, Kric had established over 400 franchising outlets. McDonald’s began leasing/
buying potential store sites and then subleased them to franchisees initially at a 20% markup and later at a 40%
markup. To execute this, Kroc set up the Franchise Realty Corporation . the real estate operations improved
McDonald’s profitability. By the end of the 1970s, McDonald’s had over 5000 restaurants with sales exceeding $3
billion. However, in the early 1990s, McDonald’s was facing problems due to changing customer preferences and
increasing competition. Customers were becoming increasingly health conscious and they wanted to avoid red meat
and fried food. They also preferred to eat other fast food joints that offered discounts.
The courtroom battle had entered the 11th month when McDonald's announced that it would issue a new
apology and pay $ 10 million to vegetarians and religious groups in a proposed settlement of all the lawsuits in March
2002.
After reading the case study the students are asked to answer the following questions:
i. what particular conflict in the belief system did McDonald violate? Explain your answer.
ii. How did the Hindu fundamentalist group react? Enumerate them.
iii. Do you agree with the actions take by McDonald just to win the battle over the Hindu
Belief?
ASSIGNMENT:
A case study will be given to the students to answer at home. The case study entitled
“Nestle Philippines and Forefront IT Trading Corp.”
Teacher’s Note:
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