New Era University

Integrated School
Senior High School
No. 9 Central Avenue New Era, Quezon City

GROUP ACTIVITY NO. 4

GROUP NO. 2

SUBMITTED BY:
Leader: Payao, Sandrina Joy

MEMBERS:
Gacias, Tricia
Motoki, Makiko
Melarion, Cheney
Salvador, Khriza Joy
Tejor, Jessel Mae

SECTION: 12 ABM 3
  Gather with your group. What are some examples of unethical business
behavior exemplified in the movie The Founder. What are your bases of
saying that it is unethical business behavior?

 In the movie, Ray Kroc represents himself as the creator of McDonald's, but
the truth is all of his ideas came from Maurice "Mac" and Richard "Dick"
McDonald. The McDonald's brothers are the ones who created the said
restaurant, and he is merely franchising it. It is a part of unethical business
practices as it is taking credit for others' hard work. By assuming that he does
someone else's work, he also denies the individual's input for a job that they
have done. Also, there are times that he violates the company's practices. As the
brothers want two pickles for their burgers, he put three. Plus, the patties are
overcooked, which discards the rules of serving the McDonald's burger with
quality.

 In the movie The Founder, Ray Kroc showed some unethical behavior
towards McDonald's. At first, he wants to put in a basement and a furnace
immediately but the two brothers declined it and they are waiting for the
approval of their architect. Second, he was changing McDonald's through some
ingredients to reduce the expenses of the fast-food without the approval of the
three owners. Third, Ray Kroc ignored the contract with Mac and Dick, and
said, "Contracts are like hearts, they're made to be broken". Ray Kroc is an
ambitious man in the world of business however despite his persistence,
intelligence, innovation, and success, for me, he was just an old greedy man.
That is why ethical behavior is important to avoid these scenarios and let us be
accountable, fair, and transparent.

 The unethical issues Ray Kroc did to the brothers are bribery. When the
brothers found out that Ray Kroc owned their business they've planned to sue
him but what Ray Kroc did is convinced them and will paid them big money to
compensate and paid for the brand. After the brothers agreed because they
didn't want bigger issues they still continued operating the original
McDonald’s, but because Ray Kroc is the new owner of the brand McDonald’s
it is illegal to pirate the original fast food because they have the same brand.
And that money that Ray Kroc give is not enough to really compensate the
owning of their brand.
 The unethical issue within the film The Founder is that the issue involving
managing the running of the business arose between the McDonald brothers
and Kroc, as Kroc devised an ingenious formula for leasing the property to
outside the parameters of the franchise agreement. When the McDonald
brothers objected to this, Kroc used his greater wealth - a financial leap made
possible only by his connection and devotion to the McDonald brothers
’successful business to persecute the siblings threatened litigation that they
could not afford. The leasing formula quickly offered Kroc more money than
the McDonald’s siblings, and his dominance became so great that most
franchisees assumed he was the founder of McDonald’s.

 The unethical issue in the film the founder is that when he decided to break
his deal with the original McDonald's owners, recognizing that he had deeper
pockets and could beat them in court if necessary. What was perhaps more
concerning was his blatant misrepresentation of the original developers after he
purchased the company. At the eleventh hour, at the closing table, he changed
the conditions on the dealers and technically "lied." Because he has no
intention of ever sharing a share of the company's earnings with the two
brothers, despite his promise. He then made a "handshake" agreement with the
brothers and telling them to believe him and trust that he would keep his
promise.