HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES

- INFORMATION TECHNOLOGY
DEPARTMENT OF INTERNATIONAL BUSINESS
ADMINISTRATION
-------***-------

REPORT

Major: Business Ethic

<TOPIC>

Student’s name: Cao Minh Tiến

Trần Thị Cẩm Quỳnh
Trần Minh Nhựt
ID Number: 19DH480850
19DH120613
18DH490699
Class: D64
Course: K25

HCMC, June 11, 2022

Table of Contents
1. Introduction.................................................................................................................. 1

1.1 Ethical dilemmas in business.................................................................................1

1.2 Causes of ethical dilemmas.....................................................................................1

2. Resolution principles....................................................................................................2

2.1 Ends based...............................................................................................................2

Rules based.................................................................................................................... 3

2.3 Golden rules............................................................................................................4

3. Kentucky Fried Chicken’s ethical dilemma case study.............................................5

3.1 Summary of case.................................................................................................5

3.2 KFC’s ethical dilemmas.....................................................................................6

3.3 Application of three principles...........................................................................7

3.3.1 Ends based....................................................................................................7

3.3.2 Rules based...................................................................................................8

3.3.3 Golden Rules.....................................................................................................8

3.4 Recommended resolution.....................................................................................8

CONCLUSION:...............................................................................................................9

REFERENCE................................................................................................................. 10
1. Introduction

1.1 Ethical dilemmas in business

Ethical dilemmas are also known in colloquial language as moral dilemmas. This is
because ethics is the philosophical discipline responsible for systematizing the concepts
of bad and good, logically determining what is bad action and what is good action.
Ethics, on the other hand, are formed by the norms that govern the behavior of
individuals in a particular community.

If business ethics is about the application of ethical values is the expression of those
values through policies and programs involving a range of stakeholders. The Institute of
Business Ethics (IBE) believes that an organization cannot act responsibly without an
inherent and embedded culture based on ethical values such as trust, openness, respect,
and integrity. In general, an ethical dilemma is a complex situation faced by a business in
which a decision must be made about the appropriate action to take.

1.2 Causes of ethical dilemmas

The dilemma can arise from a conflict between the right or wrong of actions and the good
or bad of the consequences of the actions. In other words, doing what is morally right is
likely to lead to a bad outcome, and doing what is morally wrong is likely to lead to
better outcomes. From another angle, an ethical dilemma is a conflict between at least
two ethical principles that can both lead to an equally good or bad outcome. In such a
situation, following one principle leads to a violation of the other, while both are equally
valid. We can be satisfied is right, regardless of the damage occurred; or we can aim for
the best results, regardless of what went wrong must be committed.

Ethical dilemmas make individuals think about their duties, obligations, and
responsibilities. Dilemmas can arise from conflicts of personal, organizational, and
professional values and can be overly complex and difficult to deal with. Several
frameworks have been developed to assist in resolving ethical dilemmas. Once an action
has been taken, it is necessary to think about the consequences it has caused. In this way,
if a comparable situation arises in the future, better, easier decisions can be made, and
this workaround evolves to consider making over all decisions. From that, three basic
principles in solving ethical dilemma arise, which are rules-based, ends-based and golden
rules explained in the next part.

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2. Resolution principles

2.1 Ends based

The utilitarian approach or the ends-based approach says that the actions are ethically
right or wrong depending on their effects. It argues that the most ethical choice is the one
that does the greatest good for the greatest number. For instance, if a doctor is unwell and
requires a new kidney, you can opt to give up your life to donate your kidney to the
doctor so that she might become healthy and save thousands of lives. In this sense, you
have conducted a morally justifiable act by sacrificing your own life to save the lives of
thousands of people.

Some advantages and disadvantages are followed:

 Advantages

 Focus On Happiness

The popularity of utilitarianism can be attributed to the fact that it places

happiness at the center of our lives. When we look at today's societies
throughout the world, it is apparent that people do not feel this way. When
people have greater financial resources, they are often happy. Because we
would be looking at the effects rather than the method for the results, we may
lower unemployment rates and raise family incomes.

 Focus On the Democratic Process for Forward Movement

A 50 percent plus one votes majority is required in a typical democracy for

legislation to pass or for a representative to be elected. We utilize this structure
because it is seen to be the most equitable way to reconcile everyone's different
life goals.

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  Disadvantages

 Ignore Other Element Besides Happiness

Every day, we make decisions based on how we feel in the present rather than
how we feel eventually. While utilitarianism has obvious advantages, it also
overlooks many of our life experiences.

 Be Unpredictable

Making ethical decisions based on what could or might not happen tomorrow is
inappropriate. To establish what method, we may take to create a better society,
we must focus on what is happening right now. If we simply consider potential,
we may not be able to do anything.

Rules based

This approach rests on the belief that rules exist for a purpose and must be followed. We
stick to the rules and principles and do not concern about the result. Business rules might
include, for example, a decision-making approval framework for invoice processing,
where only particular management can sign off on bills reaching a specified amount. It is
important to weigh the advantages and disadvantages of this principle to determine
whether it is an effective means of resolving problems.

 Advantages

 Provide Legal Cover

A written copy of your workplace policy is important to ensure that your rules
and regulations are followed by your staff. This helps protect you from liability
if someone violates the policy in a manner that could lead to legal action. If
your rules are clear and simple, it can limit your liability for any breaches.

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  Formalize Business Operations

The logical framework created by rules makes it possible for management staff to
avoid having to concern itself with situational ethics or decisions. Instead, they are
guided by the rules established, which makes it easier for them to make decisions
that keep the company functioning properly.

 Disadvantages

 Create Rigid Structure

The rigid nature of business rules can make it difficult to implement

changes. When trying to introduce something new within this framework, you
may discover that the rules in place prevent you from changing things to the
degree that you would like. It also limits your ability to make quick decisions or to
change your business strategy.

 Financial Investment

You will need to pay for research, writing, and legal consultation. The financial
investment is required to establish the rules at your company. One of the most vital
aspects of rules creation is ensuring compliance with all the federal, state, and local laws
related to employee privacy, safety, and health.

2.3 Golden rules

The golden rule is a way of life concept that states that others should be treated fairly and
with respect. People are good to each other because they want to be treated the same way
they want to be treated.

Advantages

 Build reputation

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 Do not step on others to climb the corporate ladder and treat your team,
customers, vendors, and competitors fairly. By doing so, it will help to
preserve your reputation and pay off significantly in the long run. Ensuring that
you follow the Golden Rules in your interactions with others is a simple way to
keep your reputation intact.

 Lead to a satisfied workforce

A satisfied workforce will be motivated to provide great service to customers, and

they will be more loyal to the company as well. One of the best ways to assemble
a team that is driven and motivated is by treating others like people and putting
yourself in their place occasionally.

Disadvantages:

 Ignore The Established Rules

Making judgments based on golden rules may be subjective and have a

negative impact on both individuals and organizations. For example, if a ship-
owner and shipper have a long-term partnership and there is an unspoken
agreement that the shipper can pay after the ship owner has let the cargo land
for import, this is illegal.

 Has a one-way effect

Because we cannot make others treat us the way we want them to, the victim may
be slip into a passive position if no precautions are done ahead of time. Like the
previous case, the ship owner cannot compel the shipper to pay as his promises if
there are no binding agreements between them, resulting in the ship's loss.

3. Kentucky Fried Chicken’s ethical dilemma case study

3.1 Summary of case

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Kentucky Fried Chicken (KFC) is a fast-food restaurant franchise specializing in fried
chicken with headquarters in the United States. McDonald's, one of the addressing
company's competitors, said in 2015 that it would no longer sell chickens produced with
human antibiotics, which are used to treat human patients and should not be utilized in
the production of food or in harsh chicken farming. KFC shares the same worry.

KFC chicken suppliers have crammed their chicken into overcrowded cages to save
money and given the hens medicines to help them grow faster. Second, KFC has been
caught utilizing oil containing trans fatty acids and monosodium glutamate (MSG), as it
relates to risk of getting obese or having heart disease. Finally, when it comes to the
problem of advertising deception, KFC is well-known for spreading false information
about the health risks associated with fast food in its marketing. The challenge for the
company was whether to promote or ignore the trend, and both alternatives were
potentially immoral and damaging.

3.2 KFC’s ethical dilemmas

These become dilemmas as they create conflicts between:

 Truth versus Loyalty: They will initially bring these facts to light and take prompt
action to resolve the situation, but the ramifications of a weakened company's image

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 and shareholder values will occur at the same time. Alternatively, KFC will conceal it
to maintain a competitive advantage and mislead their consumers.

 Short term versus long term: In the short term, they can remain unresponsive to the
consumer and wait for the wave to pass but a long-term approach is essential to avert
such disasters in the future. On the other side, KFC will give input and resolve the
issue as quickly as possible to restore consumer trust.

 Justice versus mercy: In terms of justice, KFC should strictly follow food regulations
to safeguard consumers' health; if a problem emerges that is not in compliance with the
standards, it will be quickly remedied. They must, however, consider the shareholders,
preserve the business's stability, and enhance earnings while addressing the demands
of consumers in the event of mercy.

 Individual versus community: If KFC makes the same amount of money as it has
been done in the past, it will be considered a success. KFC is under increasing
pressure from environmental organizations and NGOs, as well as the medical
community, to act and resolve the issue.

3.3 Application of three principles

3.3.1 Ends based

KFC management operates on the utilitarian paradigm because the firm believes it is
doing the greater good for the most people. This implies that it does not have the
authority to decide what is good or to consider justice. KFC suppliers participates in
chicken maltreatment by keeping them in terrible circumstances. The main motivation is
to generate money for catering to the increased demand because of deceptive advertising.
For example, the corporation is eager to promote its fried chicken as tasty and nutritious,
but it does not consider the long-term effects of these fast foods on their customers. To be
fair, if the corporation is going to advertise how good or healthy the meal is to its
customers, it should include means of coping with the detrimental impacts of these items.

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 3.3.2 Rules based

The Food and Drug Administration (FDA) has designated MSG as a food component that is
regarded as safe, but its use remains contentious, posing an ethical issue to KFC. KFC will
regain confidence if they cut off supplies to unqualified farms and restaurants that fail to
follow livestock rights regulations, as well as restaurants that have inappropriate oil levels to
the company's harm. Even if it takes time for customers to rejoin the broken supply chain,
which is regulated by rules and tougher controls, they will notice that the firm is concerned
about their interests and health. All the processes in the supply chain that lead to a completed
consumer product.

3.3.3 Golden Rules

In the case of KFC's suppliers, they may still be accused of endangering people's health by
using antibiotics. If KFC refuses to buy from them, the suppliers will certainly be obliged to
cease using antibiotics in their manufacturing. This allowed KFC to avoid negative
consequences and additional burdens on its operation without seriously harming its
reputation. In terms of the advocates of ending the practice, they have succeeded in advancing
their cause, and KFC's response shown that they can continue to modify food industry norms.
Customers may feel safer knowing that KFC follows the antibiotic-free chicken policy.

3.4 Recommended resolution

When it comes to ethical dilemma, there are no generally valid answers (Crane and Matten
87). KFC must combine the three factors outlined above to make a sensible judgment that
allows it to strike a balance between safeguarding its operations and addressing consumer
requirements.

First, by combining the rules-based and end-based approaches, the firm was able to maintain
its supplier relationships while still meeting FDA standards, responding to anti-antibiotic
accusations, and assuring consumers that they need not be concerned about antibiotic
resistance. KFC must treat the meat in a specified way or take additional steps to ensure that
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the finished product does not contain medically essential antibiotics. They should evaluate
and train the providers of associated materials. If the practice of utilizing antibiotics persists,
KFC should seek out a sound business partner and let the government agency to do a re-
inspection.

If the golden principles and the rules-based are mixed, they must recognize that the
corporation has a responsibility not just to current consumers but also to future generations.
Respect for others, honest, and protection against damage should all be part of the scope of
responsibility. The company's management should be accountable for sustaining the healthy
and nutritious meals that future generations will require to prosper. As a result, KFC might
open a dietician department, make nutritious and healthful food, as well as a nutritional study
and a food inspection report for the product. They might ask the food inspector to do a food
inspection to put the public's mind at ease.

Finally, when KFC contributes to societal good, the linkage between ends-based and golden
rules occurs. For instance, when KFC participates in public benefit activities, the media,
newspapers, and the internet will cover the story. People will be aware of the finest practices,
and this will leave a positive impression on the public. The outcome is that company’s brand
awareness and interests have increased.

The KFC Company must be able to assure that the items they serve are nutritious and
nutritional to acquire consumer confidence, loyalty, and respect, as well as safeguard and
enhance its corporate image.

CONCLUSION:

In today's business environment, companies must consider not only the interests of their
shareholders, but also the interests of society. Rather than reacting passively to the
implementation of corporate social responsibility, firms must consider social concerns in
a strategic perspective in order to gain a competitive edge in the future, benefiting both
shareholders and society. As a result, this research will assist firms in approaching
corporate social responsibility as a strategic issue from six perspectives: mission,
strategic issues, markets, consumer demands, resources, and competitive advantage.
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From here, the company will share and employ resources to benefit society while also
assisting enterprises in developing steadily. For Vietnam, corporate social responsibility
is a recent topic. In recent years, however, in the face of environmental disasters and bad
repercussions, as well as social issues generated by enterprises, the subject of social
responsibility has become more pressing. In Vietnam, corporate social responsibility is
completely implemented in accordance with the goals of the sustainable development
plan. It takes a high-level job set to fulfill corporate social responsibility in Vietnam,
including social responsibility propaganda and education, as well as the completion of the
legislative framework to put it in place.

The conduct of investing in the future is referred to as business ethics. Ethics in business
is not merely a catchphrase to capture customers' hearts. They are also a means of
maximizing income and bolstering the brand. When collaborating with partners,
customers, government agencies, the press, etc., ethics are established and articulated.
Customers will flock to businesses that have a good reputation. The market has always
promoted ethics based on arousing the underlying beauty in everyone. In business, ethics
is the bedrock of all values, an essential component of all actions, a guideline, and a
critical role in establishing a company's reputation. As a result, each firm must establish a
clear ethical standard system and continually innovate and perfect it to align with the
implementation of goals, strategies, and orientations for planning and business
organization to assure the company's success and long-term growth.

REFERENCE

https://smallbusiness.chron.com/advantages-following-organizational-rules-56878.html

https://www.entrepreneur.com/article/281387

https://www.theclassroom.com/three-categories-ethical-theories-8373890.html#:~:text=End%2Dbased
%20ethics%20require%20a,and%20save%20thousands%20of%20lives.

https://www.intelligentautomation.network/intelligent-automation-ia-rpa/articles/rules-based-
automation-explained

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