ASSIGNMENT

BUSINESS ETHICS (30%)

NAME: ADIT ROBINSON

IC NO:
CENTRE:

1.0 Introduction to Common Ethical Problems

Common ethical problems refer to challenges and moral considerations that are often encountered in
human daily life. It involves various situations where we have to make moral decisions, either individually
or in relationships with others. Common ethical problems can include issues such as honesty, integrity,
fairness, decency, and social responsibility.
For example, in a situation where a person is faced with a conflict of interest, he must make a moral
decision about how to deal with the situation. Similarly, in situations where a person has the choice to
help others or fulfill his own needs, he must make a moral decision about what is more important.
Common ethical problems also involve actions that may affect others or the environment, and what
should be done to ensure that our actions do not cause harm. It involves critical thinking and reflection
on the values and norms we adhere to, and how we want to lead our lives morally. Therefore,
understanding common ethical problems is important for everyone to help them make moral decisions
based on correct values and ethics.

2.0 Summarize the main findings:

2.1 Common Ethical Problems that can be found in the KFC fast food restaurant business
Here are FIVE (5) findings of ethical issues that can be identified as occurring in the business of fast
food restaurants such as KFC along with examples:

Pressure to increase profit and sales target: KFC fast food restaurant business is required to earn higher
profit from their business. This profit pressure can cause them to violate ethical standards and save
production costs by using cheap and low-quality materials or taking shortcuts in the production process.
KFC is a company that operates in a highly competitive business environment. Therefore, there is great
pressure to achieve the set sales targets. This pressure can cause staff at KFC restaurants to have a
tendency to violate business ethics by making unethical decisions or performing inappropriate actions to
achieve set sales targets. For example, they may take shortcuts by deceiving customers by giving
smaller or lower quality chicken portions to maintain profits. For example, KFC has been embroiled in
controversy regarding the hygiene and health of their food. In 2005, a study by the United States
Consumer Education and Protection Officer found that most of the KFC outlets they inspected were
unsanitary and disgusting. KFC has also been accused of using chickens that are raised improperly and
given excessive antibiotics to increase productivity. Ultimately, the main goal of trading is to make a
profit. Therefore, in fast food restaurants like KFC, there is pressure to increase sales and profits at any
cost. This can trigger ethical violations such as reducing the quality of food or hiring low-paid workers.
Lack of monitoring and accountability: KFC has multiple branches around the world, which makes it
difficult to monitor their trading practices. This lack of oversight can provide opportunities for ethical and
legal violations in their trade. KFC may not have adequate monitoring and accountability systems to
monitor ethical activities across its chain of restaurants. This lack of monitoring can cause irresponsible
staff to commit immoral or unethical actions without management realizing it. For example, irresponsible
staff may not adhere to established food safety standards, which may lead to the spread of disease or
serious health problems.
Lack of business ethics training: KFC restaurants may not provide adequate training in business ethics
to their staff. This can lead to staff not knowing how to manage potential ethical situations in the
workplace. For example, staff may not understand the importance of providing accurate and honest
information to customers about the products offered.
Competition with other restaurants: In a highly competitive market such as fast food restaurants, KFC
has to compete with many competitors to attract customers. This can lead to pressure to ignore ethics in
an effort to attract customers, such as offering extremely low prices or promoting unhealthy foods.
Employment Issues: Fast food restaurants are often considered unstable workplaces and low wages.
This can lead to ethical issues such as labor abuse or discriminatory actions against employees.
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 Pressure to meet customer demand: KFC's fast food restaurant business is faced with increasing
customer demand in terms of quality and price. This pressure may cause them to violate ethics and
reduce production costs to meet customer demand. For example, KFC has faced strong criticism from
customers in several countries for using palm oil produced instead of rainforest logging, which destroys
the environment and wildlife habitat. Fast food restaurants like KFC are often under pressure to serve
customers quickly and efficiently.
In order to deal with ethical issues in the business of fast food restaurants like KFC, companies must
take this aspect seriously and act according to high ethical standards in their business.

2.2 Causes and reasons why common ethical problems occur in the KFC fast food restaurant business
Among the causes and reasons for common ethical problems in the KFC fast food restaurant business
may be due to several factors including:

Pressure to increase profits and sales goals: Common ethical problems such as pressure to increase
profits and sales targets in KFC fast food restaurants can occur when restaurant owners or management
overemphasize financial results and abdicate their social responsibilities. This can cause them to take
less moral decisions such as restricting the quality of food or reducing the cost of quality raw materials.
This pressure can lead to unethical business practices, such as shortening food preparation time or
using cheaper but lower quality ingredients.
Example: KFC has been accused by some animal rights activists for using inhumanely raised chickens
and providing food that contains ingredients that are harmful to the health of the chickens.
Lack of monitoring and accountability: If the company's management does not monitor and take
appropriate action, then employees may be motivated to engage in unethical actions. This can include
breaches of health and safety standards, sexual harassment or consumer fraud. This is because if there
is no effective monitoring or problem solving system, restaurant employees may have the freedom to act
unethically. For example, if KFC employees are not properly supervised, they may take the opportunity
to exploit customers by cheating or deceiving them.
Lack of business ethics training: Employees who are not properly trained in business ethics may engage
in unethical actions without realizing the consequences of their actions. If employees do not understand
important ethical values in business such as integrity, trust and social responsibility, they may make
unethical decisions. For example, if a KFC employee does not understand the value of integrity, they
may take the opportunity to steal from the restaurant or engage in other immoral activities.
Competition with other restaurants: Intense competition with other fast food restaurants can encourage
companies to engage in unethical business practices to win the competition. If KFC restaurants feel
pressured by competition, they may take unethical actions to overcome the situation. For example, if
KFC feels pressured by competition from other fast food restaurants, they may make unethical decisions
such as restricting food quality or reducing the cost of quality raw materials.
Job Issues and Pressure to meet customer demand in fast food restaurants: Employees may face
pressure to work quickly and efficiently, which can lead to unethical actions such as cutting the road or
neglecting their own health and safety. If KFC employees feel pressured to meet high customer demand,
they may take unethical actions to overcome the situation. For example, if a KFC employee feels
pressured to fill orders quickly, they may neglect food hygiene or safety.

2.3 Suggested improvements to each common ethical problem encountered in the KFC fast food restaurant
business
Fast food restaurant businesses like KFC have many common ethical problems in meeting customer
requests quickly and efficiently. However, there are some ethical problems that can arise as a result of
this pressure. Here are some suggestions for improvement that can help overcome ethical problems in
this situation:

Pressure to increase profits and sales targets: KFC should take a socially and ethically responsible
approach in setting sales targets and increasing their profits. They need to ensure that sales and profit
targets do not neglect other aspects such as employee welfare, safety and the quality of the products
sold. Restaurant owners need to recognize that customer satisfaction and long-term success are more
important than immediate short-term profits.
Lack of monitoring and accountability: KFC needs to take steps to improve monitoring and accountability
in the management of their restaurants. They need to ensure that the work is carried out professionally

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 and ethically. KFC needs to provide training and guidance to their staff on business ethics, and have
clear procedures to deal with breaches of business ethics.
Lack of business ethics training: KFC restaurant owners should ensure that their staff receive adequate
business ethics training. This includes providing them with knowledge of the values and principles of
business ethics, introducing them to proper etiquette in working with customers and colleagues, and
ensuring that they understand their rights and responsibilities as employees.
Competition with other restaurants: KFC should take a cooperative approach in competing with other
restaurants. They should recognize that healthy and fair competition is essential for long-term success in
the fast food business. KFC should cooperate with other restaurants to promote better quality fast food
and provide better offerings for their customers.
Employment Issues: KFC needs to ensure that their employees are treated fairly and equitably. They
need to provide a decent salary and good working conditions. KFC also needs to ensure that they
comply with labor laws and meet business ethics standards in hiring employees.
Pressure to meet customer demand:
Poor food quality can occur when employees rush to meet customer demands. Therefore, KFC should
ensure that the food produced meets strict quality standards and conduct regular quality inspections to
ensure that the food produced meets the set standards.

3.0 Conclusion

In conclusion, ethical problems in the KFC fast food restaurant business can occur due to various
factors, including pressure to achieve sales targets, lack of business ethics training, following profits
without regard to business ethics.
First, it is important to identify specific ethical issues in KFC restaurants. Is this related to the treatment
of animals in their food supply chain? Or is it more to do with the wages and working conditions of their
staff? By identifying specific ethical issues, we can focus our efforts on solving those issues.
Second, as consumers, we can choose to support restaurants that practice good ethics in their business.
For example, we can choose restaurants that use organic ingredients or source meat from farms that
follow socially and environmentally responsible practices.
Third, we can ask restaurants or brands questions to request more information about their ethical
practices. We can ask questions about the origin of their ingredients, their food processing practices or
their policies on the environment and human rights.
Finally, it is important to remember that as consumers, we have the power to influence the food industry.
By making smart choices and questioning unethical practices, we can drive positive change in the food
industry as a whole.

4.0 References

Ayee J (2017) Ethics in the Public Service. A paper delivered at the Second Pan – African Conference of
the Ministers of Civil Service, Rabat, Morocco

David KWS (2016) Ethics, Accountability, Transparency, Integrity and Professionalism in the Public
Service: The Case of Uganda. Enhancing Professionalization Of Human Resource
Management In The Public Service In Africa, Uganda.

Hubungan Antara Moral, Etika dan Undang-undang. (n.d.) [Online] Available :

http://www.docstoc.com/docs/4075830/hubungkait-antara-moral-etika-dan-undang-undang
[2013, February 3]

Megat Ayop, M.A. dan Abd. Halim, A. (2016). Kepentingan Budaya Integriti dan Etika Kerja dalam
Organisasi di Malaysia: Suatu Tinjauan Umum. GEOGRAFIA Online: Malaysian Journal of
Society and Space, 12(9): 138-149.

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UTM ISES (2021). Pembudayaan Nilai Teras UTM: Integrity, Synergy, Excellence & Sustainability
(ISES). Capaian: https://www.utm.my/ises/

UTM TALENT (2021). Program/ Kursus/ Aktiviti Berasaskan Nilai Teras UTM (ISES). Capaian:
https://registrar.utm.my/utmttc/pembangunan-latihan/latihan/ises/

Wahid, O. (2021). Lahirkan Modal Insan, Ilmuwan Lebih Sempurna. Ditulis oleh Mohamad Farid Noh.
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Kentucky Fried Chicken (KFC) Perubahan Amalan Pemakanan Belia: Satu Kajian Kes Tentang Amalan
Etika KFC (2020)

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