mcdonalds unethical case study

McDonald’s Ethical Issues: Examples of Unethical Marketing Practices

Unethical marketing practices are a significant issue affecting firms’ operations. The fast-food industry is one of the most affected sectors of the economy when it comes to unethical marketing practices. A case in point is when a company promotes a product without indicating its implications on the consumer’s health. Ethical standards in business focus on ensuring that the organization attains its core objectives in a manner that adheres to the laid down requirements.

The process of developing a marketing plan may tempt the business entity to violate the ethical principles put in place. Therefore, the case study of McDonald’s ethical issues is an outstanding opportunity to learn about the violations of a big corporation. There is a need to examine some ethical practices businesses must comply with. Every industry has its unique set of guidelines to which the players are expected to adhere. However, several standards apply to all companies operating in the modern global market. In this study, the author analyzed the case of unethical practices of McDonald’s UAE.

Background Information

• Problem & Thesis

Objectives of the Study

Research questions, assumptions, limitations, and delimitations.

• Marketing Ethics

Chapter I Summary

Marketing in the uae, suitable marketing ethics, common ethical issues in marketing, the domain of marketing ethics, theoretical frameworks of ethics in marketing, emergent ethical issues in marketing, chapter ii summary, demographics.

• Familiarity with ethical standards

Ethical Practices

Reasons for selecting mcdonald’s, common unethical practices, application of ethical standards, opinion of consumers regarding ethical practices in marketing, motivation for unethical practices, chapter iii summary, recommendations and conclusion.

In marketing, ethical considerations play a vital role in advancing the objectives of an organisation. In the world of business, ethics is all about developing trust between the various parties involved in trade. According to Murphy and Laczniak (2012), a number of ethical practices are evident in the process of carrying out business activities. They include, among others, honesty and integrity on the part of the producer. Unfortunately, many organisations flout the ethical principles put in place. Ethical violations have a devastating effect on both the business concerned and the consumer.

The current study intends to shed more light on this issue of ethical business practices in the contemporary market. It is a case study of McDonalds and how the international company disregards the ethical considerations of business in the fast food industry. The discussions in this paper focus on the ethical issues that emerge in the process of implementing a marketing plan. In this regard, the study uses the McDonalds’ chain of stores in the United Arab Emirates (UAE). Hundekar (2010) argues that competition among companies is one of the factors that lead to the violation of ethical standards. The organisations carry out such violations in a bid to endear themselves to the consumer.

One of the primary ethical practices relate to the need for professional conduct. According to Sirgy and Lee (2008), businesses are expected to market their products in a professional manner. Such an undertaking should be reflected in the interactions between a business and its stakeholders. The parties referred to in this case include consumers, competitors, and the regulatory authorities put in place. Such an ethical practice is said to occur when a company is non-discriminatory and portrays its products in an honest manner to the consumers. On their part, Smith (2012) suggests that ethical standards should be factored in when planning on how to deal with the competitive nature of a business environment. To this end, the ethical practices include the accurate representation of a product in the market. Other common codes of conduct fall within the category of pricing and labelling of the products.

In spite of the fact that the ethical practices are obvious and clear, some business organisations still flout them. As already mentioned, the procedures are often abused by companies during the development of a marketing plan. Murphy and Laczniak (2012) point out that there are many ethical standards violated by contemporary business entities. Four of these codes of conduct are commonly cited in literature and studies conducted in this field. All of them relate to the development of a marketing plan. They touch on pricing, labelling, inaccurate representation of information, and disregard for professionalism.

There are serious ramifications associated with the violation of the laid down ethical guidelines. Hundekar (2010) observes that the most affected party is the consumer. In the case of the fast food industry, companies that misrepresent the health implications of their products put the health of their consumers at risk. It is noted that fast food has serious consequences on the health of the people. In light of this, it is important for food related companies to elaborate on the impacts of their products so that the consumers can make informed choices. Other effects of flouting ethical issues in business relate to the performance of the industry at large. For example, negative publicity associated with a given sector in relation to violation of ethical standards may affect the success of organisations of businesses operating therein.

McDonalds is a good reference point when it comes to the analysis of ethical issues in business. The company has a history of violating codes of conduct in a bid to gain a competitive advantage against its rivals in the fast food market. It is one of the reasons why the current study focuses on McDonalds stores in the UAE. Smith (2012) argues that most companies in the fast food industry tend to hide information relating to the ingredients of their products from the consumers. For instance, there are several allegations made against McDonalds on matters touching on the labelling of its products. In addition, the company has in the past been accused of using sports icons to create the impression that its products are healthy. Such form of unethical conduct jeopardises the health of the consumers.

The current study is developed against this background of business ethics in relation to the various marketing plans that companies develop in efforts to remain competitive in their respective sectors. In the opinion of Sirgy and Lee (2008), competition cannot be wished away in the business environment. However, Sirgy and Lee (2008) point out that it is possible for companies to gain a competitive edge in their industry without having to engage in unethical practices. The current study seeks to develop a framework through which organisations can achieve this objective. The strategies through which entities in the fast food industry can succeed by adhering to the codes of conduct will be discussed.

In the literature review, some insights into the UAE fast food market will be highlighted. For instance, there are various regulations around marketing that are meant to be followed by firms operating in this market. The same is discussed alongside the larger UAE fast food industry. To this end, a comprehensive insight into the fast food industry is outlined. Furthermore, the study intends to use the UAE as a model region to showcase how ethics are violated in today’s global market. In addition, the country is used to show how solutions to this problem can be dealt with in an effective manner.

Problem Statement

The current study is an integral aspect of marketing and, in extension, formulation of a marketing plan. To this end, the researcher makes use of a functional organisation that is associated with rampant unethical practices. McDonalds UAE is selected as an ideal company for the purposes of this study. It will act as a reference point owing to the sheer magnitude of consumers associated with the brand. Sirgy and Lee (2008) suggest that the evaluation of ethical issues in business is effectively done when an analysis is carried out on the market leaders.

Thesis statement

The current study was guided by one thesis statement, which is stated as follows:

Unethical practices reduce the credibility and image of a brand in the fast food industry.

Based on the thesis statement developed for the current study, the problem that will be addressed at McDonald’s is its unethical practices that ought to be addressed to curb the rising food related diseases in the modern society. The World Health Organisation (as cited in Smith 2012) recognises the link between poor diet and illnesses like diabetes and heart failure. An organisation like McDonald’s should not exploit its customers by marketing its products as healthy when this is not true. The current study identifies the said marketing plan that illustrates the company as an entity that relies on false information to gain competitive advantage.

Companies operating in the UAE are subject to Islamic laws used in the country. The same is particularly observed in the food industry with emphasis on Halal branded items. Marinov (2007) points out that promotion of products in the Islamic market should be gender specific. Other issues that should be factored into the marketing process include emphasis on the quality and value of the commodity offered. There are a number of regulations that should be adhered to with respect to entities operating in the food industry in the UAE. The literature review will expound on these issues.

Major objective

The current study is guided by one major objective, which entails relating ethical issues to business operations, specifically in the fast food industry.

Specific objectives

The study has four specific objectives, which support the major one. They include the following:

To establish the ethical standards related to the process of marketing a product

In this regard, the author will analyse literature on ethical practices. According to Murphy and Laczniak (2012), common ethical considerations include reasonable pricing, adhering to professionalism, accurate labelling, and proper representation of information in the market. The current study identifies the ethical standards that relate to the mentioned practices.

To illustrate the common ethical violations committed by businesses in the modern market.

Violations of the ethical requirements of business are common in the food industry. The current study illustrates how businesses can mislead the consumers of their products. Specifically, the research undertaking outlines how McDonald’s misleads its customers through the use of sports icons in its marketing plan. In addition, the study addresses the manner through which McDonald’s conceals vital information from consumers in the labelling of its products.

To outline the effects of non-adherence to ethical standards during marketing.

Whenever businesses fail to adhere to the laid down ethical practices, the stakeholders involved are affected in different ways. According to Hundekar (2010), marketing plans and strategies have a direct impact on the consumer. To this end, the current study establishes the affected parties with respect to unethical business practices. Consequently, the research undertaking outlines the respective effects of unethical business practices to the parties. The same will enable the development of a suitable marketing strategy that respects ethics of business.

To propose ethical marketing plans

McDonalds is used in the current study to outline the numerous unethical practices in the fast food industry around the world. According to Smith (2012), it is possible to achieve competitive advantage in the market without necessarily having to flout the various ethical requirements put in place. To this end, the current study makes recommendations on the necessary measures that industry stakeholders can implement to achieve the objective. Such measures will help to minimise the unethical practices presently being carried out in the fast food sector. The same will illustrate how to make these products suitable to sell in the market without harming the health of the consumers.

Rationale of the Current Study

Studies are often carried out to ascertain or verify the existence of a number of phenomena. In addition, Saunders, Lewis, and Thornhill (2003) recommend the need for research undertakings to provide solutions to the problems identified in a given field. For example, a study can be carried out to explore a challenge facing a particular market segment and the possible solutions. In light of this, the findings made in the current study are expected to be quite beneficial to the marketing sector. It is based on the need to observe ethical issues.

As such, the study provides the phenomenal aspects behind ethical practices in the industry. The findings can be applied in other industries apart from the fast food. They can also be applied in other countries apart from the UAE. Considering the market size served by McDonald’s, the study illustrates how industry players can retain their leadership positions without having to engage in unethical practices (Saunders et al. 2003).

The study is developed with the intention to promote a culture of ethical practices in businesses. Smith (2012) points out that the best way to promote a given culture is to have key industry players adopt the concept. To this end, the food industry will start paying more attention to ethical work practices if a key player like McDonald’s adopts the recommendations proposed. Murphy and Laczniak (2012) argue that most consumers prefer identifying with brands that have integrity. Courtesy of the survey carried out, it is established that organisations can make the most the market which supports ethical practices by heeding to the consumers’ call (Murphy & Laczniak 2012). Consequently, the current study plays a huge role in ensuring that other companies get to appreciate this growing concern from the consumers.

The discussion in this paper carried out in partial fulfilment for the requirement of a degree. To this end, the research might not be conclusive in certain areas. However, Saunders et al. (2003) suggest that the inconclusive nature of any research is bound to reveal more information that will require future study. In the same light, the current study outlines the many areas that need expounding upon. For instance, to what extent should the law address ethical practices in business? The same will help to address the several cases where businesses exploit legal loopholes to navigate around the ethical requirements.

The research carried out in this study is centred on the subject of ethical issues in business. Based on the objectives, discussed, the study has seven main research questions. In point form they include the following:

What is meant by, ‘ethical standards in business/?

• What are the respective ethical practices demanded for in business?
• Why was McDonald’s selected for the study?
• What are the impacts of unethical practices in the food industry
• How are ethics of standards applied in a marketing plan?
• What are the opinions of the consumers regarding adherence to ethical practices in businesses?
• What is the motivation behind undertaking unethical work practices?

Assumptions

The current study is developed under the assumption that fast food consumers will continue to indulge in the commodities even with comprehensive labelling. According to Saunders et al. (2003), the assumptions made in a study prompt the researcher to delve deeper into the specifics of the subject matter. To this end, the study relies on the assumption in reference to develop a marketing plan that will open up the information sharing between McDonald’s and the consumers. The same will advice on the need for honest labelling and representation of the ingredients involved in the preparation of the foodstuff (Saunders et al. 2003).

Limitations of the study

In point form, the following is a list of the limitations faced in the execution of the current study:

• The time required for the research was quite small
• The current study is limited to the unethical practices in only one business industry (the food industry). Other sectors like logistics, banking and insurance are areas where unethical practices are carried out. However, their role is not examined
• Within the food industry, the researcher is restricted to fast foods, and by extension McDonald’s. The same was carried out with the awareness of diversity within the industry.

Delimitations of the study

• Initially, the researcher planned to use primary data by interviewing employees and dedicated customers of McDonald’s from 4 cities over various outlets. However, it was not possible to access all the participants due to the short time. To this end, the survey was carried out across 15 McDonald’s outlets in the United Arab Emirates.
• The study focused on the food industry owing to the increased interest in healthy products from consumers. The findings of this study are aspects that can be generalised to other sectors as well.
• The researcher settled on fast foods owing to the market size. Fast food industries across the world have larger consumers and the same implies easy access for participants to such a study.

Definition of Marketing Ethics

Ethics is a concept that is understood from the perspective of human conduct. In previous studies and existing literature, ethics has been defined variedly. According to Murphy (2006) ethics is a philosophy that evaluates human conduct. Murphy and Laczniak (2012) point out that ethics evaluates how individuals can make a distinction between right and wrong. In the field of marketing, ethics are viewed as the principles that govern the decision making.

The standards and principles associated with marketing ethics are meant to enhance an acceptable conduct in this field of business. Murphy and Laczniak (2012) suggest that marketing ethics are determined by various stakeholders. In most cases, the stakeholders include the company marketing its products alongside its customers. Given the integral role of marketing in business the respective principles and standards are incorporated several regulations. Murphy and Laczniak (2012) point out that a code of ethics on matters pertaining to marketing is very important to realise the acceptability of this field.

The code of ethics allows marketers to conform to the expectations from the various stakeholders and the society at large. However, marketing ethics transcends the legal and regulatory issues contained in the code of conduct. Ethical marketing practices and principles constitute the necessary elements required in establishing trust. Kotler (2000) suggest that trust is an essential ingredient in fostering long-term marketing relationships. To this end, ethical principles are necessary to ensure that marketing strategies endear a company to its clients.

In the field of marketing, the practitioners and scholars have a divergent approach to the subject. Churchill and Lacobucci (2002) cite an example of scholars who perceive ethics as being associated with an individual’s morality. Separately, Kotler (2000) argues that virtues such as honesty, fairness, responsibility can be acquired, notwithstanding an individual’s personal character. Practitioners who approach ethics from an organisational perspective focus on the cost of a marketing strategy. Kotler (2000), suggests that the cost implication results in the training of personnel on adherence to the code of ethics. Consequently, practitioners have a secondary view of ethics in the context of marketing.

The current chapter lays the foundation for the entire study with respect to unethical marketing practices in business. A background on the subject is outlined. The foundation of this study is based on the thesis statement that unethical practices destroy the image of an organisation. In this regard, McDonald’s franchise based in the UAE is used as the basis of researching up on the thesis statement. The rationale and research technique, employed are all outlined in this chapter. The subsequent chapter offers an insight into the existing literature on the issue of ethical standards in marketing.

Literature Review

Historical perspectives of ethical marketing.

Matters relating to ethics, with respect to marketing, are not a new phenomenon in business. According to Smith (2012), some of the earliest literature on the subject dates back more than half a century ago. For instance, as early as 1957 Packard (as cited in Smith 2012) discussed some of the negative elements of marketing.

Packard (as cited in Smith 2012) makes a claim that marketing is a completely manipulative area of business. In chapter 15 of the book, Packard (as cited in Smith 2012) argues that, “The large-scale efforts being made, often with impressive success to channel our unthinking habits, our purchasing decisions, and our thought processes by the use of insights gleaned from psychiatry and the social sciences” (Smith 2012, p. 7)

Notwithstanding the claim of marketing as a manipulative technique, the idea was advanced for several years. However, there were other schools of thought which did not buy into the whole manipulative idea. Smith (2012) point out that whereas the idea was advanced, other scholars associated the sentiments to how best to understand a consumer. Packard (as cited in Smith 2012) was seen to suggest that consumers should not be seen as being gullible.

The subject of marketing ethics is also associated with the element of social responsibility to the consumers. To this effect, Levitt (as cited in Saucier 2008) wrote a series of papers reflecting on his sentiments regarding social responsibility. Levitt (as cited in Smith 2012) was against business ethics that violated the civil nature of a people’s daily activities. The arguments were developed from the idea that businesses have no obligation to the welfare and social responsibility. The underlying aspect of business is to realise profits. To this extent Levitt (as cited in Smith 2012) associated marketing with the core principles which scarcely make reference to ethics in business.

The elements of marketing ethics have, for a long time now, been published in a number of peer reviewed articles. However, Saucier (2008) cites the Journal of Marketing as the most notable journal with respect to the subject. Saucier (2008) points out that the journal has gained the necessary reputation owing to its publication of articles that touch on advertising practices. Specifically, marketing ethics have been discussed from the perspective of advertising practices, deceptive marketing techniques and promotional aspects in a marketing campaign.

The Journal of Marketing has acted as a platform for notable scholars who have discussed marketing ethics at length. According to Lazo, Petit, and Zakon (as cited in Smith 2012), issues like promotion of questionable values and ethical dilemmas in marketing are very significant to companies. On their part, Bogart 1962 and Twedt 1663 (as cited in Smith 2012) outline the numerous ethical concerns in marketing. Their publication over the years has continued to assert the importance of the subject in the broader spectrum of business.

Based on the review outlined, so far, the foundation of ethics in business is pointed out as having taken roots several decades ago. Smith (2012) helps to illustrate that scholars and marketing experts have placed the subject on a high pedestal. However, critical aspects of marketing ethics lie in understanding the suitable and unethical marketing techniques. The same are reviewed in the subsequent sections as a means of developing on the historical foundations laid out (Smith 2012).

The UAE is considered one of the fastest growing market regions in the world. To this end, the region has attracted a wide array of companies, cutting across all industries. Marinov (2007) argues that the UAE is part of the affluent markets of the world. The same explains why big brand names like McDonald’s are found in the region. Notwithstanding the presence of Islamic laws, affluent markets have a lot in common with similar ones in Europe and America. Marinov (2007) points out that there is an appetite for western commodities in the UAE region. However, the same calls for marketing strategies which ought to conform to the regulations in the UAE market.

Corporate governance and business ethics are market specific. While carrying out a study on the same, Obay (2009) uses Dubai as an illustration of this phenomenon. The marketing guidelines in the region require that an advertisement campaign should be gender specific. A similar perspective has been discussed by Marinov (2007). Marinov (2007) argues that the message in such marketing strategies should either target men or women. In addition, Marinov (2007) points out that the UAE still has gender inequalities. To this end, the message for women should be subtle.

As already mentioned, Islamic law is applicable in the larger context of the UAE. Consequently, marketing campaigns are required to involve some religious words. This aspect has been discussed previously in literature. For instance, Marinov (2007) points out that the use of religious words and phrases should be used where appropriate. Separately, Obay (2009) argues that the same is essential in endearing the religious community to the product. There are cases when such words are inappropriately used, bringing about ethical concerns.

The Islamic religion emphasises on a modest lifestyle. The implication for companies is such that marketing should ensure that simplicity is at the heart of the message (Marinov 2007). In addition, in the UAE, marketing techniques where the message emphasises on price-cuts are not allowed. Such marketing tactics suggest that the price was intentionally raised high. To this end, marketing in the UAE is required to closely align itself with the requirements of the Islamic law.

As illustrated in the previous sections, there are several instances where marketing is seen as suitable and unsuitable. According to Coldwell and Herbst (2004), suitable marketing ethics can sometimes be referred to as positive. The positivity is seen in the sense that marketing is carried out in a manner that conforms to morally neutral aspects of a society.

To this end, studies in the field advance the understanding that ideal marketing ethics are the kinds that are developed on moral principles (Smith 2012). While discussing the subject, Nill and Schibrowsky (as cited in Chaar & Lee 2012), positive marketing ethics can be considered as suitable. However, relying on morality introduces the aspects of normative ethics. The difference between the two lies in the ideal ethics and what is actually applied in the field.

With respect to the suitable marketing ethics, a number of variables have been identified. For instance, Chonko and Hunt (as cited in Palmer 2000) initially carried out a study to identify suitable ethics in marketing. Their study found a number of ethical issues which hinder the realisation of suitable practices in marketing. Some of the issues include bribery, fairness and honesty. However, in a separate study, Smith (2012) found that pricing and product related issues add to the ethical concerns that inhibit stable ethics to be adhered to in marketing. To this end, suitable marketing ethics present a dilemma to the stakeholders whereby the demands of a company and the consumers have to be met.

The importance of ethics in marketing has resulted in several studies sprouting up to establish the actual ethical concerns that marketing experts face. For instance, Hunt, Chonko and Wilcox (as cited in Clemes & Burn 2000) carried out a survey which would identify key ethical concerns in marketing. The study by Hunt et al. (as cited in Clemes & Burn 2000) involved a total of 460 participants, all of whom were marketing researchers. Hunt et al. (as cited in Clemes & Burn 2000) identified a number of ethical concerns, which included research integrity and the treatment of consumers. On their part Smith (2012), found that most marketing executives engage in unethical behaviours when it comes to the marketing of certain products. However, when such managers were reprimanded, the vices stopped.

Understanding suitable marketing ethics requires insight on ethical judgments that marketers have to make. The same was the subject of a study by Akaas and Riodan (as cited in Davidson 2003) where marketing researchers’ opinions were sought regarding the ethical judgments they make. In the study, ethical issues like labelling of products and hyped branding as the borderlines for ethical issues. Smith (2012), on their part, found that ethical judgments are brought about by such issues as the information given to clients and the pricing of commodities. In both cases the judgments result in outlining the suitable marketing techniques. To this end, suitable marketing ethics are only realised when the marketers can make the necessary judgments from the issues raised.

Labelling is seen as a suitable marketing technique with respect to ethics. Alserhan (2011) argue that businesses that deal with goods require adherence to certain standards of labelling. Smith (2012) argues that labelling is particularly important in the food industry. For instance, companies that manufacture processed foods are required to adhere to certain safety standards. To this end, issues like the ingredients used in the products ought to be outlined. Hunt et al. (as cited in Clemes & Burn 2000), Smith (2012), and Saucier (2008) argue that proper labelling of products like food and commodities ensure that the safety concerns of the consumers are catered for. Proper labelling is, as a result, considered as one of the suitable marketing ethics.

As already mentioned, marketing executives are faced with a dilemma when it comes to making profits at the expense of honesty to their customer. The subject has been an issue of debate as outlined by Saucier (2008). Saucier (2008) found that most marketing professionals tend to distort certain information while describing their product. Smith (2012) found that misinformation and misinterpretation are ethical concerns that most marketers face. The dilemma results from the claim by Packard (as cited in Smith 2012) that consumers can be gullible and the need to increase sales.

Several studies outline the possibility of realising profits by avoiding the ethical issues surrounding misinformation and misrepresentation. Hunt et al. (as cited in Clemes & Burn 2000) initially advocated that companies avoid overhyping their products but, instead, focus on the actual benefits. Gilbert and Churchill (2001) recently pointed out that companies can market their product by outlining the actual benefits of their products. The same calls for intensive research on the said benefits. Saucier (2008) found that marketing a product based on well researched issues by credible authorities increases the allure of a product.

Pricing, on its part, is one of the thorny ethical issues that most marketing executives face. The subject was an issue of research in the study carried out by Smith (2012). According to Packard (as cited in Smith 2012), marketing is seen as deceptive in the manner that a particular commodity is priced. Packard (as cited in Smith 2012) found that marketers tend to associate a product with high values when in fact the same is not true. Under such circumstances, the idea advanced by Levitt (and cited in Smith 2012) argues that consumers are not as gullible as imagined, emerges.

Marketers tend to price their products under an illusionary value in order to attract their customers. However, Smith (2012) point out that such a move is seen as exploiting the consumers. To this end, reform is necessary to ensure the dignity of the consumer is safeguarded.

Good marketing ethics have a direct impact on the operations of a company, with respect to meeting its core objectives. Ethics are the viewed as the principles a person or an organisation relies on, to meet its objectives. In a study carried out my Gulls (and cited in Brenkert 2008), decisions made by a company can be clear cut right and wrong. However, with respect to marketing there are exists ambiguity resulting in ethical dilemmas.

In the field of marketing, there are a set of uncertain problems pertaining to product development and pricing policy. Gulls (and cited in Brenkert 2008) made an observation that when it comes to distribution activities and promotion ethical dilemmas present themselves. In this section, of the review, ethical issues in marketing are highlighted. To that extent a code of ethics, is outlined, to point out the areas where business ethics must be employed.

The first ethical issue, commonly associated with marketing is the misleading of clients. The issue was subject of the study by Gilbert and Churchill (2001) and Davidson (2003). In the studies, the production of a misleading advertisement was viewed as a common ethical dilemma. Gilbert and Churchill (2001) suggest that regulation creates the boundaries for what can be said in a marketing campaign. Consequently, marketers are required to consider the ethical boundaries. Davidson (2003) evaluated a number of claims with respect to how clients get misled through marketing campaigns. Consequently, to establish when a claim is taken too far companies are required to adhere to a code of conduct on matters relating to ethics.

The ethics related to direct marketing is another concern facing a number of companies in the present times. According to Davidson (2003), direct e-mails and telemarketing amounts to the invasion of privacy. However, direct marketing should not be misconstrued to imply that it is not an ideal marketing strategy. Davidson (2003) suggests that the same is another example of the ethical dilemmas which present themselves when developing an ideal marketing strategy. To this end, the use of promotion avenues, to market a product should be governed by sound ethical principles.

The safety of consumers is an important concern that should be considered in the development of a marketing plan. Hermit (as cited in Murphy 2006) carried out a study to evaluate the safety measures taken in protecting consumers from harmful products. According to Saucier (2008), companies, particularly in the cosmetic and food sectors, fall prey t the temptations of marketing of harmful products. Saucier (2008) went on further to point out that, industries like tobacco and fast foods are culprits in the production of products that are wholly harmful to their consumers. To this end, marketers ought to evaluate the degree of responsibility they take due to the harm caused by the products.

Although the consumers also have a responsibility, the same should be clearly delegated in the form of disclaimer alerts on the harm caused by the products. Brenkert (2008) argues that the right choice is not always clear. The same calls for adherence to ethics. Marketers can also take their own initiative to set out ethical practices. Saucier (2008) refers to the fast food industry pointing out that, while enjoying the profits made by the easy-to-make foods they should take personal initiatives to advance ethical standards.

In the field of marketing, adherence to pricing ethics is an important component in enhancing the relationship between the seller and the consumer. Davidson (2003) evaluated the same and mentions predatory pricing as a common practice used by marketers. According to Davidson (2003), predatory pricing is practice used to drive out competition. The same is done in a manner that the competition cannot possibly compete. Such a trend can be harmful to consumers and marketers are advised to tread carefully. Policy designed to foster a healthy marketing environment must ensure that there is a balance between the profits and the welfare of the consumers.

Cause-related marketing is an emergent ethical issue in the field. Davidson (2003) argues that cause-related marketing becomes an ethical dilemma based on how it is managed. The society develops a perception of a company based on the of cause impact on customers. To this end, marketing departments responsible for the relationship with a cause are required to manage the same with transparency.

In the current business arena, companies are increasingly forced to adhere to the environmental concerns. According to Davidson (2003) marketers are developing marketing strategies based on how their product affects the environment. The so called ‘Green’ practices can improve the good standing of a company since the society will attach such practices to the care and protection of the environment. Environmentally-friendly choices can be a costly affair (Saucier 2008). However, marketers must consider their responsibility to society and the environment, as they come up with strategies to sell their products

Marketing executives are often confronted by a number of ethical issues. Graham (as cited in Clemes & Burn 2000) argues that the ethical issues often revolve around the costing of development of a marketing strategy. Consumers ought to be informed of price or size changes and the same has huge cost implications. However, marketers are also required to consider the ethics behind their policies. To this end, issues of cost result since certain ethical requirements are a costly affair. An example of cost implications on ethical demands of marketing is in the distribution of products. Fresh foods, for instance, require healthy transport conditions like refrigerators. However, marketing executives opt to ignore the requirement just to minimise on the operating costs of their company.

Ultimately, ethics relates to organisational performance in generating goodwill for a particular company. Davidson (2003) argues that such goodwill often translates into sales. Adhering to the laid down ethical concerns, of marketing, by a company turns an organisation into a more attractive place to work. Davidson (2003) argues that the company’s good reputation is passed on to the staff. Motivated, proud employees tend to improve on their performance. Companies that don’t conform to the required marketing ethics destroy their good reputations with their consumer base. A good reputation is arguably much harder to build compared to sales numbers.

Stereotyping is also another ethical issue of concern in business. Advertisements are known to cast particular groups in stereotypical roles. Davidson (2003) examined washing powder advertisements across the world. Such marketing campaigns often portray women as housewives preoccupied with their laundry. Another angle used in similar advertisements is the ‘do-it-yourself’ marketing. According to Rodwin (2010) such advertisements depict only men as being “handy.” The stereotypical impression created by a number of advertisements is that having an abundance of possessions translates into fulfilment and happiness. Such campaigns create an opposing message that the consumer will not be part of the happy group unless they purchase the product.

Most marketing campaigns insert a hidden message meant to manipulate clients. Smith (2012) cites the George Bush 2000 Presidential Campaign. In that campaign, there was an advertisement where the word “rats” was used for a split second (Smith 2012). The same was one as criticism to his opponents’ medical plan. Such tactics appeal to the metal faculties of a consumer to a associating certain aspects (good or bad) in relation to their product.

Marketing can come out as offensive, especially when it appears to create some cultural and ethnic sensitivity. Waller (2012) conducted a survey on motor vehicle advertisements. According to Waller (2012), advertisements about luxury cars depict men as womanisers. Such a marketing tactic depicts women as objects that can easily be acquired through material objects. Waller (2012) suggest that depicting a woman as dependent on financial success is offensive. Marketing campaigns of that nature ruin relationships between organisations and their clients.

Racial stereotypes are the most common when it comes to marketing strategies. Waller (2012) found that it is possible to exclude a certain group of people in a multi ethnic society. In a separate study Palmer (2000) found that marketers in the fast food industry often target children with the juicy images created. The ethical concern in this case is the assumption that children don’t need to be informed on the dangers of fast food Waller (2012). Consequently, the children are exposed to such diseases as obesity.

Marketers tend to manipulate consumer into buying a certain commodity, when in fact it is not the actual product. Waller (2012) discussed the same and refers to such a trend as post-purchase dissonance. According to Waller (2012), post-purchase dissonance often occurs when a consumer makes a mail order. Such a scenario occurs when a client gets an inferior quality or quantity of the goods they ordered. Although the buyer may claim a refund, such tactics usually deter prospective buyers.

As already mentioned, trust and good faith are integral aspects of developing a rapport between the consumer and the seller. The implied good faith, due to marketing ethics is essential for the mutual benefit of both parties to trade. To this end, the study by Kotler (2000) established that the performance of an organisation transcends the discretion of its executives. Marketing ethics opens up the process to include all the stakeholders in trade. The same ensures maximum benefits out of the trading endeavour. Waller (2012) suggests that marketing ethics have been legislated in certain states in America.

The implied covenant of good faith and fair dealing “is meant to enforce the contract or transaction in a manner consistent with the parties’ reasonable expectations” (1998 WL 1991608 Mich. App.). Gundlach and Murphy (as cited in Murphy 2006) argue that courts may ensure the good faith is incorporated in any form of marketing exchange. To this end, legal institutions like courts and tribunals are expected to embody the spirit of good will.

Ultimately, marketers are required to make decision but ought to be guided by the principles of ethics. In the study by Fry and Polonsky (and cited in Rodwin 2010) must ensure that all the stakeholders are satisfied by the decisions made. The input from all stakeholders is required, coupled with their specific interests to ensure that a middle ground is reached. Homburg, Krohmer, and Workman (and cited in Grewal & Levy 2010) carried out a survey to establish marketing orientation and how it relates to marketing. Homburg et al. (and cited in Grewal & Levy 2010) arrived at the conclusion that a marketing orientation results in the success of possible marketing strategies employed by a company. A disclaimer is necessary to point out that. At times, the marketing strategy may not be 100% satisfactory t all stakeholders but their involvement enhances ethics.

The domain of marketing ethics has a locus in the element of pricing. Customers at Wal-Mart customers often get low prices. However, Palmer (2000) points out that the company has several critics. The critics include “organised labour, feminists, human rights activists, environmentalists, local businesses, and anti-sprawl activists…resulting in a growing negative consumer perception of Wal-Mart’s corporate citizenship” (Palmer 2000). Unfortunately, most approaches to market orientation often opt to elevate the interests of individual stakeholders.

According to Coldwell and Herbst (2004), Wal-Mart is an example of a company that focuses on the consumer as its individual stakeholder while at the same time disregarding the plight of its workforce. Wal-Mart disregards the workforce but lays emphasis on profits and the consumer numbers. Failure to incorporate their employees in the decision making process, gives Wal-Mart a bad image. Such a move is seen as a failure for a marketing strategy.

In recent times companies are facing immense pressure to focus on all their stakeholders. The incorporation of all stakeholders ensures that an organisation is accountable for its actions. Vargo and Lusch (and cited in Coldwell & Herbst 2004) add that the consideration of all the interests is a step towards satisfying all the stakeholders. Marketing exists to provide both social and economic progress (Coldwell & Herbst 2004). The logic behind such an understanding is captured in the one of the many definitions of marketing.

The American Marketing Association defines marketing as follows, “marketing is an organisational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders” (Coldwell & Herbst 2004, p. 34).

The definition places emphasis, on marketing, with respect to ethics. The American Marketing Association (as cited in Coldwell and Herbst 2004) introduces the importance of delivering value while marketing. To this end, it is the responsibility of marketers to come up with meaningful relationships that provide benefits to all relevant stakeholders. Based in the study by Saucier (2008), marketing ethics was, for the first time, defined to include all the necessary parties. The same is seen as a move in the right direction with respect to the development of marketing ethics.

Marketing executives can make an ordinary decision or one that is bound by ethics. Saucier (2008) uses their study to point out the difference between the two decisions. An ordinary marketing decision disregards the code of ethics while an ethical one sticks to the laid down regulations. Consequently, Saucier (2008) advices marketers to settle on a decision that satisfies all the parties. An individual’s values also contribute towards a marketing decision. At this point, ethical dilemmas present themselves on the decision to be selected. Ethical decision making requires that marketers make decisions informed by their personal morality, laid down rules and the conviction to enhance the concept.

Ethical decision making, in marketing, is not any different from other similar functions of an organisation. Gilbert and Churchill (2001) argue that marketing ethics overlap with those of general business practices. The argument relies on the assumption that all activities in an organisation are geared at ensuring the products reach the consumer. To this end an ethical component to business decisions, regardless of whether it is marketing or some other functional area component is important in the functionality of the organisation.

There is a high possibility to generalise the average behaviour patterns in any company. Waller (2012) points out that marketing identifies the importance of stakeholders, their related issues. Marketing also enhances information gathering. The same is meant to respond to the constituent elements of the marketing domain. Secondly, in the decision-making process, marketers are required to settle on the most important issues. Based on this argument, Waller (2012) suggests that marketers should focus on the intensity of the issues at hand.

The fast food industry, in the US, is under immense pressure by government agencies, consumers, and special interest groups to develop menu options that consider the health of their consumers. While discussing the same, Smith (2012) makes reference to children as the main interest group. Children, as already mentioned, are not in a position to make informed health choices.

Upon the release of the movie Super Size Me McDonald’s restaurants became the focus of negative publicity associated with fast food. McDonald’s responded by introducing healthier portions, like salads, to their menu. The evaluation and resolution of ethical dilemmas in marketing requires an ideal theoretical framework as a point of reference. Churchill and Lacobucci (2002) point out that moral philosophy is an ideal point of reference in the development of a theoretical framework.

An ideal theoretical framework is one which encourages internal discipline. Research has indicates that companies are lenient on the top sales performers compared to the ones who perform poorly (Churchill & Lacobucci 2002). Such lenience allows top sales performers to further unethical practices without fear of the repercussions.

The process of advancing a theory of marketing ethics has been the subject of numerous studies. The following agencies are an example of how the US intends to enhance an ideal theoretical framework due to policy making:

• American Marketing Association
• Direct Selling Association
• Direct Marketing Association
• Marketing Research Association
• American Federation of Advertising
• National Advertising Division of the Council of Better Business Bureaus.

The agencies mentioned above have come up with comprehensive codes of conduct meant to tackle the ethical risk in marketing. According to Baragona (2010), the recent regulatory changes in America require marketing executive to take the onus of implementing ethics in the field. A theoretical framework that promotes the culture of ethics in an industry will ensure marketing becomes a respectable entity. The General Theory of marketing lays the ground for a more comprehensive framework.

Increasing trends in the field of business support new trends of ethical issues in marketing. According to Smith (2012), most emergent ethical concerns arise from consumer psychology. In this section, of the review, some fundamental consumer behaviours are outlined.

Ethical consumerism

Marketing strategies, and ultimately, marketing strategies are developed with the understanding that consumers perceive certain ethical concerns. The study by Smith was able to outline that “consumers are influenced in purchase and consumption due to certain ethical considerations” (2012, p. 43). Whereas such an understanding was seen as a definition of ethical consumerism, there is distinction from consumerism as defined by Kotler (and cited in Smith 2012).

Based on the definition, given, it is possible to have a negative ethical consumerism. In a separate study Gilbert and Churchill (2001) point out that, consumers develop an attitude towards a product, based on the ethical connotations associated in its marketing. To this end, Smith (2012) found that certain customers make a decision to purchase a product based on the ethics of its production and marketing. There are cases when a product is associated with a company that is reputed for unethical practices Waller (2012). Similarly, consumer decisions have been developed based on the ethical perceptions.

Understanding ethical consumerism is largely focused on the consumer decisions with respect to purchases. According to Smith (2012), when a consumer refuses to make a purchase, the same can be considered as an ethical boycott. In a separate study Bellizzi and Hasty (and cited in Smith 2012) found that organised consumer boycott often results from a negative perceptions to the ethical concerns of marketing a commodity. The same applies for cases when there is a positive ethical consumerism.

The current chapter highlights the previous studies on the issue of ethics in marketing. Some of the areas of interest include a historical outlook on the subject followed by an overview of some of the unethical perspectives of marketing. In this chapter theoretical perspectives on the subject of ethical marketing standards are outlined. The review of literature highlights the general thoughts on the subject from various scholars. The next chapter provides the results from the actual research undertaking carried out through the administration of questionnaires.

In this section of the study, the outcome of the interview is illustrated. The participants were administered with questionnaires, randomly. The questions in the questionnaire are closed. Participants are only required to respond with a No or a Yes as the case may be. The questions on ethical marketing practices are posed in a fast food industry setting. The results, outlined, give a general bearing of the objectives of the study. The results act as responses to the questions raised in the introductory section. Based on the results outlined, a suitable discussion on the ethics of marketing in the fast food industry suffices.

The study involved a total of 250 participants based in the United Arab Emirates’ city of Dubai. In terms of gender, 140 of the participants were female while 110 were male. The females were mostly between the ages of 19 to 25. On the other hand, the males were selected between the ages of 20 to 27. The participants were randomly selected from various McDonald’s outlets in the city of Dubai. 154 of the participants were customers while 96 were employees. Prior to the study all the participants filled out the consent forms.

Familiarity to ethical standards

Participants to a study are required to exhibit an understanding of the subject intended for evaluation. According to Creswell (2003), the credibility of a study is determined by the participant’s ability to understand the subject matter. In this regard a series of questions were posed to the participants to establish their understanding of ethical standards. Participants were required to respond with a ‘Yes’ or ‘No’ depending on the question posed.

• Have you encountered the word ethics in your career?

All the participants were given the questionnaires to fill out. Table 1 is an illustration of how the participants responded.

Table 1: Have you encountered the word, ‘ethics’ in your career?

Based on the figures represented in Table 1, a total of 27 participants failed to respond to the question posed. However, an overwhelming 223 responded in the affirmative. It is unclear whether the 27 had no clue or the question was skipped accidentally. That notwithstanding, there is a general view that a majority of the participants have a general idea of the concept.

2. What are ethical standards?

The need to establish whether the participants truly understood the subject was followed up by this question. Table 2 illustrates the responses based on the proposed set of answers.

Table 2: What are ethical standards?

Responses to the question posed, in this section were varied. 138 of the participants were of the view that ethical standards are the practices that promote integrity of a business. 59 of the participants view ethical standards as the adherence to the rules of business practice. On the other hand, 53 view the subject as genuine business practices. In general, the participants have an idea of the entails of business ethics.

Ethical standards in the field of business are coupled by a series of practices. The participants were given a number of options to select from in regard to their view on the ethical practices demanded by a business. Table 3 outlines the responses given.

Table 3: Ethical Practices

There are a number of practices that a company can carry out to conform to ethical practices. In this study a total of 6 different opinions were surveyed regarding ethical practices of an organisation. Table 3 illustrates the results of the study in which the representation of ethical principles was the most common opinion among the participants. The least popular view was that competence should be a core principle in organisation. That notwithstanding, the responses given illustrate a general willingness among the participants for ethical practices.

As already mentioned, the current study was focused on McDonald’s, the fast food outlet. However, ethical practices cut across various business organisations. In this regard, the participants were asked to indicate why think McDonald’s fits the profile of a suitable company for the study. Table 4 outlines the results of this survey.

Table 4: Why was McDonald selected for the study?

McDonald’s is an international brand in the fast food industry. According to Brubaker (2007), the fast food industry is laced with several instances of unethical practices. To this end, the study decided to involve a well known brand in the industry. The information in table 4 suggests that 103 participants viewed that McDonald’s was selected owing to the unethical practices common in the industry. On the other hand, 67 of the participants were of the view that the company was selected owing to its huge client base while 65 suggested that the company was a common brand. A paltry 15 supported the view that it was an easy company to evaluate.

In the fast food industry, there are a number of issues which constitute unethical practices. In this regard a number of those issues were posed as questions to the participants. Figure 1 is a representation of the unethical practices and the percentages of their occurrence, according to the participants.

Figure 1: Unethical marketing issues

Participants in this study were provided with 8 different issues related to unethical practices in marketing. Misrepresentation recorded a whopping 35% of the responses from the participants. According to the results in figure 1, consumer safety and hidden messages follow suit at a joint 16%. The participants perceived pricing as another unethical practice associated with McDonald’s with the subject recording 15% response from the participants. Other unethical issues associated with the fast food franchise include, Cause-related marketing (5%), employee motivation (7%), Post-purchase dissonance (5%) and cultural sensitivities (1%).

Misrepresentation

Misrepresentation, as already discussed in the literature review, is the most common unethical practice in the food industry. Participants were asked of the degree at which misrepresentation occurs. Figure 2 is an illustration of the responses given.

Figure 2 illustrates that the participants view that misrepresentation is an often occurrence in the fast food industry. However, the results also indicate that more than 50% of the participants perceive the misrepresentation occurs once in a while. A significant percentage of the participants perceive that the same rarely occurs. The disparity in the responses can be attributed to the various issues of misrepresentation.

There are a number of instances where marketing makes use of misrepresentation. In the current study, participants were provided with three options that would suggest misrepresentation. In this regard, figure 3 illustrates how the participants responded.

The participants perceive that the misrepresentation commonly occurs when fast food companies associate their products with celebrities. More than 70% of the participants surveyed hold this opinion. An equally overwhelming number of participants perceive that fast food companies create the impression that their products are healthy. In addition, more than 505 of the participants are of the opinion that an inaccurate representation of ingredients is a common occurrence in the fast food industry. Figure 3 is a clear indicator that misrepresentation is a common occurrence in the fast food industry.

Consumer safety

From the literature review section, it was clear that fast food companies do not necessarily come up with safe products. In this regard, the consumers were surveyed on their opinions regarding consumer safety in the marketing strategies used by fast food companies. Figure 4 is an illustration of the responses. Participants were polled on their opinion regarding prioritisation of consumer safety in marketing strategies.

Based on the results outlined in figure 4 it is clear that there is little priority given to safety standards. For instance, more than 50% of the participants perceive that fast food companies rarely make consumer safety a high priority. The opinions on the moderate priority found that 44% of the participants are of the opinion that companies do so once in a while. An equal number suggest that the same is rarely a consideration. Collectively an average of 40% of the participants view that consumer safety is not a priority based on the results of the once in a while and rarely responses.

Marketing practices, like any other business operations, can be executed based on certain standards. The participants were asked as to whether they were familiar with this premise. To this end, the participants were required to outline the various instances through which ethical standards can be applied in marketing. The scope of the responses was limited to the fast food industry. Figure 5 is an illustration of the responses.

The participants were provided with four options to which they would select their preferred application of ethics in marketing of fast foods. Based on figure 5, 35% of the participants were of the opinion that health considerations should be a top priority in the marketing of fast food products. On the other hand, 15% were of the view that marketing campaigns should have a full disclosure of the ingredients. 30% percent of the participants were supported the adherence to set out marketing strategies. Given the option to avoid the use of misleading information, 20% of the participants perceive the same as an ethical application.

In this part of the questionnaire, the participants were asked to illustrate the degree of application of the respective options of ethical applications in marketing. Based on the respective option, participants were asked to outline the degree of priority and frequency. The figures 6, 7, 8 and 9 are an illustration of the responses given.

From the results obtained, 75% of the participants perceive health consideration as a high priority in ethical marketing. Within this percentage, 55% view health considerations to be applied often while 9% suggest that the same should be applied moderately. A paltry 1% of the respondents suggest that whereas health considerations should be a high priority, they should rarely be applied in marketing.

24% of the participants support a moderate application of ethical practices. A whopping 14% of this percentage support an often approach to a moderate application of health considerations. Based on figure 5 , 10% of the moderate proponents support a ‘once in a while approach’, while 1% suggest that the same should not be applied altogether. Finally, 9% of the participants support the premise that health considerations should not be a priority in ethical marketing practices in fast food companies.

Figure 6 indicates results from the participants regarding their opinions on the issue of adherence to the laid out standards of ethics in the fast food industry. 83% of the participants support the idea that adherence to industry regulations on ethics should be treated as a high priority. Within this set of participants 57% argue that the same should be carried out often while 26% are for once in a while application. Interestingly, none of the participants supported the view to rarely apply standards of ethics in marketing.

In the case of full disclosure and the misleading campaigns, the participants were asked to give a cumulative response. Both premises were seen as having a similar effect in the sense that they point to the nature of a marketing strategy. Marketing campaigns tend to be deceptive. In this regard, the participants were sought for their opinion regarding misleading advertisements. Figure 7 is an illustration of their responses.

Figure 8 points to four main aspects of a misleading advertisement campaign. The participants were asked to voice their opinion on the main aspect they would have likes addressed in the nature of a marketing strategy. With respect to the fill disclosure of the ingredients, a paltry 5% were in support. On the other hand, 43% were in support of an enticing but not deceptive marketing strategy. 35% would like marketing campaigns to point out the effects of using the product in reference. All this while, 17% percent of the participants support the need for a partial outline of the ingredients of a product.

The study was cognisant to the idea that ethical practices can be practiced across various industries without having to diminish the quality of the product. To this end, the study allowed the participants to voice their opinions regarding ethical practices in marketing. Figure 8 is an illustration of the results of this survey.

Figure 9 outlines the five main opinions of consumers regarding marketing ethics. 15% of the participants relate ethical marketing to a vote of confidence on the product. 17% perceive the ethical practices can be profitable to a business venture. 24% of the participants suggest that ethical marketing techniques, in the fast food industry, promote healthy eating. On the other hand, 23% view ethical marketing as an ideal method of reducing lifestyle related diseases. Finally, 21% of the participants view ethical marketing practices as a means to terminating the tradition of deception in advertisements.

In the previous chapter, it was established that unethical practices are driven by the need to make profit. However, the current study went on further to outline a number of reasons as to why fast food outlets end up violating ethical standards in marketing. The major motivation has been making profits. However, demand from consumers and the high cost of alternative foods have made the fast food industry violate ethics in marketing.

To a certain extent the lack of a tough legal framework to enforce the ethical practices motivates said unethical techniques. In this regard the participants were sought after to provide an opinion on what they feel is the main reason as to why fast food companies engage in unethical practices. The results are outlined in figure 9 below.

According to the results displayed, in figure 9, it is apparent that quick profits coupled by a weak legal framework act as the major motivation for unethical practices. 51% of the participants perceive quick profits as the main motivator, followed by 31% in favour of a weak legal framework. 11% find the high cost of fast food alternatives as another driver. On the other hand 8% of the participants cite high demands of fast foods as a motivating factor for unethical practices. That notwithstanding, all four options provided to the participants checked out as possible motivators for unethical marketing practices in the fast food industry.

The current chapter outlines the results of the study carried out. The study involved administering questionnaires to participants. The results are a reflection of the participant’s opinions on ethical marketing standards in the fast food industry. The responses shed more light on the questions raised by the objectives of this study. In the subsequent chapter a comprehensive discussion on the findings is provided. Chapter four compares the findings of this study to the opinions raised by previous studies on the subject.

The previous chapter was an illustration of the responses obtained from the participants who took part in the study. In light of this, a discussion on the implications suffices. The first chapter mentions four specific objectives of this study. Primarily, the study is meant to establish the standards of ethics in the fast food industry. Secondly, some of the common ethical violations made by companies are outlined. The effect of not adhering to ethical standards during also features in the discussion. The discussions are meant to open the way for an ideal marketing technique for fast food companies.

Understanding Ethical Standards of Marketing

As previously mentioned, ethics is associated with the human conduct of a people engaged in a specific trade. In There is no universal definition for the subject. However, Kotler (2000) looks at ethics from a philosophical point of view. Kotler (2000) argues that ethics is akin to the evaluation of human conduct. Kotler (2000) further describes ethics as an attribute that business persons exhibit when it comes to making a choice between what is right and what is wrong. Ethical marketing techniques enable the consumer to make rational decisions regarding the product.

From the survey conducted, comprehension of the subject was quite vital. For instance, table 1 points out that out of the 250 participants, only 27 of them failed to give an affirmative response. That notwithstanding, a whopping 223 participants responded in the affirmative. The results are an indicator that both consumers and producers of products have the knowledge of the idea of ethics in business.

At this juncture, a question would be posed as to the importance of being familiar with ethical standards of marketing. Churchill and Lacobucci (2002) made it clear that marketing ethics are meant to enhance an acceptable conduct in this field of business. In this regard, the credibility of an organisation depends on good marketing ethics. Churchill and Lacobucci (2002) standards in the field are supposed to be developed by the necessary stakeholders depending on the industry. Some of the stakeholders include the company, its customers and marketing professionals. Churchill and Lacobucci (2002) point out that a code of ethics on matters pertaining to marketing is very important to realise the acceptability of a particular industry to the market. To this end, an industry developed code of conduct becomes necessary.

The issue of a code of conduct was also part of the issues presented to the participants. Participants were asked what their idea of ethical standards entails. There were three responses presented as options to the participants. From table 2, it is clear that 138 of the participants were of the view that ethical standards are the practices that promote integrity of a business. With respect to the rules of business practice (industry code of conduct) only 59 of the participants associated the same to the meaning of ethical. On the other hand, 53 view the subject as genuine business practices. Based on the first two responses, industry practices are essential in understanding the subject of ethical standards.

Codes of ethics in various industries allow marketers to adhere to certain agreed upon rules of practice. However, marketing ethics transcends the legal and regulatory issues contained in the code of conduct (Abbarno 2001). Ethical marketing practices and principles should encompass the necessary elements required in establishing trust. Kotler (2000) points out that a number of long-term marketing relationships (between producers and consumers) largely depend on trust. To this end, ethical principles are necessary to ensure that marketing strategies endear a company to its clients.

The divergent approach to the subject of ethical standards is evident. The results, in tables 1 and 2, help to support this argument. Ethical standards of practices have been associated with morality where virtues such as honesty, fairness and responsibility are necessary (Borgerson & Schroeder 2002). Since the subject boils down to individual characteristics such traits can be acquired by an individual and applied on a corporate level. The study found that McDonald’s staff had the awareness of ethical standards of marketing but failed to adhere to most of them.

Expected Ethical Marketing Practices

Companies rely on their marketing techniques to ensure the market is well informed about the product. However, based on the discussions in this study it is important to evaluate of the ethical concerns that should be factored in the marketing process (Brinkman 2002). In this study a total of 6 different opinions were surveyed regarding ethical practices of an organisation. Participants’ opinions were sought regarding McDonald’s keenness to apply ethical practices.

Quality assurance, accreditation and ethical auditing also featured as the necessary practices that companies should undertake. From the results displayed in table 3 the representation of ethical principles was the most common opinion among the participants. The least popular view was that competence is disregarded during marketing in fast food industries. The participants are aware that ethical practices are necessary in an organisation (Ellerbach 2004).

In light of the ethical awareness of the participants it is important to answer the question on the entails of ethical practices in a given organisation. Ellerbach (2004) looks at ethical marketing as a philosophy. Ellerbach (2004) argues that the philosophy of ethical marketing is meant to encourage responsibility when it comes to advertising. The idea of what is ‘right’ and what is ‘wrong’ makes the ethical practices rather abstract.

Based on the abstract nature of what is regarded as ethical, certain practices which are unethical tend to surface when discussing about the subject. Hsu (2012) points out that, unethical practices per se are not illegal. It all boils down to winning psychological battle of impressing the consumer. A look at figure 1 points out that McDonald’s UAE is characterised by 8 different unethical marketing practices.

Misrepresentation recorded a whopping 35% of the responses from the participants. In a joint second position, consumer safety and hidden messages follow suit given the 16% response rate. Pricing was also another unethical practice associated with McDonald’s with the subject recording 15% response from the participants. Other unethical issues associated with the fast food franchise include, Cause-related marketing (5%), employee motivation (7%), post-purchase dissonance (5%) and cultural sensitivities (1%).

The results in figure 1 point to a dark and sneaky trend being developed by the McDonald’s franchise in the UAE. According to Bronstein (2012), companies that engage in unethical practices given the loopholes of the system, tend to destroy customer relationships. The same can be reflected from the study given that 103 participants perceive McDonalds’s UAE as having unethical marketing techniques (see table 4). Such an opinion dents the brand’s image.

Ethical marketing practices are an ideal way through which a brand’s image is improved. Herbst, Sean, and Allan (2013) suggest that shunning unethical marketing techniques help promote long-term relationships with the consumers. In this regards, companies should ensure their advertisement campaigns are honest. The consumer is meant to get what is advertised and not anything less. In this regard the issue of regular ethical auditing comes into play.

The marketing team requires a mechanism that can evaluate their adherence to ethical marketing. Lurie (2009) argues that regular ethical auditing will help reduce cases where companies overlook grey areas in the marketing techniques being applied in various advertisement campaigns. For instance, the respondents in this case were asked about what they believe to be the most unethical marketing technique used by McDonalds. To this end, 35% of the participants mentioned misrepresentation. The findings are represented in figure 1. However, internal ethical auditing will ensure that such unclear areas are not exploited.

Most companies tend to develop their own marketing strategies to use in promoting their products. In addition, some organisations use benchmarking to develop their marketing techniques (Moshe & Yaov 2004). What this means is that the firm compares its operations with those of other companies regarded to be leaders in the industry. The marketing strategies developed are in line with those of the leaders. Table 3 points out that an average of 4.77 of the participants perceives McDonald’s UAE as one of the companies that engage in the benchmarking practices. The ethical element of this technique is that benchmarking can be done against a company that has a strict policy on ethical marketing. As such, the developed strategies are also likely to be ethical.

Benchmarking can help an organisation to adhere to industry regulations. However, Chaar and Lee (2012) argue that companies may also copy marketing practices that are unethical from their peers in the industry. To avoid this situation, the management should engage in quality assurance. The strategy is described in table 3. Quality assurance enables an organisation to verify whether their content meets the necessary ethical standards of the market. The numerous gray areas become illuminated and help a company avoid engaging in unethical marketing practices without their knowledge (Clemes & Burn 2000).

Quality assurance was once seen as a necessary undertaking in a marketing campaign for Dove soap. According to Rodwin (2010), the company had an advertisement that allegedly involved actual models. Such a marketing strategy was as a result of benchmarking from other high end cosmetic brands. The idea was to give the market segment the impression that the product would provide them with the ‘supermodel’ look they were looking for. The marketing campaign was found to have misled the consumers. The reason is that it did not involve real models. In addition, it was found that the company had altered the images of the individuals used in the campaign to suit the needs in the market (Waller 2012). The absence of quality assurance meant that Dove would engage in an unethical marketing technique, which would have been avoided.

Ethical practices in marketing demand a strict adherence to the principles laid down in a particular field. According to Waller (2012), marketing communication is needed to enhance uniformity in the ethical standards used. In this regard, the language used in an advertisement campaign should less deceptive but more convincing. The misrepresentation cited by McDonald’s involves advertisement campaigns which involve a sports personality. Given the high health demands for sporting action the advertisement creates the impression that fast foods for McDonald’s are healthy enough. Such a claim is definitely flawed considering the ingredients used in production of fast foods.

Ethical marketing strategies are developed by professionals who have a firm knowledge of the subject. Professionalism has some principles which apply almost universally (Ayers 2011). Ethical practices are realised when the marketers adhere to the demands of professionalism. One of the reasons McDonald’s appears to be failing is their disregard for competence. To this end, non-professionals end up developing a marketing strategy which disregards most if not all the requirements of ethics.

Ethical marketing demands that an advertisement should be developed as an individual content. Brinkman (2002) argues that sneaking an advertisement alongside news or other forms of entertainment is unethical. Viewers of such content tend to associate the product with the content being broadcast. Most of the consumers are unable to differentiate between the product and the content being aired. McDonald’s have run into some problems with that subject by targeting children’s programs to advertise their products. Such a move is unethical owing to the intense deception. However, this is one of the gray areas since such advertisement usually don’t mention association with the entertainment. They merely create an impression of association.

Fair treatment, on the part of the consumer, is an important principle of marketing. In this regard, the exploitation of children is a common practice in the fast food industry (Hodge et al. 2013). Such instances of exploitation result in a disregard of consumer safety as pointed out in figure 1.

Fast food companies are known to compromise on the healthiness of their products. The study sought the participants’ opinions regarding consumer safety in the marketing strategies used by fast food companies. Figure 4 points out that there is little priority given to safety standards in the marketing process. From the results 50% of the participants perceive that fast food companies rarely make consumer safety a high priority. 44% of the participants argue that consumer safety is a seasonal concern to McDonald’s. An equal number suggest that the same is rarely a consideration. On average, 40% of the participants are of the opinion that consumer safety is not a priority to McDonald’s franchise in the UAE (Ellerbach 2004).

Companies are expected to have some ethical practices. Table 4 points out that McDonald’s fairs poorly in implementing the ethical marketing practices. However, adherence to the principles of marketing, as outlined, helps companies to avoid treading into gray areas that will compromise the ethical integrity of their marketing techniques. When a company fails to adhere to such principles, they find themselves in a situation similar to that of McDonald’s (Grewal & Levy 2010).

Unethical Practices Associated with McDonald’s

In the literature review section, a number of unethical marketing practices were outlined. Most organisations were found guilty of misleading clients. The same was reflected in the current study as illustrated by the 35% opinion from the participants. Gilbert and Churchill (2001), together with Davidson (2003), argue that misrepresentation is a gray area in the ethical concerns of marketing. Gilbert and Churchill (2001) suggest the absence of strict wordings forbidding misrepresentation and hiding of information encourages the practice. Consequently, marketing stakeholders should clearly define ethical boundaries.

There are a number of ways through which consumers are misled during a marketing campaign. Davidson (2003) argues that marketing in the fast food industry involves deceptive techniques like associating the brand with icons. A similar opinion is shared in the current study given that more than 705 of the participants hold the opinion that McDonald’s tends to associate its products with celebrities. Such misleading marketing gimmicks are not forbidden in most codes of conducts (Palmer 2000). The same explains why companies like McDonalds will engage in such practices (Clemes & Burn 2000).

Many companies tend to carry out direct marketing. According to Davidson (2003), direct e-mails and telemarketing amounts to the invasion of privacy. However, direct marketing also involves making campaigns that target vulnerable groups like the young and elderly. The toy strategy used in McDonald’s Happy Meal campaign is one such avenue. The company lures children to buy extremely unhealthy foods through toys. It is unfair that such a campaign ignores the parents of such children. Davidson (2003) suggests that the same is another example of the ethical dilemmas which present themselves when developing an ideal marketing strategy.

Marketing plans become unethical when there is a clear violation of consumer safety demands. The study by Saucier (2008) found that fast food companies are the main culprits. In the current study it is clear that there is little priority given to safety standards. Figure 4 illustrates that more than 50% of the participants hold the opinion that fast food companies rarely make consumer safety a high priority. 44% of the participants are of the view that fast food related companies regard consumer safety once in a while. An equal number suggest that the same is rarely a consideration. On average 40% of the participants view fast food companies do not take consumer safety seriously. Marketers ought to evaluate the degree of responsibility they take due to the harm caused by the products (Saucier 2008).

Consumers also have a role to play regarding the safety of the products purchased. Saucier (2008) argues the shortcoming, in this regard, is the absence of clarity in making a choice in the market. The misrepresentation and hidden messages pointed out in figure 1 are contributors to the lack of clarity on the part of the consumer. However, marketers can also take their own initiative to set ensure consumers can easily make out a decision on a product by adequately providing the necessary information. Saucier (2008) makes reference to the fast food industry pointing out that, while enjoying the profits made by the easy-to-make such companies should ensure consumer safety is given a top priority.

In the field of marketing, adherence to pricing ethics is an important component in enhancing the relationship between the seller and the consumer. According to Davidson (2003) most marketers come up with predatory pricing which is meant to drive out competition. In certain cases the prices of commodities are set so low to a point that other brands cannot penetrate the market with their high prices. Such a trend can be harmful to the market (Hsu 2012). A healthy market must strike a balance between the profits and the welfare of the consumers. Such a balance is needed to enhance ethical conduct in the field.

In the literature review section, cause-related marketing was cited an emergent ethical concern. Davidson (2003) describes cause-related marketing as one of the numerous ethical dilemmas brought about by the gray areas. In this regard, a society develops a perception of a company based on the of cause impact on customers. To this end, marketing departments responsible for the relationship with a cause are required to manage the same with transparency (Davidson 2003).

Ethical concerns in business are driven by the cost of coming up with a marketing strategy. Lurie (2009) supports the idea of informing the consumers of price fluctuations. That notwithstanding marketer should always consider the ethics behind their policies. Cost implications affect the quality of a product. For instance a company that promotes fresh foods must incorporate storage facilities in their transport. The cost implications, in this regard, spills over to the consumer.

Fast food companies tend to develop stereotypes in their marketing campaigns. In the UAE, Halal products rake in the most sales. McDonald’s is known to sell products which are not Halal assuming that their market is gullible just by the display of the word ‘ Halal ’. Stereotypical campaigns create an opposing message that the consumer will not be part of the happy group unless they purchase the product. McDonald’s relies on this technique to capture the children’s market by using toys (Ellerbach 2004).

Most marketing campaigns insert a hidden message meant to manipulate clients. Smith (2012) argues that such tactics appeal to the metal faculties of a consumer to regarding certain aspects (good or bad) of their product. For instance, when McDonald’s makes an advertisement with a footballer like Lionnel Messi, an impression is created that such foods boost the performance in sport. However, given the calorie levels of fast foods the same couldn’t be any further from the truth.

In 2010, an article appearing on the Voice of America website pointed out to unethical practices of McDonald’s which prompted legal action. According to Baragona (2010), McDonald’s was being sued by a nutritional lobby group for the former’s action of luring children to buy their products using toys. The Centre for Science in the Public Interest (as cited in Baragona 2010) suggests that the toys are a ploy to lure the children into unhealthy eating habits. Such acts are unethical.

The Happy Meal is a children’s special by McDonald’s which dates back to 1979. Baragona (2010) argues that this technique makes use of popular toys, like action figures from television shows. The Centre for Science in the Public Interest (as cited by Baragona 2010) cites a study carried out in 2005 by the Centres for Disease Control and Prevention. The study found that one in every five American child was obese. Unhealthy eating habits contribute to children acquiring diabetes and heart problems. The Centre for Science in the Public Interest (as cited in Baragona 2010) perceives the idea of enticing children with toys as unethical given the health repercussions. In this regard, the misrepresentation outlined in figure 1 becomes clear.

From the results, displayed in figure 3, misrepresentation is common when fast food companies associate their products with celebrities given the 70% response to this opinion. An equally high percentage of the participants create the impression that their products are healthy. The same would explain why McDonald’s would continue to encourage the ‘Happy Meal’ giving the impression that it is okay for children. Also, more than 50% of the participants are of the opinion that an inaccurate representation of ingredients is a common occurrence in the fast food industry. The arguments raised by the Centre for Science in the Public Interest (CSPI) are a reflection of the instances of misrepresentation pointed out in the results section.

The grounds of the Centre for Science in the Public Interest vs. McDonald’s suit are largely due to the nutritional content of the product. According to Baragona (2010), the Happy Meals were found to have an excess of a child’s recommended calorie dose by up to 67%. The contents of this meal include a cheeseburger, French fries and a carbonated drink (soda). Baragona (2010) is quick to add that the soda contains “multiple levels calories and saturated fat. The drink is also found to have day’s worth of sodium coupled by two day’s worth of sugar”.

As already mentioned, the ethical concerns in marketing require an element of fairness. In this regard, Baragona (2010) cites the question raised by CSPI as to the fairness of the company to overlook the parent’s of the children and engage in a direct marketing campaign to the gullible children. A similar perspective is shared by the participants of the current study. 50% of the participants perceive that fast food companies rarely make consumer safety a high priority.

Another question raised touches of the tricks employed in the marketing campaign. To this end, CSPI (as cited in Baragona 2010) raise the question as to the correctness of using deceptive techniques to attract the children’s market. The effects of this toy promotion would also be discussed if the case were to be presented before a jury. In most cases, giant corporations tend to deflect response to such accusations by pointing out the good they engage in. For instance, Baragona (2010) suggest that McDonald’s responded to the claims with the numerous health products they have sold.

McDonald’s are notorious for unethical marketing techniques based on the pricing of their commodity. Based on the study, 15 % of the participants believe that McDonald’s does not adhere to ideal pricing techniques when it comes to the pricing of their commodities. The results are illustrated in figure 1. Borgerson and Schroeder (2002) reiterate that markets in the Middle East demand modesty based on the Islamic teachings. However, McDonald’s pricing disregarded the element of simplicity as demanded for in an Islamic market. The company tends to come up with advertisements, which suggest a he price cut on their products such a move create the impression that the price was place high intentionally.

In general, McDonald’s is seen as one of the major corporations whose ethical concerns, with respect to marketing, demand a review. Rinallo et al. (2013) argue that a shift from unethical marketing practices should be led by the industry leaders. In the fast food industry McDonald’s is a household name. Continued unethical marketing practices tarnish the brand’s name. The effects of such practices are devastating. Rinallo et al. (2013) argue that since there are a lot of gray areas in ethical marketing, mechanisms should be established to prevent further engagement in the practices.

Ultimately, ethical marketing techniques relates to how a company will generate enough goodwill from the market. According to Davidson (2003), the goodwill of a company in a given market is translated into sales. When a company adheres to ethical concerns, the work environment becomes conducive. In this regard, an organisation’s good reputation is passed on to its workforce. Employees with the necessary motivation tend to improve on their performance. Companies that don’t conform to the required marketing ethics destroy their good reputations with their consumer base. It is easier to boost sales numbers than it is to build an organisation’s reputation.

The Impact of Unethical Marketing Practices

When companies engage in unethical marketing practices there is a ripple effect. According to Abbarno (2001), unethical marketing practices have resulted in easy profits for many companies. Companies engage in deceptive advertisement campaigns to lure consumers to their products. Increased volumes of consumers result in high sales. Consequently, companies tend to make profits in the process (Abbarno 2001).

On the flip side, unethical marketing techniques have the potential to ruin a market. When companies resort to low pricing in a market they shut out competition. According to Ayers (2011), markets require competition to ensure consumers experience diversity. In cases where consumer safety is concerned, the lack adherence towards the same contributes to health concerns.

A suitable example is the health risk associated with the ingredient quantities given to children in the Happy Meal product. Some of the health risks associated with unhealthy fast food includes heart disease, diabetes and even cancer. Fast food companies can avoid such situations by making sure that they provide their consumers with adequate information pertaining to the product in reference. The burden of responsibility now shifts to the consumer (Ayers 2011).

The Application of Ethical Theories by McDonald’s

Marketing techniques are informed by a number of theories. According to Ellerbach (2004), some of the theories of ethical marketing include individualism, virtue, Kantian and the utilitarian theories. The absence of a universal code of conduct implies that the ethical actions of an organisation are best evaluated courtesy of the theories of the subject. The theories are essential to the study as they justify whether or not McDonald’s is in violation of expected ethical concerns.

Theory of individualism

The theory of individualism was developed by Friedman. According to Brinkman (2002), an organisation is intended to have returns to its profits. The actions of McDonald’s, based on the marketing strategy, appear to be in line with this theory. The direct marketing to children forces parent to make purchases of the products being advertised. McDonald’s capitalises on this idea because, the parent will buy a product while having taken their child to get the Happy Meal . In this regard, the company has realised double sales at a go. At the heart of the theory of individualism, the business venture must yield profits to itself and the stockholders. Brinkman (2002) suggests that increased sales translate to high profits. Based on this theory, McDonalds is well within the ethical demands of individualism.

The utilitarian theory

The utilitarian theory envisions satisfactions from industry stakeholders. Drawing understanding from the discussion at hand the industry stakeholders include the staff, management and customers of McDonald’s. Hodge et al. (2013) suggest that happiness from all the stakeholders implies that a company is within its ethical demands. In the case of the misrepresentation of the Happy Meal the complainant is not a direct stakeholder. In this regard, an assumption is made that all the direct stakeholders are content with the product. That being the case, then McDonald’s is seen as having adhered to ethical marketing demands.

Evidently, when the children go to a McDonald’s outlet they can acquire toys. Parents love the idea of seeing their children in a fun mood. Consequently, the entire experience translates into sales for the company. High profits suggest that employees get to be given a better pay (Hodge et al. 2013). The same also translates into plenty of other employment opportunities. The net results are stakeholders who are happy with their organisation. Again such results indicate that the company was squarely within the ethical demands.

The virtue theory

The virtue theory calls for a good character on the part of a marketer. To this end, issues like honesty and justice become an integral part of the theory (Borgerson & Schroeder 2002). The trends of McDonald’s and with respect to this theory can be seen as unethical. The company is deceptive in the manner through which they advertise their products. A common example is the now famous Happy Meal where the direct marketing to kids is done without an explanation of the health ramification.

In terms of the nutritional content of their products, McDonald’s is honest in pointing out the ingredients of the Happy Meal . The argument as to low nature of the nutritional value of the food places the responsibility on the parents. A parent has a responsibility to evaluate the nutritional value of whatever they are purchasing. To this end, the power to determine what is good for a child is the sole responsibility of their parents (Waller 2012). In this regard, the company is ethical in the sense that honesty, as to the nature of their product, is evident.

Kantian theory

The Kantian theory is advanced under the premise that people should engage in activities for the right reasons. According to Hsu (2012), the Kantian theory compels marketers to examine their customers more as people and not just statistics. Most marketers operate under the principle where the end justifies the means. However, the Kantian theory is a departure from such an ideology. The theory compels marketers to develop strategies based on some sense of rationality. The theory advances the element of consistency in the execution of organisational objectives.

In terms of consistency, the company is in line with this theory. According to Baragona (2010), the company has consistently maintained their concept of providing toys and play grounds to children who are a huge market segment. However, the company fails when it comes to ensuring that rational decisions are arrived at by the consumer. One way through which this can be achieved is by ensuring all their products outline the respective nutritional information. In so doing, the consumer is allowed to make an informed decision based on the information provided to them.

The Kantian theory demands that a marketing strategy should be respectful. Based on the study and literature review there is no record of McDonald’s engaging in a marketing campaign that is vulgar and disrespectful. All the advertisements, carried out for the company, are always respectful and mindful of foul language. Respects transcends to cultural demands of a certain people (Chaar & Lee 2012). In the UAE, the McDonald’s chain is mindful of religious holidays like Ramadhan by not exposing the locals to temptation of food during the day.

Based on the information outlining the demands of the Kantian theory, McDonald’s appears to fair well in all of them. However, the motivating factor behind luring children using toys is not out of the goodwill of the company. The desire is to ensure that maximum profits are realised from the sales. Hsu (2012) suggests that the techniques used in marketing may fail the ethics text due to the numerous gray areas.

Chapter Summary

The chapter provides a discussion into the various ethical and unethical aspects of marketing in the fast food industry. The crux of this chapter relies on the results obtained from the questionnaires administered to the participants of the study. Additional information is drawn from the literature review. To this end, the discussions respond to the research questions mentioned in chapter one. The next chapter provides a summary of the entire study. Chapter five provides recommendations to McDonald’s and at the same time concludes the study by pointing out areas that require further research.

In this chapter, a review of the problem statement is provided. In this regard, a suitable marketing technique for McDonald’s is provided. According to Rodwin (2010), ethical marketing strategies are real. Companies do not have to border on the gray areas but can develop marketing techniques based on sound practices. The recommendations provided are an indicator that other companies in the fast food industry can also carry out the same to avoid losing credibility.

Developing an Ethical Marketing Plan

Ethical marketing is all about the tools used to develop a strategy for use in the present and times to come. The first step to ethical marketing is to decide the objective of the strategy sought after (Hsu 2012). The tools of ethical marketing are essential in revising the already existing techniques to ensure that the brand image is maintained at the expense of making profits.

The first recommendation is an analysis of the company, its customers and the market segment. Based on the results of this study, McDonald’s does not appear to have a comprehensive analysis of the three parameters. According to Waller (2012), there are plenty of advantages in engaging in an ethical marketing campaign. However, companies like McDonald’s shun such methods since profitability is usually at stake.

The study further recommends that McDonald’s engages in an extensive market research. Rinallo et al. (2013) suggest to a possibility of ethical marketing resulting in profitability. However, this result is only attainable with intensive market research. For instance, McDonald’s can try to penetrate the organic food market by developing suitable packages like salads. Such a move will attract consumers who prefer healthy food but lack any in menus of fast food outlets.

The study recommends that McDonalds should always use ethical marketing features. Ethical marketing is determined by the features which an organisation intends to utilise in its campaign (Alserhan 2011). The abstraction of ethics calls for reliance on professionalism and the necessary competence. In this regard, McDonald’s should engage the services of professional marketers to develop ideal marketing features. Marketing gaffes like associating sports personalities with unhealthy food products will be avoided if ideal marketing features are employed by a company.

McDonald’s can achieve this objective by avoiding direct marketing, to children, products with high sugar and calorie content. According to Ellerbach (2004), children don’t eat a lot of food to this end, fast food outlets have the advantage of coming up with portions of food that don’t have inflated content of unhealthy ingredients. Ethical marketing features therefore call for a delicate balance between that which is true and the persuasion of the consumer.

As already mentioned, McDonald’s is a market leader in the fast food industry. In light of this, ethical marketing should not be something they should straggle over. Lurie (2009) points out that, market leaders have the advantage of pick up ethical techniques and incorporate them in their strategies. The issue of cost should not be an impediment given the financial muscle that such companies possess. In light of this, the study recommends that McDonald’s should develop marketing strategies that acts like a benchmark for emulation in the fast food industry. The recommendations made in this section are a response to the research questions raised at the preliminary phase of the study.

As mentioned earlier, the study is a holistic overview of marketing and by extension market plan development. The adoption of McDonald’s as a reference point worked in favour of the thesis statement suggested. The results of the study point out that the consumers respect for the brand is dwindling. The thesis statement sought to establish whether unethical practices are a threat to a brand’s image and credibility. Sirgy and Lee (2008) suggest that the evaluation of ethical issues in business is easier done when an analysis is carried out on the market leaders. The unethical practices, unearthed in this study contribute to a degradation of the credibility and image of McDonald’s.

The image of an organisation is smeared when the brand is found to be engaging in activities that do not promote integrity and honour (Smith 2012). For instance, when McDonald’s, an industry leader, misrepresents the facts about their products such is seen as preying on the gullibility of their consumers. Although the fine print of required ethics might be faint, the same calls for a judgment call on the part of the marketers. Prior to the development of a marketing plan, marketers should weigh on the ripple effect of such an action with respect to the image of their organisation.

The discussions in this paper suggest that the subject of ethics in marketing is not easy to crack. According to Ayers (2011), what might appear ethical to one party might be unethical to the other. For instance, the theories of ethical marketing suggest that McDonald’s (in the Happy Meal suit) were largely engaged in ethical practices. However, the same was not reflected in the response given by the participants to this study.

The study found that misrepresentation was a common phenomenon in the marketing strategy of McDonalds. Marketing techniques of such a nature tend to destroy the trust levels between an organisation and its customers (Rodwin 2010). From the theory of individualism profitability is seen as the motivating force behind what appear to be unethical practices. However, the loss of trust from consumers poses a threat to the intended profits. To this end, organisations need to develop a hybrid of marketing techniques. Such techniques should ensure that the marketing strategies will not interfere with customer relations.

In conclusion, acts like misrepresentation and withholding information tend to erode the trust between a company and its customers. The same supports the view, of the thesis statement, that unethical marketing practices destroy a brand’s image and further reduce its credibility. The same is due to the loss of trust from the unethical practices (Hodge et al. 2013). Further research is called for to examine the gray areas of ethics. The same would set the stage for a universal code of conduct. Such a move will protect brands from unknowingly engaging in unethical practices.

The chapter evaluates the problem statement with regards to unethical marketing practices at McDonald’s. Necessary recommendations for the development of ethical marketing strategies are outlined in this chapter. According to Rodwin (2010), ethical marketing strategies are real. Companies do not have to border on the gray areas but can develop marketing techniques based on sound practices. The recommendations suggest that fast food companies can engage in ethical marketing practices without compromising on their brand image.

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Bibliography

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• McDonald's and It's Critics: 1973- 2009
• McDonald's Franchise Model
• McDonald's Corporation Marketing Strategy
• Performance Management in McDonald’s
• McDonald's Benefits Package
• Maintaining Ethical Standards at the Workplace
• Google Company's Ethical Analysis
• Sustainability and Ethics in Business Management
• Governance and Business Ethics in Information Technology
• Corporate Social Responsibility in Zygmunt Bauman’s Book

ANALYSIS: Three Takeaways from McDonald’s Toxic Culture Debacle

By Kate Azevedo

In 2018, McDonald’s Corp. faced a crisis in governance after allegations of a widespread culture of sexual harassment and employee misconduct surfaced. McDonald’s implemented several initiatives to remedy its workplace culture. Specifically, in 2019, the board took severe action by terminating CEO Steve Easterbrook and Chief People Officer David Fairhurst for their misconduct toward female subordinate employees.

But two significant developments in January—one judicial and one regulatory—show that repercussions from the matter are still ongoing. These rulings have redefined precedent for a corporate officer’s duty of oversight and heightened requirements for a company’s proper SEC corporate disclosure. The McDonald’s story ...

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McDonald's Failed To Protect Workers Against Violent Customers, Lawsuit Says

Alina Selyukh

A lawsuit by 17 McDonald's workers accuses the fast-food chain of "undermining safety" with late-night work, store design changes and inadequate training. Nam Y. Huh/AP hide caption

A lawsuit by 17 McDonald's workers accuses the fast-food chain of "undermining safety" with late-night work, store design changes and inadequate training.

Updated at 10:43 a.m. ET

A group of McDonald's cooks and cashiers is suing the fast-food chain over the company's handling of what the lawsuit presents as a "nationwide pattern" of customers attacking and harassing workers.

The lawsuit , filed Thursday by 17 workers from the Chicago area, alleges that McDonald's and its franchisees have failed to protect workers by extending work hours late into the night, designing stores in ways that left workers more vulnerable, and providing inadequate security training and support.

"They and their coworkers face a daily risk of violence while at work," the lawsuit says, accusing McDonald's and its Chicago-area franchisees of being "negligent in failing to protect their workers from this risk."

In a statement, McDonald's said it "takes seriously its responsibility to provide and foster a safe working environment for our employees, and along with our franchisees, continue to make investments in training programs that uphold safe environments for customers and crew members. In addition to training, McDonald's maintains stringent policies against violence in our restaurants."

McDonald's Is Sued Over 'Systemic Sexual Harassment' Of Female Workers

The fast-food chain in August announced a new anti-harassment and safe-workplace training program for U.S. workers following a wave of allegations of sexual harassment of female workers. McDonald's last week said it rolled out the program to all corporate-owned restaurants and was "encouraged" by the progress getting franchisees to implement it.

More than 90% of McDonald's restaurants around the world are owned by franchisees, and Thursday's case is the latest attempt by workers and labor groups to hold McDonald's accountable for what happens inside its franchise stores. The workers named in the case are employed at both corporate-owned and franchise locations and have the backing of the labor group Fight for $15.

In lawsuits over the years, McDonald's has argued that it should not be held responsible for franchisees and their employees. In October, a federal appeals court in California ruled that McDonald's did not have enough control over franchisees' employees to be considered a joint employer that is liable for their treatment.

Thursday's lawsuit , filed in Cook County, Ill., alleges that the attacks and harassment described by workers were "the result of choices made by McDonald's that undermine safety."

Workers argue that they face higher risks of violence and attacks by customers because of the physical design of McDonald's stores, which is determined by the corporate headquarters. The lawsuit points out that McDonald's selects stores' locations and usually owns or leases the property.

In the suit, workers recount how lowered and split checkout counters have allowed people to jump or simply walk into the kitchen and work areas, to punch, threaten or throw things at workers. The lawsuit describes several instances of someone climbing on top of the counter and waving a gun.

McDonald's Fired CEO Is Getting Millions, Putting Spotlight On Pay Gap

Three of the female workers in the lawsuit said men exposed themselves and verbally assaulted them while they cleaned store bathrooms. The workers say they could not lock the bathroom area for cleaning and the bathrooms were not visible to the rest of their team.

The lawsuit also takes aim at the drive-through window design, which is open to allow physical contact between customers and workers. Several workers described people reaching or even climbing through to attack workers.

Several workers allege that their managers discouraged employees from calling the police and did not do so themselves — and in some instances laughed in response to reports of threats or harassment, according to the lawsuit.

Last week, a former worker sued McDonald's and one of its Michigan franchisees over "systemic sexual harassment" of female employees that she alleges the company has failed to address. The case seeks class-action status and has the support of the American Civil Liberties Union and the Time's Up Legal Defense Fund.

Lawyers representing workers say more than 50 claims and charges of harassment of female employees by male co-workers are pending against McDonald's in courts and at the Equal Employment Opportunity Commission.

Their cases drew new focus this month when McDonald's fired its CEO, Steve Easterbrook, over a consensual relationship with an employee. He is not accused of sexual harassment, but the relationship violated company policy. Still, Easterbrook is receiving a multimillion-dollar exit package .

In May, McDonald's workers across the U.S. staged protests against low pay and the company's handling of alleged sexual harassment.

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May 22, 2019

Behind the Arches: How McDonald’s Fails to Protect Workers From Workplace Violence

This report shows how McDonald’s is failing in its legal duty to provide employees a safe work environment. In particular, the analysis demonstrates that McDonald’s long hours of operations—the longest among its national competitors—regularly put thousands of workers at risk due to the high levels of violence associated with late-night retail.

Introduction

In January 2019, a 16-year-old was working at the drive-thru of a McDonald’s in Camden, South Carolina when a customer drove up to her window, began an argument, and threw hot coffee in her face. The customer complained about waiting too long for an order of large fries. [1] That same month in Phoenix, Arizona, a customer threatened a McDonald’s employee with a shotgun when he did not receive hot sauce with his order. [2] In St. Petersburg, Florida, another McDonald’s customer was charged with battery after reaching over the counter and grabbing an employee because there were no straws at the condiment station. [3] Again in January—this time in Omaha, Nebraska—McDonald’s workers faced a gunman who demanded that they turn over the store’s cash. This marked the store’s second robbery at gunpoint in just six weeks. [4] And later in April, a 19-year-old worker in a Des Moines, Iowa McDonald’s was stabbed by two customers, angry over an $11 order, when the employee stepped outside for a break. [5]

For McDonald’s workers across the country, these anecdotes are not unusual or unique; they tell a bigger story. These narratives are indicative of a pattern of violence that occurs in their workplaces on a routine basis—from belligerent customers irate over missing ketchup or straws, to armed criminals demanding cash, and fist fights among customers in the lobby. In the last three years alone, the media has covered more than 700 incidents of workplace violence at McDonald’s stores across the United States. Yet, as shown below, the incidents covered by the media are only a small fraction of the total number of violent crimes that occur at McDonald’s stores each year. Verbal threats, harassment, and other types of assault often go unreported to the authorities. Regardless of media attention, these incidents of workplace violence regularly place both workers and customers at risk.

According to the Occupational Safety and Health Administration (OSHA), workplace violence includes physical assault, threatening behavior, and verbal abuse that occur in a workplace setting. [6] This report outlines the extent and severity of workplace violence at McDonald’s stores. It includes an analysis of violent incidents reported in the media, violence data from St. Louis, Missouri and Chicago, Illinois, and interviews with current and former McDonald’s workers who have experienced violence while on the job.

This report shows that McDonald’s is failing in its legal and moral duty to provide employees a safe work environment. In particular, the analysis shows that McDonald’s long hours of operation—which are the longest among its national competitors—regularly expose thousands of workers to risk due to the high levels of violence associated with late-night retail. [7] Interviews with workers suggest that McDonald’s is not sufficiently training staff or equipping its stores consistently with violence hazard controls, such as cash handling procedures, necessary visibility, panic buttons accessible to all staff, and safe drive-thru windows to prevent violence or at least minimize the number and severity of such incidents. Late-night hours, lack of training, and a lack of adequate hazard controls—combined with hundreds of reported violent incidents, and worker accounts of violence across the country—implicate McDonald’s in dangerous workplace neglect.

McDonald’s is the largest fast food company in the United States and the world. [8] In 2018, its nearly 14,000 U.S. stores generated $38.5 billion in sales, accounting for approximately 15 percent of all fast food sales in the country. [9] McDonald’s is the second-largest private sector employer in the United States and the world, with 1.9 million employees globally. [10] McDonald’s franchises 95 percent of its U.S. stores. [11] As the franchisor, McDonald’s exerts a high level of control over its franchisees’ operations, with detailed rules for all aspects of store design and operations, including required operating procedures, methods of inventory control, bookkeeping and accounting, days and hours of operation, business practices and policies, and advertising, among others. [12] McDonald’s is also one of the biggest real estate companies in the world. Under conventional franchising agreements, McDonald’s, in nearly all instances, owns or leases the land and buildings, which it leases or subleases to franchisees. [13]

McDonald’s puts fast food workers at risk

An analysis of the large volume of media-covered incidents reveals a disturbing pattern of violence that regularly takes place at McDonald’s stores. The media have covered at least 721 incidents of workplace violence that have taken place in a three-year period ending on April 15, 2019 at hundreds of McDonald’s stores across 48 states and Washington, D.C. [14] These incidents include shootings, robberies, sexual assaults, battery, and other forms of harassment and abuse. Many of the incidents stem from customers’ anger over petty grievances, such as a lack of straws, waiting too long, or missing items from their orders.

Similarly, crime data from St. Louis, Missouri also shows that the media only cover a fraction of all incidents that take place at the city’s McDonald’s stores. The St. Louis Metropolitan Police Department crime reports database lists 67 violent incidents occurring at city McDonald’s in the three-year period ending on April 15, 2018, compared to only three reports of violence at McDonald’s in the local news over the same period. [17] The three incidents covered by the media involved armed robberies, two of which occurred at the same store, which has been the site of five other robberies since April 2016. [18]

This is not the only store repeatedly hit by violent crime. For example, another St. Louis store just outside the city’s downtown area experienced 26 violent incidents in the last three years, including three robberies, three sexual offenses, and 20 assaults. [19] According to Elvira Gonzalez, a worker from a McDonald’s store in Chicago, she and her coworkers regularly experience violence on the job: “I have witnessed so many fights and robberies. Once, a man hit me on my back with a yellow wet-floor sign because he wanted to use the bathroom that I was cleaning. Another time, a customer got into a fight with the cashier and hit her. I almost got hit too but I ran and hid under a table. Another time, some men came into the store and stole my purse with all of my belongings.” [20] Ms. Gonzalez’s store has seen almost a dozen gun-related incidents in the last three years. [21]

“I have witnessed so many fights and robberies. Once, a man hit me on my back with a yellow wet-floor sign because he wanted to use the bathroom that I was cleaning.”

-Elvira Gonzalez, Chicago, IL

Gun violence appears to be pervasive at McDonald’s stores. Of the 721 media-covered incidents, guns were involved in 72 percent. Moreover, attackers used guns against store employees in 42 percent (306 incidents) of the covered incidents to threaten, pistol-whip, or shoot McDonald’s employees. In a notable case, a man shot the manager of a McDonald’s in Altamonte Springs, Florida in the neck after they got into an argument over a frappé order. [22]

Gail Rogers, a McDonald’s worker in Tampa, Florida, described her experience with gun violence at her job: “I was working in the lobby wiping tables when I noticed a customer using their personal cup to get soda out of the machine. I approached him and told him that he could not do that. At that point, the customer opened up his jacket, showed me a gun and put his hand on it. I backed away slowly, terrified for my life.” [23]

Violence at McDonald’s locations takes place in all areas of the store, from the lobby and bathrooms to the drive-thru and parking lot. Of the media-covered incidents analyzed, 62 percent occurred, at least in part, inside the store and 20 percent involved the drive-thru. Drive-thru incidents include cases where individuals attack workers or customers at the drive-thru window, gain access to the building by climbing through these windows, or commit armed robberies by brandishing a gun or some other weapon at drive-thru workers. [24] Forty percent of incidents occurred, at least in part, in the parking lot area, placing workers who exit the store—whether to bring food to drivers, discard trash, or just take a break—at risk. [25]

Violent incidents at McDonald’s occur at all times of the day, as Figure 1 shows. According to an analysis of the media-covered incidents of violence for which a specific time was reported, nearly a third of them occurred during the morning or afternoon. [26]

However, incidents that take place late at night—between 10 p.m. and 4 a.m.—account for a disproportionate share of the total incidents covered by the news media. Specifically, late-night incidents account for 40 percent of all media-covered incidents. Compared to other times of day, violent incidents were 40 percent more likely to occur during late-night hours than evening hours, and 145 percent more likely to occur than in the morning or afternoon.

Late-night crime may be associated with McDonald’s’ policies of extended hours of operation, which are the longest among its national competitors. [27] McDonald’s made it a priority to improve the stores’ convenience by extending hours of operation in its 2003 Plan to Win that the company credited with turning around the lackluster performance of previous years. [28] After the longer hours were introduced, McDonald’s executives continuously cited the move as a key driver of sales growth. [29] From 2003 to 2007, more than 90 percent of McDonald’s stores extended their hours, such that by 2007, nearly 40 percent of McDonald’s stores operated 24 hours per day, compared to less than 1 percent of stores in 2002. [30]

Today, McDonald’s stores are open, on average, just under 21 hours per day in the United States, as depicted in Figure 2. [31] McDonald’s average hours of operation are nearly three hours longer than Taco Bell and Burger King, which have the second and third-longest hours of operation of any national chain in the industry. Sonic, Chick-Fil-A, and Wendy’s operate their stores 14 to 17 hours per day, on average. Approximately 40 percent of McDonald’s stores are open 24 hours, compared to 6 percent of Burger King stores and 1 percent of Taco Bell and Wendy’s stores. Sonic and Chick-Fil-A do not operate 24-hour stores.

The risks of workplace violence are well known

According to the National Institute for Occupational Safety and Health (NIOSH), violence is a substantial contributor to death and injury on the job, especially in the retail and service industries. NIOSH and OSHA have identified a number of factors that put late-night retail workers at risk for workplace violence. The risk factors that apply to late-night retail are virtually the same as those that apply to late-night fast food operations, including direct contact with the public, exchange of money, working alone or in small numbers, working late at night or during early morning hours, and a lack of worker training in potential security hazards and how to protect themselves. [32]

Further, OSHA’s Young Workers Initiative, launched over a decade ago, and its E-tool on protecting young workers in restaurants, also clearly identify workplace violence as a key hazard facing workers in restaurants and provide solutions for employers to implement, with specific recommendations for protecting workers in drive-thru areas of restaurants. [33]

Late-Night Workplace Violence

NIOSH’s research informed the development of OSHA’s Guidelines for Workplace Violence Prevention Programs in Late-Night Retail Establishments , which the agency first published in 1998 and last revised in 2009. [34] In this publication, OSHA recommends a number of commonsense protections that employers can implement to help protect workers from risk of injury or death from workplace violence, including improving visibility and surveillance, controlling customers’ access, developing emergency procedures to use in case of a robbery or security breach, using drop safes and limiting the amount of cash in registers, and increasing staffing levels at stores with a history of robbery or assaults. These guidelines also recommend implementing a strong follow-up program for workers who experience an incident to help them to deal with any psychological trauma; and training and education to ensure that all staff members are aware of potential security hazards and how to protect themselves and their coworkers through established policies and procedures. [35]

In addition to OSHA’s recommendations, various state and local governments have implemented legislation since the 1990s aimed at preventing assault for late-night retail workers. [36] For example, Washington and Florida adopted regulations for retail establishments with late-night operations, focusing on the training of employees and addressing aspects of the retail environment that may affect the risk of robbery. [37]

Many of these public initiatives, and the research underlying them, date back to the 1980s and 1990s, prior to the rise of late-night fast food in the mid-2000s. In 2007, however, a USA TODAY report detailed how the extended hours at McDonald’s and its competitors were driving an increase in violence against fast food workers. [38] The report found that in 2006, the number of homicides in the fast food industry was slightly higher than homicides of taxi drivers, and slightly less than homicides in convenience stores, at a time when both industries had a greater reputation for late-night violence risks. A security consultant and security manager for Wendy’s told USA TODAY that “increasing store hours increases the hours that the bad guys can rob you…Darkness to dawn is the highest time of exposure to armed robbery.” [39]

The human cost of workplace violence

Workers who endure episodes of violence, as either victims or witnesses, may experience both physical and psychological injuries, which can have a deleterious effect on their work and personal lives. Even though these workers are injured as a direct result of workplace hazards, they have few rights or protections in the wake of violent incidents. In the United States, the majority of fast food workers receive no paid sick leave or health insurance. [40] As a result, these workers are at the mercy of managers who may pressure them to continue working immediately after a traumatic incident.

Physical Injury

Violence in the workplace can have debilitating effects on the people involved. The most visible and obvious of these involve physical injury or death. Of the 721 incidents covered by the media over the three-year period discussed earlier, 39 percent resulted in the physical injury of at least one person, and 12 percent in death.

Workers who have been injured may be forced to take time away from work to seek medical attention, heal, and regain strength and wellness. According to NIOSH, shooting and stabbing victims typically take up to a month away from work, while other minor injuries usually force workers to take between three and five days off of work. [41]

Psychological Injury

Experiencing or witnessing workplace violence can also have a devastating impact on the victim’s wellbeing, sense of security, and quality of life. Victims may experience emotional shock and denial, which can worsen decision-making abilities and hinder active participation in daily life. Victims may also experience acute stress disorder or post-traumatic stress disorder, both of which can lead to difficulty sleeping, anxiety, and/or additional symptoms of distress. [42]

Graciela Rivera, a McDonald’s worker from Chicago who was assaulted while cleaning the store’s bathroom, explains: “The scariest thing that happened at work occurred while I was cleaning the bathroom and a man came in before I was done. When he came in, I tried to hurry out but I accidentally dropped the broom. When I bent down to pick up the broom, the man urinated on me, exposing his penis, and also said obscenities to me. I told my managers but they didn’t do anything. One manager just said that I’m always complaining about something.” While the man’s actions did not cause lasting physical harm, the incident caused significant emotional distress. “I felt humiliated. I felt like they didn’t take what happened to me seriously. I asked the manager if they were waiting for me to get seriously injured in order to actually do something to protect us,” said Ms. Rivera. [43]

“I was eating in the lobby of the restaurant near the front of the store when a group of people started fighting. One guy then went around the lobby threatening everyone while reaching into his pocket and signaling that he had a gun.”

– Darrell Miller, Kansas City, MO

Some workers report that McDonald’s managers do not allow employees to go home or take time off work to cope with their often-terrifying experiences. In 2018, Atlanta local media covered the story of a McDonald’s employee who was forced to continue working after she had a gun pointed in her face: “I can hardly sleep. If I do, it’s just flashbacks. I was traumatized because I never endured a situation like that before, period.” The worker told local WBS-TV Atlanta that her boss made her experience more difficult by pressuring her to stay on the clock: “I wanted to go home to my kids because I could have lost my life that day. My kids could have been motherless. [My managers] told me that they have been through storms, tornadoes, floods. I didn’t want to leave because I’m afraid of losing my job. If I walk out and lose my job, who is going to care for me and my kids?” [44]

Brenda Carbajal, a McDonald’s worker from Chicago, was disciplined by her manager for leaving the store after experiencing a second gun-related incident within a span of a few months. “I was coming back from my lunch break when all of a sudden the girls working at the front of the restaurant started running and yelling ‘He has a gun!’ and then I saw the man as he was walking around pointing the gun at my coworkers.” Ms. Carbajal and some of her coworkers hid in the freezer until the gunman left and resumed work once the police came to her store and investigated the incident. In the second incident, Ms. Carbajal witnessed a man pull a gun on a woman who was in the lobby as the woman was screaming for help. “They wanted us to keep working after the incident was over but I was so scared. The stress made me feel sick and all I wanted was to go home. I asked my manager if I could go home and she said no, but I decided to leave anyway. The following day when I came to work, they wrote me up for leaving.” [45]

“ I was coming back from my lunch break when all of a sudden the girls working at the front of the restaurant started running and yelling ‘He has a gun ”

– Brenda Carbajal, Chicago, IL

As Ms. Carbajal’s experience shows, violent incidents impact not just those who are directly victimized, but also those who bear witness to the violence. Darrell Miller, a McDonald’s worker from Kansas City, Missouri who witnessed a shooting at a McDonald’s, said:  “I was eating in the lobby of the restaurant near the front of the store when a group of people started fighting. One guy then went around the lobby threatening everyone while reaching into his pocket and signaling that he had a gun. The fight then spilled outside and then people started shooting.” Mr. Miller added, “That was one of the worst and scariest experiences of my life. Everyone at the restaurant was scared for their life.” [46]

Maria Paez, a worker from San Francisco who also witnessed a shooting outside a McDonald’s store, recounted her experience: “I was leaving the store and suddenly someone started shooting outside of the store. I just ran and hid behind a car and covered my head. It was very surreal and for a moment I thought that I was dead. Ever since that incident, I feel traumatized. I don’t feel safe at work at all. I get really scared every time I hear customers arguing or yelling. You never know when someone might pull out their gun and start shooting.” [47] å

McDonald’s is not taking safety seriously

Under OSHA’s general duty clause, employers are required to provide a safe work environment for employees that is free of known hazards. [48] As a franchisor, McDonald’s exerts a high level of control over its franchisees’ operations, with detailed rules for all aspects of store design and operation, including required operating procedures, methods of inventory control, days and hours of operation, bookkeeping and accounting, business practices and policies, and advertising, among others. [49] Despite controlling most aspects of its franchisees’ operations, the alarmingly high number of violent incidents at McDonald’s stores across the country, and statements from McDonald’s workers, strongly suggest that the company has failed to effectively establish and enforce a standard violence prevention program across all of its stores. McDonald’s workers report a lack of standardized prevention tools such as accessible panic buttons and drop safes as well as lack of violence training and post-incident follow-up.

Interviewed workers report that they receive little to no training in violence prevention or instruction on how to deal with incidents when they arise. Martina Ortega, a worker from Chicago, explained: “I was in the kitchen when a woman who was in the lobby started screaming. The woman then jumped the counter and started grabbing the hot coffee pots and throwing them around. The woman then made her way to the back and started grabbing the bread and the biscuits and also threw them all around before she started removing her clothes. My coworkers and I ran outside. We had no idea what to do.” Ms. Ortega, who has worked at the same McDonald’s location for three years, also noted that she and her coworkers never received any violence training: “McDonald’s management should really be training us on how to deal with violent incidents, especially the cashiers who work face to face with the customers. We should be able to know where we need to run or what to do.”

Ms. Ortega’s case also suggests that supervisors and other store managers get little to no training in dealing with these types of incidents. She reported that after an incident took place, a store manager told employees that they could defend themselves by throwing hot coffee or hot oil at an attacker. Ms. Ortega, who understood that escalating situations might make them worse, pushed back against her manager’s advice: “That woman who attacked us obviously had some mental health issues. If we had thrown hot coffee or hot oil at her, we could have hurt her and maybe made her more aggressive.”

Interviewed workers report that they are often asked by management to confront patrons who are loitering, acting inappropriately, or are present at closing time, and escort them out of the store. Yet these workers have not received appropriate training on how to handle customers who may be belligerent, threatening, or who otherwise refuse to leave. In many cases, workers who have attempted to escort such customers out of the store have been attacked and, in some cases, killed. Christian McCoy, a former McDonald’s worker from a store in downtown Chicago, reported that on one occasion, his manager instructed him to escort out a homeless person who was soliciting money in the store’s lobby. When Mr. McCoy asked the man to leave, the man verbally threatened and then punched him. [50] This incident is reminiscent of a 2015 tragedy in which a 28-year-old McDonald’s employee was stabbed multiple times in the chest and neck by a vagrant whom the employee escorted from a Bronx, New York store. He died from injuries sustained in the attack. [51]

In addition to failing to provide training, many stores do not follow recommended hazard controls or administrative procedures around cash handling, visibility, and incident reporting. For example, McDonald’s does not appear to have a common set of cash handling procedures, including mandatory drop safes and limiting the amount of money held in cash registers, which reduces the amount of cash that employees can access, making these stores less valuable targets for thieves. [52] Cash control policies are one of the most effective robbery prevention methods. In the 1980s and 1990s, cash control and other hazard prevention policies helped convenience store chain 7-Eleven reduce robberies by 70 percent. [53]

Other safeguards, such as maintaining clear lines of sight such that employees have an unobstructed view of the street, and so police can observe what is occurring inside the store from the outside, are regularly ignored by McDonald’s, whose store windows are often plastered with marketing materials that obstruct visibility. [54] Moreover, McDonald’s stores with large drive-thru windows make it easy for criminals to gain access to the building, even if lobbies are closed. This is especially hazardous during late-night hours of operation when stores are run by skeleton crews. In a series of robberies in the St. Louis area in 2016, robbers took advantage of this vulnerability to enter and rob four different McDonald’s stores during late-night or early-morning hours of operation. [55]

There also appears to be minimal and inconsistent reporting of threats or acts of violence to authorities. Workers say that incidents are often not reported to authorities unless they result in serious physical injuries, significant property damage, or theft. Elvira Elena, a Chicago McDonald’s worker, said: “When we want to call the police, management just blows us off and says, ‘What do you want me to do? We will get in trouble if we call the police.’”

McDonald’s workers interviewed report a general disregard for worker safety at the stores they work at. By failing to institute proper violence prevention programs—from training and physical safeguards, to procedures for reporting—McDonald’s lack of a coordinated and effective plan places workers at risk and makes them feel powerless and vulnerable. Sonia Acuña, a worker from Chicago, explained: “I have raised my concerns and complained to my managers, but they won’t do anything. McDonald’s won’t do anything. We feel like we have to defend ourselves.”  

Recommendations and conclusion

McDonald’s inadequate attention to the risk of violence and its consequences has invited danger into the workplaces and lives of McDonald’s workers across the country. McDonald’s needs to take the hazards of violence seriously and create a comprehensive program that covers all workers who wear the McDonald’s uniform. Specifically, the company needs to create a systemwide culture of violence prevention aimed at reducing the risk of violent incidents and minimizing the severity of physical and psychological injuries sustained by workers.

Below are recommendations that are informed by OSHA’s recommendations for workplace violence prevention programs, including the agency’s specific recommendations to protect workers in late-night retail and restaurants. Adoption of these practical measures can significantly address these serious threats to worker safety at McDonald’s. [56]

Recommendations

Hazard prevention.

Hazard prevention strategies can be classified into two categories: (1) engineering and environmental controls, and (2) administrative and work practice controls.

The following engineering and environmental controls should be implemented across the McDonald’s system:

• Improve visibility such that signs and other marketing materials located in windows do not block the line of sight for workers to the outside, or from authorities looking into the stores;
• Install a comprehensive surveillance and security system that includes video cameras, alarms, and panic buttons that all workers can access, along with drop safes—that employees cannot access—to limit the availability of cash and ensure that these security measures cover all work areas, including back entrances and trash receptacles;
• Install safer drive-thru windows that prevent unauthorized individuals from entering a store. In high-risk locations, such as stores with a history of robberies or assaults, and stores located in high-crime areas, install bullet-resistant drive-thru windows or pass-through windows;
• Prominently display security signage , such as cash-drop policies or CCTV monitoring, at all doors and front counters; and
• Implement store design elements that create barriers between employees and customers, thereby controlling customers’ access to the kitchen and other employee-only areas.

Administrative and work practice controls can include the following strategies:

• Ensure that all workers are properly trained on established policies and procedures;
• Adopt proper emergency procedures for employees to use in case of robbery or a security breach. These standard operating procedures should include guidance on when to call the police, when to trigger an alarm, and how to file charges after an incident;
• Increase staffing whenever possible, especially in stores with a history of robberies or in high-crime areas; and
• Require workers to report all assaults or threats of assault to a supervisor, and keep a log of such incidents.

McDonald’s must ensure that all store workers are properly trained in violence prevention policies and procedures to minimize their risk of assault and injury. McDonald’s must provide sufficient resources to ensure that these trainings are conducted by qualified instructors who have a demonstrated knowledge of the subject. Training must include an overview of the risks of assault, recognizing and managing escalating hostile and aggressive behavior, operational procedures designed to reduce worker risk, the location and operation of safety devices and alarms, and policies and procedures for obtaining medical care, counseling, workers’ compensation, or legal assistance after a violent episode or injury. Moreover, McDonald’s should ensure that training is delivered in languages appropriate for the individuals being trained. At a minimum, OSHA recommends that employers provide training annually, or more frequently for establishments with high employee turnover. [57]

In addition to the general training for all staff, McDonald’s should provide supplemental training to supervisors, managers, and security personnel. Supervisors and managers should be able to recognize high-risk situations and make any necessary changes in the physical worksite and/or policies and procedures to eliminate those risks. Where present, security personnel need to be trained in handling aggressive and abusive store patrons, and strategies for de-escalating hostile situations.

Post-incident response

Post-incident response procedures are an essential part of an effective violence prevention program, and they must address the potential for both physical and psychological injury to workers. First, McDonald’s procedures should ensure that workers receive appropriate medical attention, guidance on reporting incidents to the police, and guidance on when to close the premises after an incident. Second, McDonald’s should provide access to free mental health services to workers who experience a psychological injury. Third, to avoid causing further distress to workers, McDonald’s should offer workers’ compensation and paid time off to victimized workers who are unable to return to work immediately after a violent incident due to physical or psychological injury. Lastly, McDonald’s should maintain records of all violent incidents, injuries, illnesses, hazards, corrective actions, and trainings. McDonald’s should use these records to evaluate the effectiveness of its violence prevention program, determine the severity of risks, and identify ongoing training needs.

Workplace violence is a preventable hazard. And McDonald’s workers—who for years have been raising their voices about low pay, sexual harassment, and other issues—are speaking up about the dangers posed by frequent violence on the job. Workers believe that McDonald’s is not doing enough to protect them from workplace violence and are now starting to call on the company to do better. In the aftermath of an attack on a female employee in St. Petersburg, Florida on New Year’s Eve 2018, workers from that city, along with those in Tampa and Orlando, led a walkout to demand better protection from workplace attacks. [58] “No one should have to fear for their own safety when they report to work each day, but it’s very clear I’m not safe at McDonald’s,” said Gail Rogers, one of the workers who participated in the strike. [59] “At McDonald’s, we’re subjected to all types of behavior that has no place at work. We won’t back down until McDonald’s takes responsibility for protecting all workers on the job.” [60]

[1] Andrea Butler. “Report: Man threw hot coffee in McDonald’s worker’s face after waiting too long for fries.” WACH FOX 57 . January 9, 2019. Available at: https://wach.com/news/local/report-man-threw-hot-coffee-in-mcdonalds-workers-face-after-waiting-too-long-for-fries

[2] Alexander Deabler. “McDonald’s customer threatened employee with shotgun for not getting hot sauce with fries.” Fox News . https://www.foxnews.com/food-drink/mcdonalds-customer-threatened-employee-with-shotgun-for-not-getting-hot-sauce-with-fries

[3] “Florida McDonald’s employees to strike after viral video of St. Petersburg colleague attacked by customer.” Associated Press . January 7, 2019. Available at: https://www.abcactionnews.com/news/region-pinellas/florida-mcdonalds-employees-to-strike-after-viral-video-of-st-petersburg-colleague-being-attacked-by-customer

[4] “McDonald’s robbed at gunpoint.” WOWT NBC Omaha. January 22, 2019.  https://www.wowt.com/content/news/McDonalds-robbed-at-gunpoint-504725831.html

[5] Ian Richardson, Tyler J Davis. “Police release images of 2 men accused of stabbing Des Moines McDonald’s employee over $11 drive-thru order.” Des Moines Register . April 3, 2019. Available at: https://www.desmoinesregister.com/story/news/crime-and-courts/2019/04/03/des-moines-crime-mcdonalds-employee-stabbed-dispute-customer-over-order-police/3351697002/

[6] “Recommendations for Workplace Violence Prevention Programs in Late-Night Retail Establishments.” Presentation. Occupational Safety and Health Administration. Available at: https://www.osha.gov/dte/library/wp-violence/latenight/wpvnightretail.pdf

[7] We compared McDonald’s hours of operation against national competitors, those who have stores in most states, who serve breakfast lunch and dinner. Hours of operation means any time the store’s lobby or drive-thru are open. The chains analyzed included: Taco Bell, Burger King, Wendy’s, Sonic, and Chick-Fil-A. Data retrieved in April 2019.

[8] McDonald’s reported $38.5 billion in sales at U.S. stores in 2018, of which $2.665 billion was from company-owned stores and $35.860 billion was from franchised stores. See McDonald’s Corporation. Form 10-K. February 2, 2019. Pg. 22-23.

[9] The U.S. fast food market generated $256 billion in revenue in 2018. “Fast Food Restaurants in the US.” IBISWorld . October 2018. Available at: https://www.ibisworld.com/industry-trends/market-research-reports/accommodation-food-services/fast-food-restaurants.html

McDonald’s Corporation. Form 10-K. February 2, 2019. Pg. 22-23.

[10] Akin Oyedele and Skye Gould. “These are the 10 biggest employers in the world.” Business Insider . June 23, 2015. Available at: https://www.businessinsider.com/biggest-workforces-in-the-world-2015-6

[11] McDonald’s USA, LLC. Franchise Disclosure Document. May 1, 2019. Item 20.

[12] McDonald’s USA, LLC. Franchise Disclosure Document. May 1, 2019. Item 11.

[13] Chase Purdy. “McDonald’s isn’t just a fast-food chain—it’s a brilliant $30 billion real-estate company.” Quartz . April 25, 2017. Available at: https://qz.com/965779/mcdonalds-isnt-really-a-fast-food-chain-its-a-brilliant-30-billion-real-estate-company/

[14] Researchers used Google News to search for media accounts of violent incidents at McDonald’s restaurants using the following search terms: “McDonald’s robbery,” “McDonald’s shooting,” “McDonald’s fight,” “McDonald’s arrest,” “McDonald’s violence,” “McDonald’s sexual assault,” and “McDonald’s rape.” For each incident, we recorded the following details: date reported in the media, time and date of incident, McDonald’s address, nature and location of violence, weapons used, and reported injuries and/or deaths. Results from the Google News search were cross-checked the with the listing of gun violence incidents maintained by the Gun Violence Archive, a not-for-profit that provides public access to information about gun violence.

Available at: https://www.gunviolencearchive.org/

[15] Analysis of Standard Location Reports released by Chicago’s Office of Emergency Management and Communications from April 16, 2016 to April 15, 2019. Standard Location Reports are based on the address of the occurrence. To exclude reports from addresses where multiple businesses operate from the same building, such as those located on the ground floor of skyscrapers or other mixed-used buildings, this analysis only includes data from stores that have a drive-thru.

“Security Guard Assaulted Outside Downtown McDonald’s, Dramatic Cell Phone Video Shows.” NBC 5 Chicago . April 9, 2019. Available at: https://www.nbcchicago.com/news/local/Security-Guard-Assaulted-Outside-Downtown-McDonalds-Dramatic-Cell-Phone-Video-Shows–508323711.html

“Teen hit in face with hammer during fight over spot in line at McDonald’s.” ABC 13 Eyewitness News . June 27, 2018. Available at: https://abc13.com/teen-hit-with-hammer-in-fight-over-spot-in-fast-food-line/3663738/

[17] Researchers identified the three news stories searching Google and LexisNexis.

City of St. Louis Metropolitan Police Department. Crime data from January 2016 to December 2018. Retrieved April 2019.   Available at: https://www.slmpd.org/Crimereports.shtml

Paul Schankman. “Would-be robbers squeeze through drive-thru window at McDonald’s.” Fox 2 Now St. Louis . August 11, 2016.  Available at: https://fox2now.com/2016/08/11/would-be-robbers-squeeze-through-drive-thru-window-at-mcdonalds/

Alexandra Martellaro, Kiya Edwards. “3 McDonald’s robbed through drive thrus.” KSDK-TV . June 27, 2016. Available at: https://www.ksdk.com/article/news/crime/3-mcdonalds-robbed-through-drive-thrus/63-257194799

Denise Hollinshed. “Police looking for gunman who robbed McDonald’s in St. Louis.” St. Louis Post-Dispatch . January 19, 2018. Available at: https://www.stltoday.com/news/local/crime-and-courts/police-looking-for-gunman-who-robbed-mcdonald-s-in-st/article_c79f0fb9-580a-5603-ae22-069a100b5bcc.html

[18] Denise Hollinshed. “Police looking for gunman who robbed McDonald’s in St. Louis.” St. Louis Post-Dispatch . January 19, 2018.  Available at: https://www.stltoday.com/news/local/crime-and-courts/police-looking-for-gunman-who-robbed-mcdonald-s-in-st/article_c79f0fb9-580a-5603-ae22-069a100b5bcc.html

The robberies occurred at the 1919 S Jefferson Ave McDonald’s store. City of St. Louis Metropolitan Police Department crime data from April 16, 2016 to April 15, 2019. Retrieved April 2019. Available at: https://www.slmpd.org/Crimereports.shtml

[19] The incidents occurred at the 1119 N Tucker Ave McDonald’s store. Id .

[20] Interview with Elena Gonzalez in April 2019.

[21] Standard Location Report for the McDonald’s store at 1004 W Wilson Ave, Chicago, lists eleven different incidents involving shootings or reports of people with guns. Chicago Office of Emergency Management and Communications from April 16, 2016 to April 15, 2019.

Taylor Hartz. “Boy, 15, shot outside fast food restaurant in Uptown.” Chicago Sun-Times . October 14, 2018. Available at: https://chicago.suntimes.com/news/boy-15-shot-outside-fast-food-store-in-uptown/

“Man Gets Kicked Out Of Uptown McDonald’s, Shot.” CWB Chicago . April 14, 2017. Available at: http://www.cwbchicago.com/2017/04/man-gets-kicked-out-of-uptown-mcdonalds.html

[22] Joshua Rhett Miller. “Customer shoots McDonald’s manager over frappé order.” New York Post . June 2, 2017. Available at:   https://nypost.com/2017/06/02/customer-shoots-mcdonalds-manager-over-frappe-order/

[23] Interview with Gail Rogers in April 2019.

[24] Josh Carter. “Armed robber enters Brandon McDonald’s through drive-through window.” WLBT . March 25, 2019. Available at: http://www.wlbt.com/2019/03/26/heavy-police-presence-responds-mcdonalds-brandon/

Amanda Burke. “Driver reports being shot at in Fall River McDonald’s drive-thru.” Providence Journal . April 4, 2019. Available at: https://www.providencejournal.com/news/20190404/driver-reports-being-shot-at-in-fall-river-mcdonalds-drive-thru

“Police arrest man for allegedly waving a loaded gun in McDonald’s parking lot.” Manchester Ink Link . March 18, 2019. Available at: https://manchesterinklink.com/police-arrest-man-for-allegedly-waving-a-loaded-gun-in-mcdonalds-parking-lot/

[25] Researchers reviewed each article covering the incident and identified the time and location of the incident. The figures add up to more than 100 percent because some incidents could take place in more than one locations (e.g. a fight that starts in the lobby and spills to the parking lot).

[26] Reports for 91 percent of the incidents indicated the time of the incident’s occurrence.

[27] Researchers compared McDonald’s hours of operation against national competitors, those who have stores in most states, who   serve breakfast lunch and dinner. Hours of operation means any time the store’s lobby or drive-thru are open. The chains analyzed included: Taco Bell, Burger King, Wendy’s, Sonic, and Chick-Fil-A. Data retrieved in April 2019.

[28] McDonald’s 2005-Q4 Earnings Call. January 24, 2006.

[29] McDonald’s 2007 Annual Report. March 17, 2008. Pg.25. Available at:  https://www.mcdonalds.com/dam/AboutMcDonalds/Investors/C-%5Cfakepath%5Cinvestors-2007-annual-report.pdf

McDonald’s 2008 Annual Report. March 12, 2009. Pg. 22. Available at: https://www.mcdonalds.com/dam/AboutMcDonalds/Investors/C-%5Cfakepath%5Cinvestors-2008-annual-report.pdf

McD Q2 2006 Earnings call transcript. July 25, 2006.

McD Q4 2007 Earnings call. January 28, 2008.

[30] Michael Arndt. “McDonald’s goes 24/7.” Bloomberg BusinessWeek . January 26, 2007. Available at: http://www.nbcnews.com/id/16828944/ns/business-us_business/t/mcdonalds-goes/

[31] See Note 27. Hours of operation means any time the store’s lobby or drive-thru are open. To calculate the average hours of operation for each chain, researchers first calculated the weekly average opening and closing times for each store. Researchers then estimated the average hours of operation by subtracting the average opening time from the average closing time for each store. Lastly, researchers averaged the hours of operation for each chain.

[32] Id. Pg. 4 and “Violence in the Workplace.” The National Institute for Occupational Safety and Health (NIOSH). July 1996. Available  at: https://www.cdc.gov/niosh/docs/96-100/risk.html

“Recommendations for Workplace Violence Prevention Programs in Late-Night Retail Establishments.” Occupational Safety and Health Administration. 2009. Available at: https://www.osha.gov/Publications/osha3153.pdf

[33] “Young Workers – You Have Rights!” Occupational Safety and Health Administration. Available at:   https://www.osha.gov/youngworkers/

Young Workers Safety in Restaurants E-Tool.” Occupational Safety and Health Administration. Available at: https://www.osha.gov/SLTC/youth/restaurant/index.html

[34] “Recommendations for Workplace Violence Prevention Programs in Late-Night Retail Establishments.” Occupational Safety and Health Administration. 2009. Available at: https://www.osha.gov/Publications/osha3153.pdf

[36] Robert C. Barish. “Legislation and Regulations Addressing Workplace Violence in the United States and British Columbia.”  American Journal of Preventative Medicine, Volume 20, Number 2. 2001. Available at: https://www.ajpmonline.org/article/S0749-3797(00)00291-9/pdf

[38] Bruce Horovitz. “Late shift proves deadly to more fast-food workers; Deaths increase as restaurants stay open longer.” USA TODAY. December 13, 2007. Available on Lexis.

[40] Only 37 percent of accommodation and food service workers have access to paid sick leave. Employee Benefits Survey. Bureau of   Labor Statistics. March 2018. Available at:

https://www.bls.gov/ncs/ebs/benefits/2018/ownership/private/table32a.htm

Only 32 percent of accommodation and food service workers have access to paid sick leave, and only 20 percent of those workers actually participate in their employer’s healthcare program. Employee Benefits Survey. Bureau of Labor Statistics. March 2018. Available at: https://www.bls.gov/ncs/ebs/benefits/2018/ownership/private/table09a.htm

[41] “Violence in the Workplace.” The National Institute for Occupational Safety and Health (NIOSH). July 1996. Available at: https://www.cdc.gov/niosh/docs/96-100/risk.html

[42] “ABCT Fact Sheets – Trauma.” Association for Behavioral and Cognitive Therapies. Available at: http://www.abct.org/Information/?m=mInformation&fa=fs_TRAUMA

[43] Interview with Graciela Rivera in April 2019.

[44] Carl Willis. “Worker feared she’d be fired if she left after McDonald’s Robbery.” February 19, 2018. Available at: https://www.wsbtv.com/news/local/atlanta/worker-boss-wouldnt-let-her-leave-after-mcdonalds-held-up-at-gunpoint/703206615

[45] Interview with Brenda Carbajal in May 2019.

[46] Interview with Darrell Miller in April 2019.

[47] Interview with Maria Paez in April 2019.

[48] “Workers’ Rights.” Occupational Safety and Health Administration. 2017. Available at: https://www.osha.gov/Publications/osha3021.pdf

[49] McDonald’s USA, LLC. Franchise Disclosure Document. May 1, 2019. Item 11.

[50] Interview with Christian McCoy in April 2019.

[51] “McDonalds’s employee stabbed to death in Bronx.” Fox 5 News . January 4, 2016. Available at: http://www.fox5ny.com/news/mcdonalds-employee-stabbed-to-death-in-bronx

[52] Many media reports of robberies, including those of the 2016 robberies in St. Louis discussed above, indicate that robbers forced workers to retrieve money from the store’s safe, which indicates that those stores were likely not using drop-safes.

Paul Schankman. “Would-be robbers squeeze through drive-thru window at McDonald’s.” Fox 2 Now St. Louis . August 11, 2016. Available at: https://fox2now.com/2016/08/11/would-be-robbers-squeeze-through-drive-thru-window-at-mcdonalds/

David Hurst. “Westwood McDonald’s robbed at gunpoint, Police say.” The Tribune-Democrat . July 30, 2018.

https://www.tribdem.com/news/westwood-mcdonald-s-robbed-at-gunpoint-police-say/article_5cba0a92-9374-11e8-b2b9-831555317770.html

[53] Scot Lin, Rosemary Erickson. “Stores Learn to Inconvenience Robbers: 7-Eleven Shares Many of its Robbery Deterrence Strategies.” Security Management . November 1998. Available at: https://www.questia.com/magazine/1G1-53286782/stores-learn-to-inconvenience-robbers-7-eleven-shares

[54] Google Streetview shows numerous stores whose windows are plastered with marketing materials.

https://www.google.com/maps/place/McDonald’s/@41.9682631,-87.7249226,3a,90y,165.85h,86.34t/data=!3m7!1e1!3m5!1s65Bv4IBuPUdqkf2jfEQvQg!2e0!6s%2F%2Fgeo3.ggpht.com%2Fcbk%3Fpanoid%3D65Bv4IBuPUdqkf2jfEQvQg%26output%3Dthumbnail%26cb_client%3Dsearch.TACTILE.gps%26thumb%3D2%26w%3D211%26h%3D120%26yaw%3D170.3408%26pitch%3D0%26thumbfov%3D100!7i16384!8i8192!4m8!1m2!2m1!1smcdonald’s!3m4!1s0x0:0xd008e975fd3466d!8m2!3d41.9680341!4d-87.7248538

https://www.google.com/maps/place/7241+Gravois+Ave,+St.+Louis,+MO+63109/@38.5652822,-90.2924564,3a,75y,350.08h,86.61t/data=!3m6!1e1!3m4!1sThzqXvZO9s3mgqf3mrxhWQ!2e0!7i13312!8i6656!4m13!1m7!3m6!1s0x87d8b606f8a2e14f:0x13eacb2f44a43e7e!2s7241+Gravois+Ave,+St.+Louis,+MO+63109!3b1!8m2!3d38.5656814!4d-90.2925818!3m4!1s0x87d8b606f8a2e14f:0x13eacb2f44a43e7e!8m2!3d38.5656814!4d-90.2925818

[55] Alexandra Martellaro, Kiya Edwards. “3 McDonald’s robbed through drive thrus.” KSDK-TV . June 27, 2016. Available at: https://www.ksdk.com/article/news/crime/3-mcdonalds-robbed-through-drive-thrus/63-257194799

[56] “Recommendations for Workplace Violence Prevention Programs in Late-Night Retail Establishments.” Occupational Safety and Health Administration. 2009. Available at: https://www.osha.gov/Publications/osha3153.pdf

[57] Id. Pg. 11.

[58] Danielle Wayda. “Florida Fast Food Workers Plan Strike in Response to Violent McDonald’s Incident.” Vice . January 7, 2019.  Available at: https://www.vice.com/en_us/article/ev33j4/florida-fast-food-workers-plan-strike-in-response-to-violent-mcdonalds-incident

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McDonald's Corporation

By: Frank T. Rothaermel, John Kim

The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in…

• Length: 23 page(s)
• Publication Date: Sep 28, 2017
• Discipline: Strategy
• Product #: MH0050-PDF-ENG

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The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in performance amidst increasing competition. In addition, the case details Easterbrook's strategic initiatives in an attempted turnaround of McDonald's' fortunes. With some $25 billion in sales (in 2017) and some 45,000 restaurants globally (thereof 27,000 in the U.S.), McDonald's remains the largest quick-service restaurant (QSR) chain. At the same time, McDonald's has been struggling on several fronts in recent years. Attempting to be "everything for everybody," McDonald's fell victim to being "stuck-in-middle," without a clear strategic position. With such a large global installed base of restaurants and franchisees, any changes coming from the McDonald's headquarters require significant leadership, investment, and potential risk.

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Vision, mission, and values; Core competency; Business model; Business unit and corporate strategy; Industry and competitor analysis.

Sep 28, 2017

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United States

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Restaurants and food service industry

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MH0050-PDF-ENG

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An Investigative Role of Ethics in Business Performance: The Case of McDonald’s Corporation in the United States of America and other Selected Countries

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Home — Essay Samples — Philosophy — Ethics — Mcdonalds Code of Ethics Case Study

Mcdonalds Code of Ethics Case Study

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Published: Mar 20, 2024

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Table of contents

Introduction, ethical challenges faced by mcdonald's, mcdonald's code of ethics, evaluation of mcdonald's code of ethics.

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McDonald’s harassment and bullying cases ‘truly horrific’, says UK boss

Chain is receiving one to two complaints about sexual harassment a week, says UK chief executive

The UK boss of McDonald’s has told MPs that widespread cases of sexual harassment and bullying of workers at its fast food shops are “truly horrific” and that the chain was receiving one to two complaints a week about sexual harassment.

McDonald’s, which has 1,450 outlets and employs close to 180,000 people in the UK, most of them young people under 25, is under huge pressure to stamp out widespread sexual harassment and assault, racism and bullying, after an investigation by the BBC, which spoke to more than 100 current and recent McDonald’s workers, some as young as 17.

Alistair Macrow, the chief executive of McDonald’s UK & Ireland, told MPs on the Commons business and trade committee: “The cases are absolutely horrendous. What I’d like to be clear about is that we will tackle them and make sure that we do everything we can to eradicate them from the business. Nothing is more important.”

He said that, since July, McDonald’s had received 407 complaints “of all types”. Of those, 157 had been fully investigated and 75 had led to disciplinary action, including 18 dismissals. There were 17 confirmed cases of sexual harassment and 27 under investigation, as well as nine bullying cases and one related to racism. He said some had been reported to the police by individuals, but did not know how many.

Macrow told MPs: “To give you a picture of what we see on an ongoing basis, we typically would see between 20 and 25 contacts per week, of which one or two would be [about] sexual harassment. And about five would be bullying.”

He said there was no particular hotspot in the UK. “These cases come from across the whole business, including the restaurants we own ourselves,” he added.

McDonald’s uses a franchise system, which means outlets are run by individual operators who employ the staff. Nearly nine in 10 branches are run by franchisees. Macrow said no franchisees had lost their contracts as a result of the sexual harassment cases.

Macrow set up an investigations unit in late July after the allegations were revealed, and said then that the unit would refer the most serious cases to a third-party legal team staffed with “specialist investigators”.

The testimony from McDonald’s workers, some of which was read out at the committee hearing, was “truly horrific” and “very hard to listen [to]”, Macrow said, adding that some of the complaints stretched back as far as the 1980s.

Workers at McDonald’s have made complaints “in every shop” across London , according to the head of the Bakers, Food and Allied Workers’ Union.

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Speaking to the committee earlier on Tuesday, Ian Hodson, the national president of the union, said it had received 1,000 complaints. He said they reported incidents of being groped, inappropriate language and treatment. “It was common and it was normal, which obviously it shouldn’t be,” Hodson said.

He said some of the stories were “absolutely horrific”. And it shouldn’t happen here in the 21st century in the UK. A global corporation, one of the biggest employers in the world, and that makes billions and billions of pounds, can’t protect its workforce. It’s awful. It’s awful. It should be leading and be an example for others. But they’re not.”

Last Thursday, the law firm Leigh Day launched legal action against McDonald’s on behalf of a group of the chain’s workers.

• Food & drink industry
• Sexual harassment
• Trade unions
• Employment law

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Most viewed.

10 popular McDonald's menu items that cost up to 168% more now than a decade ago

• McDonald's has increased prices the quickest of 12 fast-food chains since 2014, a new report found.
• Collectively, the cost of a group of the most popular McDonald's items has doubled in that time.
• Price increases at Starbucks and Subway were much closer to inflation.

Your favorite McDonald's meal might cost twice as much as it did 10 years ago.

Collectively, a selection of McDonald's most popular items, from the Big Mac to a medium order of fries, doubled in price between 2014 and 2024, a report by FinanceBuzz found. That increase was the most of several major fast-food chains that FinanceBuzz, a finance-news and -research website, examined.

Over the same period, inflation rose 31%, per the report.

Among the biggest McDonald's price hikes was for the McDouble sandwich, which went from an average price of $1.19 in 2014 to $3.19 in 2024 — a 168% increase. The cost of a Quarter Pounder with cheese meal also more than doubled, from an average of $5.39 in 2014 to $11.99 this year, according to the report.

A McDonald's spokesperson said the numbers were "not an accurate representation of pricing at McDonald's restaurants" but did not provide alternative estimates of how much the chain had raised prices.

"As the article itself notes, pricing is set by individual franchisees and varies by restaurant," the spokesperson said, referencing the FinanceBuzz report.

Burger King told Business Insider that it had "always offered quality food at affordable prices, and we will continue to be very thoughtful about making sure our guests receive great value for the money they spend with us."

Related stories

A Starbucks spokesperson said that the chain was "evaluating and adjusting prices on an ongoing basis."

Spokespeople for the other nine restaurants mentioned in the study did not immediately respond to requests for comment from BI.

FinanceBuzz looked at the prices of 10 menu items from each restaurant examined in the study. It collected historical pricing data and, in the case of McDonald's, adjusted for the variety of pricing strategies used by franchisees, it said.

McDonald's has increased prices multiple times over the past decade. One of the most visible examples is the demise of its dollar menu , which now includes items that cost up to $3 — and few, if any, that actually sell for $1.

Executives acknowledged in February that McDonald's price increases had put off customers who made $45,000 a year or below. Many are ordering less at the chain's restaurants and eating at home more often, they said.

But other restaurants raised prices nearly as much during the decade. The fried-chicken chain Popeyes increased prices by 86%, while Taco Bell hiked them by 81%, the study found.

Not all chains were as aggressive with their increases. Both Subway and Starbucks increased prices by 39%. At Starbucks, the menu price of some products rose slower than broader inflation: The average cost of a caramel macchiato went up just 17% over the decade, for example.

Inflation has slowed in recent months, and some restaurant chains have indicated they plan to slow price increases in 2024.

But other costs, such as employee pay , remain high.

Inflation is still increasing, which means higher prices at many fast-food restaurants are here to stay, Daniel Roccato, a clinical professor of finance at the University of San Diego's Knauss School of Business, said.

"We won't see prices drop, but we can expect a pause," he said in FinanceBuzz's report.

Do you work at McDonald's or another restaurant chain and have a story idea? Reach out to this reporter at [email protected].

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