Subject category:
Ethics and Social Responsibility
Published by:
IBS Center for Management Research
Length: 18 pages
Data source: Published sources
Abstract
The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in the midst of controversy since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavour enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organisation. PETA accused KFC of cruelty towards chickens and released a video showing the ill-treatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA and other animal rights organisations, KFC planned a massive expansion programme in India. The case is structured to enable the students to: (1) understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country; (2) appreciate the need for protecting animal rights in developed and developing countries like India; (3) understand the importance of ethics in doing business; (4) examine the reasons for protests of PETA; and (5) identify solutions for KFC's problems in India. The case is meant for students of MBA/PGDBA courses and is intended to be part of the ethics and social responsibility/international business curriculum.
About
Abstract
The case highlights the ethical issues involved in Kentucky Fried Chicken's (KFC) business operations in India. KFC entered India in 1995 and has been in the midst of controversy since then. The regulatory authorities found that KFC's chickens did not adhere to the Prevention of Food Adulteration Act, 1954. Chickens contained nearly three times more monosodium glutamate (popularly known as MSG, a flavour enhancing ingredient) as allowed by the Act. Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organisation. PETA accused KFC of cruelty towards chickens and released a video showing the ill-treatment of birds in KFC's poultry farms. However, undeterred by the protests by PETA and other animal rights organisations, KFC planned a massive expansion programme in India. The case is structured to enable the students to: (1) understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country; (2) appreciate the need for protecting animal rights in developed and developing countries like India; (3) understand the importance of ethics in doing business; (4) examine the reasons for protests of PETA; and (5) identify solutions for KFC's problems in India. The case is meant for students of MBA/PGDBA courses and is intended to be part of the ethics and social responsibility/international business curriculum.