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Case
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Reference no. 702-022-1
Authors: A Mukund
Published by: IBS Center for Management Research
Published in: 2002
Length: 13 pages
Data source: Published sources

Abstract

The case examines the controversy involving the global fast food major McDonald''s, which was accused of wrongfully selling its French fries as 100% vegetarian products when they contained beef flavouring. It explores in detail the events that led to the controversy and the company''s reactions to the allegations. The case also discusses the eventual settlement of the lawsuit with the company paying damages to vegetarian groups and accepting that it had gone wrong. The case is so structured as to enable students to: (1) understand the moral and ethical obligations of a company to be honest about its products and services; (2) become sensitive to the religious, moral and health concerns of the different classes of customers, across the entire product range and the geographic scope of operations; (3) understand the cost and consequences of the absence of integrity in operations, dealings and communication with customers; (4) examine the cost of controversy and study its impact on the reputation of a global corporation; (5) understand the need for integrating company policies with operations including customer relations; and (6) appreciate the need for enforcing the code of conduct of a company covering its constituents for a large MNC engaged in the fast food business. The case is intended for MBA/PGDBM level students as a part of the ethics and social responsibility curriculum.
Industry:
Size:
Large
Other setting(s):
2000-2002

About

Abstract

The case examines the controversy involving the global fast food major McDonald''s, which was accused of wrongfully selling its French fries as 100% vegetarian products when they contained beef flavouring. It explores in detail the events that led to the controversy and the company''s reactions to the allegations. The case also discusses the eventual settlement of the lawsuit with the company paying damages to vegetarian groups and accepting that it had gone wrong. The case is so structured as to enable students to: (1) understand the moral and ethical obligations of a company to be honest about its products and services; (2) become sensitive to the religious, moral and health concerns of the different classes of customers, across the entire product range and the geographic scope of operations; (3) understand the cost and consequences of the absence of integrity in operations, dealings and communication with customers; (4) examine the cost of controversy and study its impact on the reputation of a global corporation; (5) understand the need for integrating company policies with operations including customer relations; and (6) appreciate the need for enforcing the code of conduct of a company covering its constituents for a large MNC engaged in the fast food business. The case is intended for MBA/PGDBM level students as a part of the ethics and social responsibility curriculum.

Settings

Industry:
Size:
Large
Other setting(s):
2000-2002

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