Business Ethics of Kfc

BUSINESS morality 2011 Report S on a lower floorland business organisation School Undergraduate Programs Name Lanny Chew Jun Kheong Identification Number 880328-52-5707 Student ID 109129662/1 Tel. Number 016-8515159 E-mail email harbored com Study Centre SEGi College Sarawak Module Business Ethics Code UGB210 Module motorcoach Ms. Adeline Academic Year 2011 EXECUTIVE SUMMARY This survey was produced as an audit overlay providing a gibe of KFCs byplay ethics. First, the author started with the respectable dilemma of KFC which include poor quality products, creature poke fun and poor operatives conditions.Identification of ethical dilemmas is important where state drop know about the ugly truths that KFC was pr cloakicing. The report is fol embarrasseded with a discussion of the importance of the ethical dilemma of KFC and actions taken by KFC to solve the problems. Under this surgical incision the relevant theories such(prenominal) as utilitarianism, egoism, fairness b e clear explain with real ex adenineles in this report. Although in that respect be pros and cons, KFC has in addition practice silk hat practices. This third section covered up a some values such as hope, love and caring that KFC is practicing by participating in embodied well-disposed Responsibility (CSR) and established regulation of conduct.Even though action has been taken, it in like manner can non solve the dilemma. So, the author has offer pass for KFC as reference. This report was ended with a terminal. CONTENT PAGE ASSIGNMENT TITLE PAGE i EXECUTIVE SUMMARY ii CONTENT iii 1. 0 INTRODUCTION 1 1. 1COMPANY PROFILE 1 2. 0 ETHICAL DILEMMAS 2 . 1 POOR QUALITY PRODUCTS 2 2. 2 ANIMAL outcry 4 2. 3 POOR WORKING CONDITIONS 4 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC 5 3. 1 PRODUCTS QUALITY IMPROVEMENT 5 3. 2 ANIMAL WELFARE ISSUES 7 3. 3 stool UNION 9 4. 0 KFC BEST PRACTISES AND VALUES 11 4. 1 CORPORATE SOCIAL province (CSR) 11 4. 2 piddle SUPPLIER COD E OF CONDUCT 12 5. 0 RECOMMENDATION 13 5. 1 GO FOR ORGANIC 13 6. 0 CONCLUSION 14 APPENDIX 1 15 APPENDIX 2 21LIST OF REFERENCES 24 1. 0 INTRODUCTION This report was produced to analyze the ancestry ethics of Kentucky heat bellyacher (KFC). First, the report started with a brief description on the company back launch. Next, it is continued with identification of the ethical dilemmas poor quality products, fauna abuse and poor working condition of KFC, provided from stakeholder depth psychology and ex adenosine monophosphateles from their archives. After that, the report moved on to the importance of the mentioned ethical dilemmas and how KFC is dealing with it. The actions taken are product quality improvement, animal eudaimonia issues and establish union.This included the application of the various ethical theories. Then, it is continued with the good typeface of KFC when the analysis was done on KFC best practices and values that KFC are practicing. It included Corporate am icable Value (CSR) where they offered Projek Penyayang KFC in Malaysia and Colonels Scholar Program, practicing the value of hope and love and established supplier code of conduct by practicing the value of justice. Further, the author put on suitable recommendations for KFC such as Go for innate, with the hope that the syllabus recommended can help KFC in expanding their phone line towards a brighter forthcoming.Lastly, this report was closed up with a conclusion justifying the essentialness of business ethics. 1. 1 COMPANY BACKGROUND KFC, founded and also kn give birth as Kentucky heat up Chicken, is a chain of profligate regimen restaurants based in Louisville, Kentucky and is now one of the well-known fast forage restaurants which operates in more than(prenominal) than 11,000 branches in more than 80 nations and territories finishedout the world. Examples are UK, China, Thailand, Malaysia, Kuwait, Spain and Bar faultyos, Puerto Rico, Pakistan and many more.KFC start ed with Colonel Harland Sanders who grew up to buzz off a mortalage the world known as Colonel Sanders doneout the years, discovered his penchant for cooking when he was only 9 years old. KFC is now regarded as the roughly grumbler restaurant chain providing a special mouth watering taste fried sensationalistic that can non be replaced with icterics natural juices sealed-in leaving KFC with pride as a fast-food restaurant that provide customers with a selection of home-styled side dishes and desserts such as coleslaw and ice-creams to make a wholesome, complete and satisfying meal despite only serving great appreciation chicken (http//www. fc. com). (Refer to Appendix I). 2. 0 ETHICAL DILEMMAS According to Lee Flamand (eHow, 2011), an ethical dilemma is a detail wherein moral precepts or ethical obligations conflict in such a way that any accomplishable resolution to the dilemma is mor whollyy intolerable. In former(a) words, an ethical dilemma is any situation in which g uiding moral principles cannot determine which course of action is right or wrong. (http//www. eHow. com) The competition between fast food restaurants is increasing where KFC gain to come out with more choices of selection to encounter the demand of their patrons.At the resembling time, they restrain to think of ways to make more sales, cut costs, and basically maximise the profits of the firms and confront many ethical dilemmas concerning their products and consumers during the process. The ethical dilemmas include poor quality products, animal abuse and poor working conditions. 2. 1 POOR QUALITY PRODUCTS David Ludwig (2009), director of a Boston childrens hospital said that fast-food habit has been shown to increase calorie intake, promote weight gain, and elevate happen for diabetes (http//www. the radicalwellness. com).Fast Food is usually rheumy, andcan frequently leadto loyal consumers having weight problems. This matter got worst to KFC where in year 2006, KFC was world sued for heat its chicken with cooking oils that contain Trans- juicys, which can contri besidese to heart disease and diabetes. According to Mayo Clinic, trans fat is also called trans-fatty acids and assumed by some doctors to be the worst type of fat which both(prenominal) raises bad (LDL) cholesterin and lowers good (HDL) cholesterol. A high LDL cholesterol train in combination with a low HDL cholesterol level increases the risk of getting heart disease (http//www. ayoclinic. com). Trans fat is bad that it boosts the risk of coronary disease and quite a little should only consume no more than 2 g per day. However, KFC claimed its products meet or exceed all government regulations. But as the Center for Science in the general Interest, the activist group behind the lawsuit, points out, a three-piece extra-crispy combo meal, which is called dinner-p previous(a) in Malaysia, contains 15 g of trans fat which is more than a person should ingest (Time magazine, 2006).In C hina, some of the outlets in Xianyang city were being accuse for utilize the very(prenominal) frying oil to fry chickens up to 10 days and this can defecate genus Cancer (http//www. chinadaily. com. cn). Furthermore, other examples such as customers cut her tongue and mouth aft(prenominal) plastic was been found when she consumed coleslaw, damn bandage found under KFC baked beans, worms discover in sandwiches, children became sick afterwards eating KFC in Colorado, proved that KFC poor quality products issue has achieving a rattling dangerous level (http//www. kfcmademesick. com/). Added on, some KFC outlets were nonethe slight forced to pay compensation for injuries.Example KFC in Plymouth has been fined $13,000 for selling raw chicken to their customers (http//www. dailyrecord. co. uk). In year 2009, KFC in central London faced food hygiene charges with the cases where countless sighting of cockroaches, mice, rats and flies flying out front was found when an investigatio n was done in the city. The owner has been fined ? 20,000 and was asked for temporary shop closed down (http//www. caterersearch. com). 2. 2 ANIMAL ABUSE Since the late 1990s, KFC faced severe protests by People for Ethical Treatment of Animals (PETA), an animal rights protection organization.The improper breeding of birds combined with improper working conditions of role players and lack of ethically efficient work processes led to improper practices in KFCs suppliers poultry farms. According to Donald G. McNeil Jr. who produce his article in New York Times in 2004, an animal rights group involved in a long good dispute with KFC released a videotape showing carnage workers for one supplier leap up and down on live chickens, drop-kicking them equal footballs and slamming them into walls, apparently for fun.Furthermore, other acts of cruelty which include suffocating a chicken by tying a latex glove over its head, workers bowelless beaks off, spitting tobacco juice into birds mouths, ripping a birds head off to write graffiti in blood, plucking feathers to make it snow, and squeezing birds like water balloons to spray feces over other birds were all precept by an under investigator who works for the company (http//www. thenazareneway. com). KFC suppliers even cram birds into huge waste-filled factories, breed and do drugs them to grow so large until the chicken could not even walk, and often break their wings and legs.The chickens throats were scrape and they were dropped into tanks of scalding-hot wateroften while they were still conscious during slaughtering process (http//www. kentuckyfriedcruelty. com/). As a result KFC was accused of animal abuseby PETA, on the suppliers farm. 2. 3 POOR WORKING CONDITIONS distressing working conditions is always an issue for KFC especially for the branches located in big countries such US, India and China. In US, workers in Pilgrims Pride Poultry farm did animal abused action just to alleviate tedium or vent fr ustrations especially when so many chickens were coming in that they would concord to work late (http//www. henazareneway. com). On the other hand, according to the city government of Guangzhou, China effective from January 1 year 2006, the negligible wage for part-time labor commit by local regulations is at 7. 5 Yuan per minute of arc in big cities such as Guangzhou but KFC only paid them with 5. 5 Yuan. KFC were bombarded for this pact as it had violated the legal rights of employees. KFC allegedly force part-time employees to work the same hours as ripe-time lag but fail to pay them any of the benefits to which full-time rung are entitled.Adding on, employees who work more than five-spot hours a day and 30 hours a week should be treated as full-time staff and observe the same fringe benefits according to the mainland laws. However, the Guangdong labor authoritys clarification indicates that part-time working students are not protected by the law, which is a relief for the employers involved. It was extremely cheating(prenominal) for those part-timers (China Business, 2006). 3. 0 IMPORTANCES OF THESE DILEMMAS AND ACTION TAKEN BY KFC According to De George, R.T who has written in his book entitled Business Ethics (5th Edition) in year 1999, he declares that an ethical dilemma occurs when the choice is defined unclearly between alternative actions with moral content. Whether a specific deportment is right or wrong, ethical or unethical is often determined by the concerned stakeholders and an several(prenominal)s personal ethics. As a result, values, judgments, and complex situations all play a critical graphic symbol in ethical decision making. 3. 1 PRODUCTS QUALITY IMPROVEMENTThe reason KFC using trans oil at basic because the food produced is very much tastier. Trans oil which is introduced in 1990s, claims that it is suitable to substitute natural oil and healthy. It has expose performances under high heat, longer shelf life and also it i s cheaper (http//www. msnbc. msn. com). For example The crispy fried chicken is resulted crispier when frying with trans oil. Here, it is very clear that KFC has a bad judgment in choosing the types of oil to be used and caused them being sued on their judgment.KFC also react as activist stakeholder where by using trans oil which is cheaper, they believe their enthronisation allow giving them a good return in profit. In these new era with full of busyness and stressful lifestyle, so as dual-working families where both parents are forced to work to increase the income of a family, more and more race are fully dependent on quick meal solutions and about(prenominal) will opt for fast food. Fast food such as KFC is not only a fast food restaurant, but the check off- KFC and their products have highly encounter a place in everyones life as it really helps in saving a meal-preparation time.Although people start to be more health conscious of having good health and body figures, fast food especially KFC may cause obesity according to research. Health Organizations in most development countries such as U. S, and U. K, have started to get on their citizens to concern more about their having healthy life by having nutritious meal. Since KFC started their operations and expanded their business globally, the chicken-meal they offered, only gains a bad image and reputation of a fast food that provides greasy unhealthy food.Fast food has the potential to disturb directly and visibly on peoples well-being like obesity. With this case, KFC practice the conjecture of utilitarianism which is also called the greatest happiness principle where they have taken an action which results greatest union of people receiving the greatest amount of good. So, KFC came out with Kentucky grilled Chicken which is marinated with savory blend of secret herbs and slow-grilled to juicy perfection. This new product has fewer fat grams, fewer calories, and less sodium than original recip e chicken.Besides, all KFC chicken products practice cipher Grams Trans Fat per serving where they have found the perfect recipe by incorporating the Colonels 11 herbs and spices with a new cooking oil that contains zero grams of trans fat. Beside fried chicken, many others favorite KFC side dishes such as mashed potatoes and wages are now served with zero grams of trans fat (http//www. kfc. com). KFCs new products and Zero Grams Trans Fat plans have help them to push up their brand where they tend to promote happiness through serving customers with nutrient food and it is also a better option for health-conscious customers.According to Brooks and Dunn (2009), The ethically elucidate action is the one that will produce the greatest amount of pleasure or the least amount of pain. 3. 2 ANIMAL WELFARE ISSUES Since the case of animal abuse being explored to the world, KFC faced the toughest challenge in where it heated up the reality awareness towards the animal welfare. People all approximately the world started to be concerned about this issue as KFC has their branches oecumenical. Animal abuse case occurred huge ruckus by the public has caused the corporation to lose their image and their reputations are highly damaged because of the law stated by PETA.After the incident, stakeholders expectations and demands regarding the standardized guidelines of animal treatment were also increased. The case not only affected the business all over the world, but also its brand (KFC) reputation, turnover and profit as KFC has their branches in most of the countries and hence, caused the monumental come tos on the relationship between contemporary organization such as McDonald, Burger King, Wendy and Safe-way as they also afraid that KFC might drag them down, their shareholders such as the owners of each KFC branch restaurants and finally public opinion.Just like other fast food chain, KFC seems trying to minimize their budget and hence maximize their profits without c onsidering their suppliers and customers alternatively they should put on priority on the importance of ethics. Suppliers just did what requested by KFC without thinking their controvert impacts when requisition for chickens meat increased. Here, KFC react brilliantly where they did not run away from verity as several actions had been taken to overcome the problems and tried to make the issue a learning history for all.KFC took an immediate responds and developed a series of plan to overcome the problems and this action has become a effort for KFC in the future. When receiving a little pressure from PETA, KFC Canada agreed to a historic new animal welfare plan that they became the low gear major restaurant chain ever in whole world to grease ones palms all of its meat exclusively from controlled-atmosphere killing (CAK) slaughter syndicates and dramatically the lives and deaths of millions of chickens for Canada. http//www. thepoultrysite. com. ) CAK is a method of slaughterin g poultry where chickens do not suffer when being removed from the crates,hung upside down, shackled, bled, and scalded in defeathering tanks which leads to struggling, stress, and broken wings. The processes work the oxygen in the outrage cages is replaced with other gasses such as carbon dioxide, argon or nitrogen to gently put them into dormancy mode.The birds die from the lack of oxygen, and are dead forwards they are ever addressd by slaughterhouse workers (http//animalrights. about. com/). Besides, there are no chances for workers to abuse the chicken as they never have to chance to handle live chickens in CAK. This process even provide with better results when workers do not indigence to struggle with flapping, scratching, vomiting, and defecating chickens, lights can be kept bright throughout the process and the air maintain at its cleanliness level (http//www. peta. org/).As stated clearly in KFC main website, all suppliers must comply with the KFC policy which is they are strictly not allowed to use hormones and steroids for any purposes, including improving egress in chickens due to the genetically engineered for faster growth and antibiotics are strictly prohibited. To show their sincerity in shimmy, KFC even formed the KFC Animal Welfare advisory Council, which consists of highly regarded experts in the field who will provide information and advice based on relevant information and scientific research which has been a key factor in formulating their animal welfare program.To rebuild the public confidence towards KFC, the company allowed PETA to review its animal welfare audit forms every six months (http//www. kfc. com). 3. 3 take a shit UNION Employees play one of the most important characters in the whole process. Without these people, KFC might not have such a huge success in their business until today. After the incident of underpaying their part-time workers inGuangzhou, they set up trade union branches across the province.This inci dent has highly touched up people awareness to protect compassionateity rights especially in China when media from Shanghai, Taiyuan, Tianjin, Fuzhou and Beijing reported similar findings and have caused uproar across China. Furthermore, the unfair treatment to employees increased when labor officials in Shanghai claimed that they have not found any regulations in KFC outlets as the rules in Shanghai do not apply to part-time or to student.The unclear stipulations on the rights and benefits of part-time or student employees enable KFC to make use of the legal loopholes as all fast-food restaurants are profit-making enterprises that wish to earn more profits by taking advantage on their part-time employees. KFC practice the theory of egoism here as the company only burster about themselves rather than considering about its employees profits. Cheating part-time workers is also a common practice in the US because companies take advantage of the fact that most part-timers are young, inexperienced and lack representation.These businesses should be undeniable to adhere to the rules and regulations of the host country, said TangXiaojing to China Daily in year 2007. This whole case also tells China and the world that people have to be aware of the unequal situation for laborers in China, and to admiration why the legislation is always so vulnerable (http//www. china. org. cn) In return, KFC claimed that they would took amours seriously by take ining precedent into the situations and will approached the local trade union of the city for guidance of set up the trade union.KFC has utilize the theories of fairness here where everyone has been free to receive rewards for their efforts, which is also known as procedural justice (Beauchamp amp Bowie, 1997). The president of Yum Brands Inc promised that KFC will accept every statements ruling Chinese government makes over its alleged contraband exploitation of part-time staffs in China. And they would do whatever i s requested by the trade union after they have concluded their investigations into the employment of KFCs part-time workers.Besides, trade union in several cities in China will work together with local labor and amicable security departments to investigate the inviolate fast food restaurants in China which were suspected to have similar unlawful behavior to protect the rights of employees. With the cooperation between KFC and members of All China Federation of Trade Union to establish KFC own union, the author believes the cases of unfair treatment to employees will be lowered and KFC branches in China will be the model for other KFC in other countries (http//www. china. org. cn). 4. 0 KFC BEST PRACTISES AND VALUES 4. CORPORATE SOCIAL RESPONSIBILITY (CSR) The brand KFC has been form in peoples heart as one of the best fried chicken restaurant and in return, KFC participated themselves in CSR as CSR is all about how a company manages the business processes to produce an general p ositive impact on society (http//www. mallenbaker. net) Refer to Appendix II. KFC takes its CSR priority faithfully and makes a utilize effort to fulfill its tasks in every area including the community, education, diversity, market place, workplace, and animal welfare which is also benefiting to all including its stakeholders.CSR which is also claimed to be a trade purpose is logically captured in the new definition of marketing answered by the American Marketing Association (2004) which stated marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. KFC practiced the value of Hope and Love. In Malaysia, KFC Malaysia has set up Projek Penyayang as appreciation for greatly support by the Malaysian. Project Penyayang which was founded in 1995, was advisedly developed to provide food to a total of 80 homes every qua rter to enable thousands of orphans and deprived to enjoy KFC meals. With a heart of caring, KFC fulfill the hope of orphans who wished to have KFC. Tabung Penyayang KFC which is a unique fund representing a percentage of revenue generated from sales of KFCs Kids Fun Meals was set as a charity fund to help children and needy through various CSR Program. Adding on, all the programs also included donation, charity, and organize open house dinner particularly to those less fortunate, elderly and orphaned (http//www. fc. com. my). Caring is about wanting another person to succeed and do well in life and their career. With a heart of caring, KFC cares about students education. KFC create a fund Colonels Scholars, offering scholarships for entrepreneurial drive and strong perseverance high school seniors who need fiscal helps to support their school fees in their study career. Students who are selected will received up to $ 20,000 to receive a bachelor degree program in the university the students have chosen inside their cities only (http//www. kfcscholars. org/). 4. ESTABLISH SUPPLIER CODE OF CONDUCT KFC practice the value of justice where they protect the rights and punish the wrongs. Supplier code of conduct is established by KFC U. S. which is committed to protect all U. S. suppliers employees rights by conducting its business towards legal, ethical and socially responsible manner. All KFC suppliers are required to follow and abide by all applicable laws, codes or regulations which includes not limited to any local, state or federal laws regarding wages and benefits, employees compensation, working hours, equal opportunity, worker and product safety.All suppliers are expected to confirm their practices to the published standards for their industry in order to get the contract to supply goods to KFC. Staffs of suppliers are protected in many areas where they must have safe and healthy working conditions and working schedules, non-discrimination occurs in indu stry, child labor issue where employees below 14 years old are strictly prohibited from working, forced and indentured labor and lastly notification to employees where notices of policies can be clearly explained to them.With addition, suppliers who are failed to follow the Code may cause them to disciplinary action which might include the depot of the Supplier relationship with KFC. KFC pay full respect to all the employees as they work for suppliers who supply chicken meats and goods for KFC who claimed to be working indirectly for KFC. 5. 0 RECOMMENDATION Marketing strategy used to be very important in a business as a well-planned marketing strategy helps a business to earn more profitability, well-known brand mark and loyalty from customers.As time goes by, marketing strategy cannot be dependent on just meeting the needs and demands of all stakeholders. KFC should now by right snap on how to deliver a better service and products quality to customers as the brand KFC has alrea dy been accept by everyone in the world. 5. 1 GO FOR ORGANIC Emphasizes should be done on consumer health, products quality and social righteousness initiatives as people start conscious about having good health and enough nutrients. When people start going for constituent(a), KFC should go for it tooOrganic products and other ingredients are grown without the use of pesticides, celluloid fertilizers, sewage sludge, genetically modified organisms, or ionizing radiation. Organic meat, poultry, eggs, and dairy products are come from animals such as chickens and cows that do not take antibiotics or growth hormones (http// ingrained. org). Going for organic food products will increase the modal of production and it needs a long period of time for this huge transformation as there are few steps that have to be followed.According to USDA National Organic Program (NOP), a Government-approved certifier will inspect the farm where the food is grown to make sure the granger is pastime a ll the rules necessary to meet USDA organic standards before a product can be labeled organic,. Companies that handle or process organic food before it gets to your local supermarket or restaurant must be certified, too.On the other hand, it will be the hardest decision for KFC as they have to do surveys and further consideration whether the program is suitable for every KFC branches in the whole world as KFC have to reconsider about looking for new trustable suppliers that can continuously provide organic food and it is tough. KFC can always start slowly from the beginning by providing several choices from organic food such as organic salad, organic soya bean drink instead of carbonated flavored drinks, and mashed potatoes made from organic potatoes.If the program run with success, KFC will become the first ever fast food chain that provides organic food products and the author strongly believes that the strategic planning will surely increase the sales of KFC and gaining more prof it although KFC products will be sell at higher prices due to highly increased modal. 6. 0 CONCLUSION Conclusion, ethics is definitely necessary for a business to grow successfully, become more significant and more organized. A business can highly impact on the peoples lives and mint through providing jobs, life organization, creating wealth and inspiring others to grow their own business.Therefore, the business maybe ruined and leaves it with a bad reputation if an organization is not having a proper understanding on business ethics. From bad to good, KFC has gone through every hard time and now moving towards a better future when they finally overcome most of its ethical issues. People do make mistakes and learn from mistakes so as KFC. KFC will learn from their mistakes and make the mistakes to the power of change. The author strongly believe that KFC will do their best in meeting everyones need and KFC will become the first priority for every human when they thinking of nice an d tasty fried chicken.KFC So Good APPENDIX 1 KFC HISTORY and PRODUCTS KFC HISTORY-AT-A-GLANCE 9/9/1890 Harland Sanders is born just outside Henryville, Indiana. xcl0-1924 Harland Sanders holds a variety of jobs including farm hand, streetcar conductor, army occult in Cuba, blacksmiths helper, railyard fireman, insurance salesman, tire salesman and service station operator for Standard Oil. 1930 In the midst of the depression, Harland Sanders opens his first restaurant in the small front room of a gas station in Corbin, Kentucky. Sanders serves as station operator, chief cook and cashier and names the dining area Sanders judicial system & Cafe. 1936 Kentucky governor Ruby Laffoon makes Harland Sanders an honorary Kentucky Colonel in recognition of his contributions to the states cuisine. 1937 The Sanders Court amp Cafe adds a motel and expands the restaurant to 142 seats. 1939 The Sanders Court amp Cafe is first listed in Duncan Hines Adventures in Good Eating. Fire destroys The Sanders Court & Cafe, but it is rebuilt and reopened. The pressure cooker is introduced. Soon thereafter Colonel Sanders begins using it to fry his chicken to give customers fresh chicken, faster. 1940Birthdate of the Original chemical formula 1949 Sanders marries Claudia Price. 1952 The Colonel begins actively franchising his chicken business by traveling from town to town and cooking batches of chicken for restaurant owners and employees. The Colonel awards Pete Harman of Salt Lake City with the first KFC franchise. A handshake agreement stipulates a payment of a plate to Sanders for each chicken sell. 1955 An interstate highway is built to bypass Corbin, Kentucky. Sanders sells the service station on the same day that he receives his first social security check for $105.After paying debts owed, he is virtually broke. He decides to go on the road to sell his Secret Recipe to restaurants. 1957 Kentucky Fried Chicken first sold in buckets 1960 The Colonels hard work on the road begins to pay off and there are 190 KFC franchisees and 400 franchise units in the U. S. and Canada. 1964 Kentucky Fried Chicken has more than 600 franchised outlets in the United States, Canada and the first abroad outlet, in England. Sanders sells his interest in the U. S. company for $2 million to a group of investors headed by buns Y. Brown Jr. , future governor of Kentucky.The Colonel remains a public spokesman for the company. 1965 Colonel Sanders receives the Horatio Alger Award from the American Schools and Colleges Association. 1966 The Kentucky Fried Chicken Corporation goes public. 1969 The Kentucky Fried Chicken Corporation is listed on the New York Stock Exchange. 1971 More than 3,500 franchised and company-owned restaurants are in worldwide operation when Heublein Inc. acquires KFC Corporation. 1976 An independent survey ranks the Colonel as the worlds second most recognizable celebrity. 1977 Colonel Sanders speaks before a U. S.Congressional Committee on Aging. 1979 KFC cooks up 2. 7 billion pieces of chicken. There are approximately 6,000 KFC restaurants worldwide with sales of more than $2 billion. 12/16/1980 Colonel Harland Sanders, who came to symbolize quality in the food industry, dies after being stricken with leukemia. Flags on all Kentucky state buildings fly at half-staff for four days. 1982 Kentucky Fried Chicken becomes a subsidiary of R. J. Reynolds Industries, Inc. (now RJR Nabisco, Inc. ) when Heublein, Inc. is acquired by Reynolds. 1986 PepsiCo, Inc. acquires KFC from RJR Nabisco, Inc. 1997 PepsiCo, Inc. nnounces the spin-off of its quick service restaurants KFC, Taco Bell and Pizza field hut into Tricon Global Restaurants, Inc. 2002 Tricon Global Restaurants, Inc. , the worlds largest restaurant company, changes its corporate name to YUM Brands, Inc. In addition to KFC, the company owns AampW All-American Food Restaurants, Long John Silvers, Pizza Hut and Taco Bell restaurants. 2006 More than a billion of the Colonels finger lickin good chicken dinners are served annually in more than 80 countries and territories around the world. 2007 KFC proudly introduces a new recipe that keeps the Colonels 11 herbs and pices and finger-lickin flavor, but contains Zero Grams of Trans Fat per serving thank to new cooking oil. 2008 The Colonel has a new look KFC updates one of the most recognized, respected and beloved brand icons with a new logo. The new logo depicts Colonel Sanders with his signature string tie, but for the first time, replaces his classic white, double-breasted suit with a red apron. The apron symbolizes the home-style culinary heritage of the brand and reminds customers that KFC is always in the kitchen cooking delicious, high-quality, freshly prepared chicken by hand, just the way Colonel Sanders did 50 years ago. 009 KFC introduces Kentucky Grilled Chicken a better-for-you option for health conscious consumers who love the flavor of KFC. Kentucky Grilled Chicken has less calories, fat an d sodium than KFCs Original Recipe chicken, without sacrificing the great taste of KFC. APPENDIX 2 Corporate social responsibility What does it mean? By Mallen Baker First published 8 Jun 2004 One of the most frequently asked questions at this site and probably for all those individuals and organizations dealing with CSR issues is the obvious just what does Corporate Social Responsibility mean anyway?Is it a stalking horse for an anti-corporate agenda? Something which, like original sin, you can never escape? Or what? Different organizations have framed diverse definitions although there is considerable common ground between them. My own definition is thatCSR is about how companies manage the business processes to produce an overall positive impact on society. Take the following illustration Companies need to answer to two aspects of their operations. 1. The quality of their management both in foothold of people and processes (the inner circle). 2.The nature of, and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused as well as past financial performance on quality of management as an indicator of likely future performance.Other definitions The World Business Council for Sustainable phylogenesis in its publication Making Good Business Senseby Lord Holme and Richard Watts, used the following definition. Corporate Social Responsibility is the continuing commitment by business to behave ethically and channel to economic development while improving the quality of life of the workforce and their families as well as of the local community and soci ety at large The same report gave some evidence of the contrary perceptions of what this should mean from a number of different societies across the world.Definitions as different asCSR is about condenser building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the governmentfrom Ghana, through toCSR is about business giving back to societyfrom the Philippines. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their business to pay taxes. Then they donate a certain share of the profits to charitable causes.It is seen as tainting the act for the company to receive any benefit from the giving. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Pers onally, I believe this model is more sustainable because 1. Social responsibility becomes an integral part of the wealth creation process which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. 2.When times get hard, there is the incentive to practice CSR more and better if it is a philanthropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove. But as with any process based on the collective activities of communities of human beings (as companies are) there is no one size fits all. In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues.For instance, the CSR definition used by Business for Social Responsibility is Operating a business in a manner that meets or exceeds t he ethical, legal, commercialised and public expectations that society has of business. On the other hand, the European Commission hedges its bets with two definitions wrapped into one A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. When you review each of these, they broadly agree that the definition now focuses on the impact of how you manage your core business. 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