KFC in India - Ethical

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BECG044 Electronic Format: Rs. 500 ;
Courier (within India): Rs. 25 Extra

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies


Themes

Business Ethics
Case Length : 17 Pages
Period : 1995-2004
Pub. Date : 2004
Teaching Note : Available
Organization : KFC
Industry : Fast Foods
Countries : India

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 midst of controversies 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 flavor 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 organization. PETA accused KFC of cruelty towards chickens and released a video tape showing the ill-treatment of birds in KFC's poultry farms.

 

However, undeterred by the protests by PETA and other animal rights organizations, KFC planned a massive expansion program in India.

Issues:

Understand the significance of cultural, economic, regulatory and ecological issues while establishing business in a foreign country

Appreciate the need for protecting animal rights in developed and developing countries like India

Understand the importance of ethics in doing business

Examine the reasons for protests of PETA

Identify solutions for KFC's problems in India

Contents:

  Page No.
Protest Against KFC 1
Background Note 2
KFC's Entry in India 3
Problems for KFC 4
The Aftermath 8
Exhibits 10

Keywords:

KFC, Business Ethics, International Business, People for Ethical Treatment of Animals (PETA), Food Adulteration, Selling Junk Food, Cruelty against Animals, Animal Welfare Legislation, KFC's Poultry Welfare Guidelines

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