Online_Eyfs_System

In the module of business ethics, I realised how a business played an important role that will affect entire human being life and non-human stakeholders. Also, business should not only focus on their individual and shareholders benefits but also need to pay attention on the issue of sustainability of environment and their stakeholders. Most of companies are only focusing on their own business areas, for example, developing new products, penetrating new markets, and create new resources. During these activities, the company gets plenty resources from the society, especially the international companies. Considering the fierce price competition on the market, more and more international companies will move their manufactory to developing countries in order to reduce their labour cost. However, when the companies extend their business, they also create many other problems. Take the global fast food restaurant McDonald’s for example. The company has successful penetrated over hundred countries and different markets around the world. McDonald’s delivers fast food and good service to their broadly customers However, behind of their products and good services, the company generated plenty issues which directly impacted to each individual life and the public benefits. In my first essay, I addressed four different issues from the aspect of social responsibility and the sustainability environment. First of all, the life style is changed. McDonald’s taken this advantage and stretched their business area in many developing countries. China is a good example. More and more McDonald’s has extended in the big cities or second-level cities. Nevertheless, the company delivers fast food which resulted in obesity, diabetes and other diseases. Concealing from the products and good services, McDonald’s is needed to control their cost and to maintain the maximum profits for the company and their shareholders. Therefore, McDonald’s hired a lot of younger employees whom are under 21 years-old. The company can pay low wages for the part-time employees and spend less human resources costs. Employees are working under high temperature kitchen and hazard working condition. McDonald’s also faced animal welfare and environment protection issues. People criticized how McDonald’s treats the animals in the inhumanity way. Meanwhile, McDonald’s has tremendous supply chain network which spreads all over the world. The Upstream suppliers such as chicken and cattle farmers who located in the centre and south of America are needed to import soya from other countries, for example, Brazil. The downstream suppliers cut the forest to plant more and more soya. On the other hand, cattle farmers will need to move their farm every few years in order to have grass so they cut the rain forest as well. Nevertheless, we know the importance of the rain forest for entire human being. McDonald’s is the largest of global fast food restaurant. They have well-known brand value and leadership among consumers and industries. Although the company delivers fast food and services to consumers, McDonald’s has responsibility for health issue of customers such as obesity problem. Moreover, the market strategy of the company is low cost and high volume. It can be expected that the company has high pressure on cost control. However, when McDonald’s controlling the costs, the company needs to consider the employees’ welfare including the health working environment, good working condition, and fair wages. Employees also will be their customers. So, it is important for McDonald’s to pay more attention on employees’ welfare issues. On the other hand, McDonald’s should not only focus on human stakeholders but also consider on non-human stakeholders. People are criticized McDonald’s that they treat the animals just like fast food. Although animals cannot do any reactions, human being has this responsibility to take look the rights of animals. At the same time, McDonald’s has duty to take their responsibility for the deforestation of rain forests issue. The rain forests are the treasure of entire human being. Once the rain forests are destroyed, it is hard to regrow or recover again. It is not only influenced to human being but also affected to whole ecological environment. McDonald’s has strong leadership and powerful buying power to influence their suppliers from upstream to downstream. From McDonald’s case, I learnt that the business, especially global international business, will have strong influence power. Each decision or action will change people’s living style even their health. In this case, fast food changes people diet behaviour but it is also brought ill effect on health problem such as obesity. It is really helpful for me to remind myself: if I were a manager in the international company, my decision is not only affect to the company and shareholders’ profits, but also impact to people or any stakeholders which can be the labours located in China manufactory. Considering the aspect of cooperate social responsibility, business should have awareness to take duty and responsibility for their stakeholders including employees, shareholders and customers. Business can use their brand value to influence their customers. For example, companies can sponsor many charity activities. Also, companies can take their leadership advantage to influence their suppliers, customers, even their competitors. McDonald’s is a good example. The company established the censorship to strictly forbid their suppliers that destroyed rain forests. Meanwhile, the company set up the policies of animal welfare. McDonald’s used their leadership to influence among the markets and industries. On the other hand, employee welfare is also importance for the company. In this module, I understood that the rights of employee and the duties of employee. It is quite important for us because most of us will return to workplace and may have chance to be a manager after graduate from business school. Except for the employee rights and duties, a manager also needs to consider whether the working condition is proper for employees and the wages is fair or not. It is also important to concern whether the working and life is balance for the employees. Employees are the intangible assets of the company. They also will be the customers for the business. So, any companies and managers are needed to consider employee welfare when they make each decision.