Ethics Husi And Mcdonalds
Business Ethics
Part A
Ethical Dilemma Essay
A1 Ethical Dilemma Description 1.1 Background Shanghai Husi is the Chinese unit of US-based food supplier OSI Group.
Its customers in China include Yum Brand owned KFC, coffee chain Starbucks, McDonalds and Burger King.
On 20 July, 2014, Shanghai TV news channel and Dragon TV reported news of Shanghai Husi Food Corporate Limited (Husi) , which is one of the suppliers of McDonalds in China and Hong Kong. The news is about Husi using processed expired chicken to produce chicken nuggets or fried chicken and then supplied them to McDonalds. There were 18 tons of expired materials in total. McDonalds is the biggest sufferer in this case. Although McDonalds has a routine inspection for the materials, reporters disclosed that Husi management allowed production department to modify the expire date, even some of these material is already expired for 7 months. McDonald 's said that nearly 500 stores in Japan had removed chicken nuggets from their menu, adding that sales were expected to resume after it switches to other suppliers in China and Thailand. McDonald 's has also stopped selling its McSpicy chicken filets, chicken and green salads, fresh corn cups and iced lemon tea at its outlets in Hong Kong. The move came after Hong Kong 's food safety regulator suspended all imports from Shanghai Husi Food.
The regulator added that any food products from Husi already imported into Hong Kong would be marked, sealed and banned from sale, pending the results of the ongoing investigation by Chinese authorities.
Since the material problem, Hong Kong McDonalds stopped supplying foods with those ingredients, such as tomato. To recover the confidence of customers and food quality, McDonalds purchase tomato from United States to replace which was Husi’s supply, therefore McDonalds took a higher cost on ingredients. 1.2 Conclusion From this case, we can see that McDonalds and Husi are in a
Part A
Ethical Dilemma Essay
A1 Ethical Dilemma Description 1.1 Background Shanghai Husi is the Chinese unit of US-based food supplier OSI Group.
Its customers in China include Yum Brand owned KFC, coffee chain Starbucks, McDonalds and Burger King.
On 20 July, 2014, Shanghai TV news channel and Dragon TV reported news of Shanghai Husi Food Corporate Limited (Husi) , which is one of the suppliers of McDonalds in China and Hong Kong. The news is about Husi using processed expired chicken to produce chicken nuggets or fried chicken and then supplied them to McDonalds. There were 18 tons of expired materials in total. McDonalds is the biggest sufferer in this case. Although McDonalds has a routine inspection for the materials, reporters disclosed that Husi management allowed production department to modify the expire date, even some of these material is already expired for 7 months. McDonald 's said that nearly 500 stores in Japan had removed chicken nuggets from their menu, adding that sales were expected to resume after it switches to other suppliers in China and Thailand. McDonald 's has also stopped selling its McSpicy chicken filets, chicken and green salads, fresh corn cups and iced lemon tea at its outlets in Hong Kong. The move came after Hong Kong 's food safety regulator suspended all imports from Shanghai Husi Food.
The regulator added that any food products from Husi already imported into Hong Kong would be marked, sealed and banned from sale, pending the results of the ongoing investigation by Chinese authorities.
Since the material problem, Hong Kong McDonalds stopped supplying foods with those ingredients, such as tomato. To recover the confidence of customers and food quality, McDonalds purchase tomato from United States to replace which was Husi’s supply, therefore McDonalds took a higher cost on ingredients. 1.2 Conclusion From this case, we can see that McDonalds and Husi are in a
References: Pages BBC News (2014). McDonald 's halts nuggets sales in Hong Kong. Retrieved 25 July, 2014. from http://www.bbc.com/news/business-28478338 McDonalds Hong Kong (2014). Where do our ingredients come from? Retrieved 15 August, 2014. from http://www.mcdonalds.com.hk/en/food/learn-more-about-mcdonalds-food/where-do-our-ingredients-come-from.html Gerald, L.(2013). Should Utilitarianism Be Scalar? Utilitas , 25(1), 80-95. doi: http://dx.doi.org.eproxy.vtclib9.vtc.edu.hk:2048/10.1017/S0953820812000295 Said, R., Yuserrie, H.Z., Haron, H.(2009).The relationship between corporate social responsibility disclosure and corporate governance characteristics in Malaysian public listed companies. Social Responsibility Journal, 5(2), 212-226. doi: http://dx.doi.org.eproxy.vtclib9.vtc.edu.hk:2048/10.1108/17471110910964496 Last Page