Minor Financial Markets
Case 1
McEthics in Europe and Asia:
should McDonald’s extend its response to ethical criticism in Europe?
Introduction
The “McEthics” case describes how Mc Donald’s, the fast food industry’s market leader, faces charges concerning growing health problems in Europe and Asia.
1) Set out the main criticisms that have been leveled at Mc Donald’s in Europe. To what extent are these criticisms likely to be replicated in Asia? What differences can be predicted?
There are four main areas of critique that have been leveled at Mc Donald’s in Europe. First, the products are said to be fat and unhealthy, which fosters health problems, especially obesity and diabetes. Secondly, the labor conditions are heavily criticized. Mc Donald’s has been accused of paying too little wages and being ‘strongly antipathetic’ to unions. Harsh criticism also arose concerning the companies advertising. These accusations are based on the belief that Mc Donald’s ‘exploits children’ and uses ‘false advertisement of its food as nutritious’. The last point of criticism is the firms ‘culpable responsibility’ for animal cruelty. Additionally, in France a whole wave of an anti–American sentiment aggravates the negative image of Mc Donald’s.
In Asia the main point of criticism that is replicated is health issues. The fat foods and emerging fast food culture is especially dangerous to children’s health. In Europe traditions of protests and rebellions may help people change and the freedom of speech. Moreover, governments have a great interest in a healthy population because offering an expensive welfare and health care system. From our point of view these factors have led to a strong resistance against Mc Donald’s which would never emerge in Asia in such an extent.
2) Describe and evaluate the tactics used by McDonald’s in responding to their critics in Europe? Will these work to the same degree in Asia?
According to