Business ethics Moral issues facing a company involved in the fast food industry
- The fast food industry is confronted with many moral issues which concern different stakeholder groups: consumers, employees and suppliers
- Managers have their own moral issues and must be able to combine the interests of each stakeholder group in order to preserve the interests of the company as a whole
Contrary to Friedman's theory which claims that corporations only aim at increasing profits and shareholders revenues, companies have moral responsibilities. Indeed, shareholders are not alone in a firm and have to compromise with the interests of the other stakeholders. According to Freeman , a stakeholder in an organization is any group or individual who can affect or be affected by the achievement of the organization's objectives. In this way, the stakeholder approach consists for a company, in considering the effects of its activities and taking into account the interests of all stakeholder groups. The fast food industry illustrates perfectly the different concerns in ethics and morality that, this industry is a symbol of globalization in the sense that it is characterized by many multinational companies which have an important economic and political power. These positions give them some moral obligations in terms of social sustainability; indeed fast food companies have to fight against glaring inequalities in wealth distribution. Therefore, it is important that managers should run the fast food industry according to the stakeholder approach, because it is the only way to reach success for all stakeholder groups.