Theory of Utilitarianism
According to the theory of utilitarianism, an action is morally right if it results in the greatest amount of good for the greatest number of people affected by the action. Companies that follow the Utilitarian approach to their businesses tend to maximize happiness and minimize pain while meeting the demands of its stakeholders. McDonald’s is known to follow the theory of utilitarianism throughout its business practice. Over the years, McDonald’s has been able to gain competitive advantage by exploiting employees by regularly underpaying them and forcing child labour. Below are incidents of McDonald’s indulging in such business practices.
Slavery:
1. In 2013, student guest workers brought in on visas to work at …show more content…
Shenzhen 2000, hundred of 14 and 15-year-old spend long hours on the toys that come with the happy meals. These child labourers sweat from 7am to midnight packaging the toys sold with the McDonald’s happy meal. Children receive a daily wage of £1.88, barely enough for Big Mac Meal.
2. In 2001, two McDonald’s restaurants in Britain’s wealthiest areas were heavily fined for exploiting child workers. Ten school children, worked 16 hours on a Saturday and until 2 am on a school day. The company that holds the franchises for the restaurants, Ikhya Enterprises, was fined £12,400 by north-west Surrey magistrates, after admitting 20 offences of illegally employing schoolchildren.
Since McDonald’s is following the utilitarianism theory, it considers all potential repercussions of its actions and determines if its better or worse off. In the fast food industry, the main groups that are affected by McDonald’s business practices are McDonalds, customers, employees and child labours.
Parties that are positively affected by the unethical situation are the McDonald’s and the customers. McDonald’s is able to increase their sales and profit margins by decreasing wage cost. The customers are able to consume the food at an overall lower …show more content…
Set fixed wages. McDonald’s is an extremely successful business and it will continue to grow every year. Even if it increases the price of its menu items, billions of loyal McDonald’s customers will be willing to pay for their food instead of looking for a substitute. So, McDonald’s can easily afford to pay the minimum wage to its employees. Moreover, it should also provide its employees with other added benefits to keep them motivated and satisfied.
2. Stop child labour completely. It is important to understand that Not all work done by children under the age of 18 is classified as child labour. Participation in decent work which does not affect their health, personal development or education can be a very positive experience for children or adolescents who have reached the required age. McDonald’s should Immediately stop hiring children below the relevant minimum age. This does not mean they cannot recruit workers above the minimum age into decent youth employment. But there should be a permanent ban on underage
According to the theory of utilitarianism, an action is morally right if it results in the greatest amount of good for the greatest number of people affected by the action. Companies that follow the Utilitarian approach to their businesses tend to maximize happiness and minimize pain while meeting the demands of its stakeholders. McDonald’s is known to follow the theory of utilitarianism throughout its business practice. Over the years, McDonald’s has been able to gain competitive advantage by exploiting employees by regularly underpaying them and forcing child labour. Below are incidents of McDonald’s indulging in such business practices.
Slavery:
1. In 2013, student guest workers brought in on visas to work at …show more content…
Shenzhen 2000, hundred of 14 and 15-year-old spend long hours on the toys that come with the happy meals. These child labourers sweat from 7am to midnight packaging the toys sold with the McDonald’s happy meal. Children receive a daily wage of £1.88, barely enough for Big Mac Meal.
2. In 2001, two McDonald’s restaurants in Britain’s wealthiest areas were heavily fined for exploiting child workers. Ten school children, worked 16 hours on a Saturday and until 2 am on a school day. The company that holds the franchises for the restaurants, Ikhya Enterprises, was fined £12,400 by north-west Surrey magistrates, after admitting 20 offences of illegally employing schoolchildren.
Since McDonald’s is following the utilitarianism theory, it considers all potential repercussions of its actions and determines if its better or worse off. In the fast food industry, the main groups that are affected by McDonald’s business practices are McDonalds, customers, employees and child labours.
Parties that are positively affected by the unethical situation are the McDonald’s and the customers. McDonald’s is able to increase their sales and profit margins by decreasing wage cost. The customers are able to consume the food at an overall lower …show more content…
Set fixed wages. McDonald’s is an extremely successful business and it will continue to grow every year. Even if it increases the price of its menu items, billions of loyal McDonald’s customers will be willing to pay for their food instead of looking for a substitute. So, McDonald’s can easily afford to pay the minimum wage to its employees. Moreover, it should also provide its employees with other added benefits to keep them motivated and satisfied.
2. Stop child labour completely. It is important to understand that Not all work done by children under the age of 18 is classified as child labour. Participation in decent work which does not affect their health, personal development or education can be a very positive experience for children or adolescents who have reached the required age. McDonald’s should Immediately stop hiring children below the relevant minimum age. This does not mean they cannot recruit workers above the minimum age into decent youth employment. But there should be a permanent ban on underage