Name: Rodney Wheeler
Course: B406/BUL4060 Section 02 Business Law and
Ethical Behavior
Institution: Rasmussen College
Date: 05/05/17

Introduction
Ethics entails a company’s social, political and community
perspectives and how they are applied in the company and the
people in totality. In most cities, fast food restaurants are not only a
booming business venture but also readily available to most people.
Factors such as improved technology and the ever-growing
population have prompted the food industry to increase its revenue.
However, the food industry has been facing some challenges
regarding ethical behavior

Ethical Behaviors in Food Industry
 Food industries use inputs whose self-life is short.
 Workers are paid minimal wage.
 World Health Organization and Health related organizations are
against fast food products.
 Environment is also affected since the industries use disposable
plates and bags to package their products.

Reasons for Addressing Critical
Ethical Issues.
 To Improve and Maintain Customer Loyalty
 To Increase sales volume
 To Increase profit margins

Trending Ethical Issues
 Reluctance to compliance with food and health regulations
 Minorities taking jobs in food processing and food service
 Food distribution and hunger
 Food safety and labeling

Food Consumer Trends
2007 2008 2009 2010 2011 2012
Organic foods 807.0 828.6 873.3 889.5 895.0 900.6
Packaged
foods
611.4 616.3 645.1 659.8 669.5 680.5
Beverages 195.6 212.3 228.1 229.7 225.6 220.1
Table 1: Sales of Organic foods in Japan (Retain in US$ millions)
Source: Euro monitor, International, 2012

Consequences of Ethical Issues in
Food Industry
 Chronic health risks
 Farming crisis
 Food safety concerns
 Overuse of resources including water and land

Food Industry and Public Health
As part of ethical concerns, public health sectors have advocated for
food industries to accomplish profitability while ensuring that
customers are restrained towards healthy foods. The use of growth
hormones in foods is termed to be the leading cause of antibiotic
resistance in humans. Consequently, the public health sector is
skeptical that food industries are obsessed with profits rather than
promoting health foods to its customers. Food firms are ethically
obliged to create awareness on healthy food including protecting
children from unhealthy foods (Hammaker, Knadig, & Tomlinson,
2007).

Non-Trending Ethical Issues
ANTI-SUGAR CONCERNS
After conducting a detailed marketing research and analysis, it
was evident that there are certain special class of consumers still
suffers in the hands of existing food and beverage industries. They
are consumers who have been advised by doctors to avoid taking
high sugar content foods. Saunders and associates limited
maintains that meeting customers constitutes its most preferred
goals. As a result, by not resolving the anti-sugar concerns,
chances that the company would lose many target consumers is
high.

EXORBITANT FOOD PRICES
According to (Bartels & Onwezen, 2014), exorbitant prices mean
higher prices than stipulated normal prices. Food industries often
take advantage of consumers’ ignorance about correct charges and
it is an ethical issue to overcharge. If Saunders and associates
limited does not remedy this ethical concern, it will lose most
clients who might be able to afford high prices charged. It would go
against our preferred objective of expanding the market share to
increase sales volume attainable.

HEALTH AND HYGIENE
There is laxity to adhere to government prescribed hygienic
standards that are meant to reduce likely risks such as outbreak
of diseases such as cholera (Crane & Matten, 2016). By not
observing health and hygienic standards endorsed by the food
regulatory authority, the company risks its license being
revoked. many customers revealed that they do not prefer
buying fast foods because most operating food industries are
not keen in observing health and hygiene in their activities.

Objectives of Saunders and
Associates Limited
 To command a large market size to gain competitive advantage
among its rivals.
 To Provide high quality, affordable and healthy fast foods to its
clients
 To execute all ethical issues effectively to attract many potential
clients, increase customer loyalty and avoid being at loggerheads
with authorities.

Chronic Diseases Caused by Food-
borne Contaminations
 Kidney failure in young children and infants
 Reactive arthritis and serious infections
 Meningitis and still births
 Guillain-Barre syndrome (Inflammatory disorder leading to
paralysis)

Ethical Dilemmas of Food
Safety
 Customer’s taste and preferences
 Traditional food cultures
 Food industries economic interest
 Responsibility for food-related Illnesses
 Strategies to provide adequate information to consumers
 Legislation
 Training and management of employees

References
 Oni, O., & Matiza, T. (2014). Factors Influencing Consumer Choice of Fast
Food Outlet: The Case of an American Fast Food Franchise Brand
Operating in a Predominantly Rural Community. Mediterranean Journal
of Social Sciences. http://dx.doi.org/10.5901/mjss.2014.v5n20p802
 Schneider, J. (2010). Concerns over food industry anti-obesity campaign
links. Nursing Standard, 24(50), 33-33.
http://dx.doi.org/10.7748/ns.24.50.33.s45
 Ukandu, N., & Ukpere, W. (2014). Factors Impacting Job Satisfaction of
Employees in the Fast Food Industry in Cape Town. Mediterranean
Journal of Social Sciences. http://dx.doi.org/10.5901/mjss.2014.v5n3p51

 Bartels, J., & Onwezen, M. C. (2014). Consumers' willingness to buy
products with environmental and ethical claims: the roles of social
representations and social identity. International Journal of Consumer
Studies, 38(1), 82-89.
 Crane, A., & Matten, D. (2016). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford
University Press.
 Sebastiani, R., Montagnini, F., & Dalli, D. (2013). Ethical consumption
and new business models in the food industry. Evidence from the Eataly
case. Journal of business ethics, 114(3), 473-488.
 Hammaker, D. K., Knadig, T. M., & Tomlinson, S. J. (2017). Health care
ethics and the law.
 In Motarjemi, Y., In Moy, G., & In Todd, E. C. D. (2014). Encyclopedia of
food safety.