Question

how is what happened in McDonald india related to codifying business ethics and why does any business have ethical problems?

Answer 1

Managing Values is a value-driven organization committed to helping others identify and codify values and ethical principles to help employees thrive and achieve business goals. For any successful business, there should be present these values:

• Promote a shared vision for success
• State a clear purpose and set of values that employees can sign up to
• Define key relationships inside and between stakeholders
• Measure culture and benchmark workplace actions against stated values.

And as we know in McDonalds India, the stakeholder of the Indian chain of McDonalds Vikram Bakshi was ignored after repetitive emails and calls about the difficulty he was facing while running the chain in the north and east India, we can clearly see that there were no ethics followed here and also due to this the revenue of McDonald's in India fell rapidly.

There are four reasons why any business has an ethical problem :

1. LACK OF INTEGRITY
   The obligation to act with integrity is a common feature of most professional codes of conduct. Whilst the meaning of dishonesty has been the subject of extensive legal analysis, the circumstances in which someone may lack integrity had not been explored in any great detail until the last few years. It is therefore perhaps not surprising that the main issue has been the proximity of lack of integrity to dishonesty.
2. ORGANIZATIONAL PROBLEMS
   By very nature, an organization is the framework of relations. It is but natural that there crop up some problems out of such organizational relations. These are common to all types of marketing organizations. These emerge mainly out of the growth of an organization and the violation of the basic principles of authority.
3. CONFLICT OF INTEREST
   a situation in which the concerns or aims of two different parties are incompatible or a situation in which a person is in a position to derive personal benefit from actions or decisions made in their official capacity.
4. MISLEADING ADVERTISEMENT
   Advertising may also be considered misleading if important information that the average consumer needs to make an informed decision is left out. Misleading advertising covers claims made directly to consumers by manufacturers, distributors, and retailers, as well as in advertisements, catalogs, websites, etc.