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ACF528-Governance Risk and Ethics-Level3

3332Downloads1 I Published: 24 Jan ,2020


Governance ethics and risk are a system of moral principles which directly or indirectly affects the people decision. Ethics are concerned with the that what is good or bad for the society and individual (Daase and Friesendorf, 2010). In today business ethics are on priorities basis and it affects the decision making process. The organisation have to maintain their high ethical value which can give advantage from its own actions and satisfy the both external and internal stakeholders.

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1. The present research is made on McDonald's which shows their governance risk and ethics. They are trying to make aware about the faulty practices which are made by the company to attract large number of customers (Demidenko and McNutt, 2010). The reason for choosing this because it is multinational company and can easily get the information about their ethical issues.This company provides the different food items such as burgers, French fries, beverages and many more. The ethical dilemma of company is they are providing the toys with happy meal.

2. The case is unhealthy ingredients as these harm the health of consumers. These ingredients includes the chemicals such as sodium acid phosphate, acrylamide and many more which are banned by many countries. There are some controversy issues also mother found the lizard in her French fries. Some times company uses bad ingredients which harmed the customers health.

The corporate governance of McDonald's which has written on the company website is that there success is built on the foundation of professional and personal integrity. There are numerous customers around the world and trust on McDonald's. They earn the trust every day by providing the safe food and delivering best quality of services and values. They build trust by being ethical, dependable and truthful with the customers (Eon Rossouw and Van Vuuren, 2010).

The ethical issues McDonald's does not have to contain many calories which can directly effect on the consumer health. There are many customers who are suffering from the heart diseases and consumers are loosing hope towards the consumption of the fast food. One of the ethical issue of the company is that environmental issue. The company has opened the more factories which impact on the air of the environment and it leads in pollution. They are using the paper and plastics to serve the food which are contributing in the abuse of environment (McDonald’s Business Ethics Project Report,2017).

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3. The theory for relevant case is that the organisation have use some approaches such as cut out bad ingredients, introduce the new product in the market and add good ones. In cut out bad ingredients is that the organisation have to replace the bad ingredients by using the new ones. Through this it will not harm the people also. On other side, add good ones, in this the organisation have to use proper ingredients which does not harm the health of people and it should be used in appropriate manner (Moeller, 2011). The organisation has to made the efforts to provide the healthier food to customers and these are constrained by some factors i.e. the little agreements is done on healthy and junky foods that how they will define. In the contrary the company have to introduce the new food according to the needs of customers. The taste and preferences of customers are changing from time to time so they have to provide the new food items to attract the youngsters.

4. The preservative of organisation theories which can provide the reliable theoretical background through which it can understand the significance of managerial prospect of menu. In McDonald's there are menu management issues which dose not provide the ingredients which must be written with the food items. Through this the customers will not aware about the what are ingredients are using by the company to provide a healthy food. There are different strategies which can be use in literature such as the manager have to select or innovate the unique menu items, they have to set the higher prices with the expectation of the customers is that they are willing to pay a high prices of different foods items. The managers have to present the unique items in menu cards which can create the positive image in front of the customers (Pirson and Turnbull, 2011). The literature provide proper guidance to customers according to their wants and easily meet out with their requirements.

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5. There are many issues which are facing by the company such as ethical issue, corporate government issues, environmental ethics, legal and regulatory compliance and many more. The company has addressed ethical issues, environmental issues to retain in the competitive market (Racz, Weippl and Seufert, 2010). For the company it is important to deal with the environmental issues which protect the country form the pollution. In present case study company is using the unhealthy ingredients which directly or indirectly harm the consumer health. The ethical issue of McDonald's is that environmental ethics as they has open a number of factories around the world to produce the products and these are leading in pollution. The company have to follow the government rules and regulations which is showing the ethical dilemma legally (Sanderson, 2012). It is the fault of organisation of not producing the healthy food and to maintain the health of customers.


From the above case study it is concluded that the company have to make the some recommendation for offering the different items to customers. They have to take the actions to contribute the funds in CSR activities. They have to introduce more healthy foods and contains less calorie. For the customers they to provide the healthy and conscious food which will balance their diets. The organisation have to purchase the fresh vegetables also.


Books and Journals

  • Daase, C. and Friesendorf, C. eds., 2010. Rethinking security governance: the problem of unintended consequences. Routledge.
  • Demidenko, E. and McNutt, P., 2010. The ethics of enterprise risk management as a key component of corporate governance. International Journal of Social Economics. 37(10). pp.802-815.
  • Eon Rossouw, D. and Van Vuuren, L., 2010. Business ethics. Oxford University Press, 2010.
  • Moeller, R.R., 2011. COSO Enterprise Risk Management: Establishing Effective Governance, Risk, and Compliance (GRC) Processes(Vol. 560). John Wiley & Sons.
  • Pirson, M. and Turnbull, S., 2011. Corporate governance, risk management, and the financial crisis: An information processing view. Corporate Governance: An International Review. 19(5). pp.459-470.
  • Racz, N., Weippl, E. and Seufert, A., 2010, May. A frame of reference for research of integrated governance, risk and compliance (GRC). In IFIP International Conference on Communications and Multimedia Security(pp. 106-117). Springer Berlin Heidelberg.
  • Sanderson, J., 2012. Risk, uncertainty and governance in megaprojects: A critical discussion of alternative explanations. International journal of project management. 30(4). pp.432-443.
  • Vaughan, G. and et. al., 2012. Ethical issues: The multi‐centre low‐risk ethics/governance review process and AMOSS. Australian and New Zealand Journal of Obstetrics and Gynaecology. 52(2). pp.195-203.
  • Weitzner, D. and Darroch, J., 2010. The limits of strategic rationality: Ethics, enterprise risk management, and governance. Journal of business ethics. 92(3). pp.361-372.
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