Marketing Business Issues

THE ETHICAL DILEMMAS RELATING TO FAST FOOD INDUSTRY

Hanh Hailey

April 6, 2016

Marketing 360

Professor: Brandon Gustafson

1. Introduction:

According to a new report from JP Morgan, fast food companies are facing a crisis. Do they continue to rake in the profits associated with less healthy foods, or do they begin marketing foods that are better for you but bring in less money? There are no easy answers since business ethics is one of the most complicated and contentious subjects in human history.

2. The main challenges facing Fast Food Company and how they affect the companies:

Ethical dilemmas are moral decisions that have to be made when choices are equally unfavorable. As Fast Food Companies being so popular, they have to meet the demand of their patrons, but at the same time, they have to think of ways to make more sales, cut costs, and basically maximize the profits of the firms. During these processes, they have faced many ethical dilemmas concerning their consumer and competitors. To begin with, firstly, generally fast food has a reputation for unhealthy food, while consumer tastes in the United States continue to drift towards healthier options. With the obesity crisis looming larger every day, fast food companies are increasingly in the spotlight and under pressure to change their ways. A new global equity report entitled Obesity: Re-Shaping the Food Industry, was requested by United Nations asset managers who wanted an analysis of how obesity may affect company performance and valuations. These companies are in a bind- their shareholders clamor for profits, but the social costs of these profits is enormous.

Secondly, consumers ranked the addition of more produce as the most important dietary change they were making, above things like consuming less sugar, salt and fat. Related in part to concerns about healthy options, fast casual is the fastest growing segment of the restaurant industry, and is largely stealing market share from the fast food...