McDonalds Corporation is a multinational corporation that is in the lead in the food and restaurant industry. It is renowned for its yummy hamburgers among other foods. Just like all other enterprises in business, it has it fair share of ups and downs (Ebert, Griffin & Starke, 2003).
Business ethics are the moral values that are accepted in the corporate world. All businessmen and corporations have an obligation to abide by these values. This ensures that there is no conflict between the players in the market. It also ensures that any conflict arising have a defined solution. It is business ethics that enhance respect while competitors face each other. Business ethics are generally the morally accepted values in the society. They define the conduct of both the individuals working in firms and the firms themselves as the entities (Kaptein, 1998).
Failure to abide to the stipulation of business ethics could cause one to be sued. This ensures that they pay the damages accrued to their act or the injunctions as stated by a court of law. It is extremely crucial that individuals and firms abide to business ethics. This is because violation of these ethics could ruin the reputation that they hold. Consequently, this implies that they could lose their market share as their good will deteriorates.
McDonalds has been no exception in regards to violation of business ethics. This has seen the company being sued for damages caused due to the harm that is accelerated by the products that the company offers in the market. Particularly, the main problem has been associated with the social issue of child obesity. Several groups have come forward with the opinion that the company’s products tend to affect the societal culture. This implies that the company does not abide to the code of ethics that govern such matters. It is in this line that the company has been sued in the past. Notably, the cases include McDonald’s Restaurants v Morris & Steel. All the issues raised revolve around the corporate social responsibility of the company.
Every company has a social responsibility in regards to society at large. However, not all companies assume their responsibilities as expected. Conforming to social responsibility issues is one way of adhering to business ethics (Daft & Marcic, 2008). This is because an entity has the responsibility to ensure that it carries out itself in manner that is society friendly. Conforming to these responsibilities is one way of giving back to the community that enables a business or corporation to grow and develop tremendously (Shor, 2010).
Given the fact that the company is a multinational enterprise, it has been faced with several cultural barriers. However, the one reason why the company has continued to prosper is the fact that the top management of the company has been in control and has ensured that ethical stewardship continues in the running of the company (Nishida, Tsukasa et.al, 1996).Ethics stewardship should be enhanced in any organization. Competent leaders conform to business ethics and other moral values and hence viewed as ethical stewards. Ethic stewardship is achieved through the leaders of an organization. They do this through their actions (Czinkota, 2001). This is because their followers tend to watch what actions they are taking when faced with particular situations. Eventually, this stewardship is transferred to the followers (Caldwell et.al, 2008).
It is important that leaders in any organization lead by example. This will ensure that subordinates emulate their behavior. Eventually, their organizations will be reaping the benefits therein. In pursuit of long-term wealth creation, it is extremely crucial that individuals do so in accordance to societal values. These values include trustworthiness and ethical stewardship. At the end of the day, these individuals will turn out to great leaders. This has been depicted though the way that the management at McDonalds has dealt with its challenges in business (Moyles, 2006).
In order to achieve wholly in the corporate world, successful leaders must ensure that they follow these values. This is beneficial as it leads to appreciation of their goodwill and enormous wealth creation chances.