The McDonald's 'Beef Fries' Controversy


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Case Details:

Case Code : BECG017
Case Length : 12 Pages
Period : 1993 - 2001
Pub. Date : 2002
Teaching Note : Available
Organization : McDonald's, Shiv Sena, Vishwa Hindu Parishad (VHP), Bajrang Dal
Industry : Food, Beverages and Tobacco
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Troubled History

McDonald's has had a long history of lawsuits being filed against it. It had been frequently accused of resorting to unfair and unethical business practices - October 16th is even observed as a 'World anti-McDonald's day.' In the late 1990s, the company had to settle over 700 incidents of scalding coffee burns.

Reportedly, McDonald's kept the coffee at 185° - approximately 20° hotter than the standard temperature at other restaurants - which could cause third degree burns in just 2-7 seconds. An 81-year old woman suffered third degree burns on her lower body that required skin grafts and hospitalisation for a week...

The Beef Fries Controversy

With an overwhelming majority of the people in the West being non-vegetarian, products often contain hidden animal-based ingredients. Incidents of vegetarians finding non-vegetarian food items in their food abound throughout the world.

Whether a person has chosen to be a vegetarian for religious, health, ethical or philosophical reasons, it is not easy to get vegetarian food in public restaurants.

According to the manager of a Thai food cafe in the US, "We have a lot of customers already. We don't need to have any vegetarian food."

Commenting on this dilemma, a US based Hindu vegetarian said, "We can't blame anybody. You have to find out for yourself. If you have any doubts, try to avoid it. Otherwise, you just have to close your eyes and try to eat."...

The Aftermath

The courtroom battle had entered the 11th month when McDonald's announced that it would issue a new apology and pay $ 10 million to vegetarians and religious groups in a proposed settlement of all the lawsuits in March 2002...

Exhibits

Exhibit I: What Happened in India
Exhibit II: McDonald's - Financial Performance Summary
Exhibit III: McDonald's - Social Responsibility Statement


  

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