Question

Scenario # 2 :

Chicken International Group

You are the CEO of a chicken-processing company. The Vice President of marketing informs you that if you label your chicken as “free range” you can charge 20% more and greatly improve profit margins.

You find out that all that needs to be done to legally use the term “free range” is to open the door to the hen house for 5 minutes a day. This provides the chickens with access to the outdoors when, in fact, very few chickens will wander out when the door is open for 5 minutes. Moreover, the term “free range” may be used regardless of space per chicken, number of chickens, or amount of time spent outside.

1. What is the ethical dilemma or issue?

2. Identify and discuss at least 3 alternatives (options) that the company could consider. For each option
indicate if it is legal and ethical, probably legal, but unethical, or illegal, and unethical.

3 What are your recommendations? In other words, of the several alternatives you identified, what do you think the company should do?

4 What is your rationale for your recommendations? In other words, why do you recommend this course of action?

Answer 1

Answer1:

In this case, the Vice President of Marketing is an example of greed and a 20% profit margin is a greedy offer that lies in front of you. It is very true that we need to increase the cost while the cost of the products in the market is rising. However, in what way? In this ethical dilemma, we have to question how to increase the cost of the chicken without being greedy while still acting legally and ethically. The issue in here is that is 5 minutes of opening cage time is enough to label the chicken's free-range chickens? If we let the chickens be out for a longer time, it will cost more money to operate the farm in that way. If we do not, we would be lying to consumers by labeling our product's free-range.

Answer2:

Instead of opening cages for a longer time of period we can change facility structure. Existing windows size can be replaced by a wider size, so it is big enough that fresh outside air can be easily ventilated through the whole cage facility. Another alternative is traditional poultry farming, where no cages exist inside of the facility. In that way, chickens have more space to walk around. The traditional farming also made drinking water pipes and food supplies much higher, so chickens have to jump and try harder to reach their food. My last alternative would be keeping chickens in the facility at night time and let them out to a closed farmyard during the daytime. This alternation has great advantages for the company, farmers, and consumers.

Answer3:

I think that the chickens should be raised free-range because they are naturally healthier. They are given the opportunity to act like chickens and are given adequate sunlight which is essential for proper growth. Free-ranging provides a larger and more varied environment for the chickens. Also, letting the chickens have free-range is cost-effective. They eat bugs, grasses, seeds, leaves and other treats they find outside. They can scratch and dig in the dirt to find bugs and leaves and to forage for other things to eat. They can run and exercise their wings by flying short distances. They can snooze in the sun or find a nice place to take a dust bath which is essential in controlling parasites and conditioning their skin. Being free-ranged, chickens are able to produce higher quality eggs.

Answer4:

The company should work ethically and morally correct which would help it to grow. Deceiving and misleading things and information given to the customer may help in bringing a sound profit in the company, but this may stop when the public would lose trust in the quality of the product. According to me, I recommend such a solution because a company doesn't stand on the profit of a small duration; rather it stands on the truth and belief of the customers. Once the customers start to face trust issues, it would become impossible for the company to avail even the minimal profit.