Mcdonald's lawsuit french fries

Identify key global (e.g., economic and cultural) factors that may impact business decisions.
Analyze the impact of these key global economic and cultural factors on business decisions. As part of your analysis, consider stakeholders affected by the business decisions made.
Provide business recommendation(s) for the situation presented in the case scenario. As part of your best recommendation, develop and compare alternative solutions, considering the advantages and disadvantages of each approach.
Identify any ethical dilemmas presented in the case scenario.
Apply ethical and societal concepts to propose and defend a responsible course(s) of action.[CMR $ BECG/o17 Coalor ror ltronogomenl los€orch ruu,lcmalndlE.org The McDonald's 'Beef Fries' Controversy "Hindus and tegetarians all over the world feel shocked and betrayed by McDonald's deception and ultimate gyeed. " - Attorney Harish Bharti, on filing the lawsuit against McDonald's, in May 2001. "These are the wrys thefries are made in the US, andwe don't hqve any plans to change." - Walt Riker, McDonald's spokesperson, in May 2001. A CONTROVERSY ERUPTS In May 2001, a class action lawsuitl was filed against the world's largest fast-food chain McDonald's, in Seattle, US. The lawsuit alleged that the company had, for over a decade, duped vegetarian customers into eating French fries2 that contained beef exkacts. The lawsuit followed a spate of media reports detailing how the French fries served at McDonald's were falsely promoted as being 'l00%o vegetarian.' to comment on the issue, the company issued a 'conditional apology,' admitting to using beef flavoring in the fries. The firore over the matter seemed to be settling down, when to McDonald's horror, some of its restaurants in India were vandalized. Activists of Hindu fundamentalist groups - the Shiv Sena, the Vishwa Hindu Parishad (VHP) and the Bajrang Dal, staged a demonstration in front of the McDonald's head office in Delhi protesting the alleged use of beef flavouring. They submitted a memorandum to the Prime Minister, demanding the closure of all McDonald's outlets in the country. Although McDonald's initially declined Activists also staged protests in front of McDonald's restaurants in south Mumbai and Thane. Mobs ransacked the outlet at Thane, broke the glass panes and smeared the McDonald's mascot Ronald with cow dung. About 30 people were arrested and later let off on bail. Company officials estimated the loss to the outlet at Rs 2 million. Officials at McDonald's lndia quickly announced that the vegetarian products served in India did not have any non-vegetarian content (Refer Exhibit I for details). However, despite this reassurance, the anti-McDonald's wave refused to die down. Meanwhile, more cases were being filed against McDonald's - this time in California, US and Canada. It seemed certain that the company would have to shell out millions of dollars to settle the class action lawsuit representing the I million US based Hindus and l5 million other vegetarians. A class-action suit is a suit liled to protect the interests of group of individuals who are affected or may be aftbcted by a perceived aaud or misconduct of a similar natuie. The number of people could be as few as under l0 to millions. Typically, class action suits in the US drag on for years and very often parties settle out of court within the first year of filing. Thinly sliced, finger-sized pieces of potato. deep tiied and served with a sprinkling ol salt.