International Islamic University Islamabad

CORPORATE GOVERNANCE

(MGT -703)

CASE STUDY

Course Instructor: Professor Danishmand

Submitted by:

Mehwish Mushtaq

Minal Rashid

Nabila Gulan

Samia Minhas

(MBA- 5)(1)
 A campaign against KFC
Corporation
Case Summary
This case is basically about the controversy between PETA (People for ethical treatment of
animals) an animal right group and KFC (Kentucky fried Chicken) the world largest chicken
restaurant chain. This cruelty finally leads to the campaign against the KFC regarding its cruelty
against chickens used by the KFC in its restaurants. PETA launched the same campaign against
the McDonald in 1999. To discuss the issue with KFC PETA wrote a letter to President Cheryl
Bachelder of KFC, PETA conducted several meeting with KFC management regarding this
issue; KFC was accused of using inadequate industry standards, and dealing with chickens very
brutally. To cover up this issue KFC adopted some ways but they didn’t properly followed the
ways that were pointed out by PETA, so PETA find them unsatisfactory and accused KFC of
dealing birds so roughly secondly they use unethical techniques to increase their weight and
enhance their growth so the result of such techniques lead to skeletal deficiencies and many other
kind of problems for chickens. After so much meetings and discussion when KFC didn’t made
any progress then finally PETA said that KFC has no interest in making real progress.

PETA as founded by Ingrid Newkick who really love animals she moved by looking at cats in
litter and took them in animal shelter but even their they were treated very badly so finally she
decide to launch a campaign that finally turned into full-fledged organization.

In an attempt to fight for animal’s right PETA used many tactics to grab people attention PETA
demonstrators dragged themselves down streets, protest pictures of women wearing fur in vogue
magazine. PETA freely used sexuality to make its massage attractive and used glamour people
and celebrity in a campaign against KFC. PETA harass company executives by using different
methods like protestors dressed like chicken and lock themselves in cages. PETA also took
advantage of procedural and legal mechanism to attack KFC. In 2003 PETA sued yum brands
alleging that KFC has made false and misleading statement on its websites but two years later
PETA withdraw the case as when KFC agreed to remove offended statement from websites.
Afterwards because of people’s pressure and PETA’s effort KFC issued a brief statement from
its website that is “KFC is committed to well being and human treatment of chicken’. KFC
defended itself by emphasizing that it follow animal welfare guidelines, 4 months after start of
PETA’s campaign against KFC, KFC spokesperson promised that just like US government we
will not negotiate with corporate terrorist and KFC counter attacked PEAT. KFC stood firm as
campaign moved second year PETA recommendations to boycott KFC had unclear effected
neither KFC sales got effected nor Yum’s.
Question No.1
Do you support KFC Corporation or people from ethical treatment of
animals in this controversy? Why?
Every day in countries around the world, animals are fighting for their lives. They are enslaved,
beaten, and kept in chains to make them perform for humans' "entertainment"; they are mutilated
and confined to tiny cages so that we can kill them and eat them; they are burned, blinded,
poisoned, and cut up alive in the name of "science"; they are electrocuted, strangled, and skinned
alive so that people can parade around in their coats; and worse.

We support PETA because People for the Ethical Treatment of Animals (PETA), with more than
2 million members and supporters, are the largest animal rights organization in the world.
Founded in 1980, PETA is dedicated to establishing and protecting the rights of all animals.
PETA operates under the simple principle that animals are not ours to eat, wear, experiment on,
or use for entertainment. PETA focuses its attention on the four areas in which the largest
numbers of animals suffer the most intensely for the longest periods of time: on factory farms, in
laboratories, in the clothing trade, and in the entertainment industry. They also work on a variety
of other issues, including the cruel killing of beavers, birds and other "pests," and the abuse of
backyard dogs.

Each year, more than 750 million chickens raised for KFC suffer from overcrowded conditions,
crippling bone and joint problems resulting from top-heavy breeding, callous handling,
inhumane slaughter techniques, and shortened life spans. Because chickens are intelligent and
sensitive animals with strong social bonds This is, of course, in reference to the recent actions
ont "animal rights" organization People for the Ethical Treatment of Animals (PETA), who all
have come out strongly opposed to fast-food chain Kentucky Fried Chicken (KFC)'s business
practice of treating its chickens. PETA initially filed litigation against the food franchise last
summer, claiming that the company was misleading its consumers with "disinformation" about
the way it handles its poultry by hiding "grotesque abuses inflicted upon chickens by suppliers."
Since then, it has rescinded its suit after KFC caved in to pressure by agreeing to alter its
statements on its Web site and its customer-service telephone service that the group says were
deceiving the public. In the letter to John Bitove, chairman of KFC's parent corporation, Yum
Brand: "If people knew how KFC treats its chickens, they'd never eat another drumstick."

Perhaps she should have taken notice of KFC's recent decision to implement an "animal welfare
program," which contains a set of guidelines, which governs everything from how the chickens
are raised to how they are skinned and killed in the slaughterhouse all in an effort to "guarantee
humane treatment" for the birds. The program was established last May after having buckled
under legal and public pressure from PETA, just so that their entire food supply would be
properly treated PETA believes that animals deserve the most basic rights consideration of their
own best interests regardless of whether they are useful to humans. Like you, they are capable of
suffering and have interests in leading their own lives; therefore, they are not ours to use for
food, clothing, entertainment, or experimentation, or for any other reason. Those who set out to
needlessly harm animals ought to be rightly condemned by his peers the same way we condemn
other immoral and unethical conduct.
Question No.2
What are the basic criticisms that PETA makes of KFC? Are they
convincing? Are their criticisms similar to timeless criticism of
business mentioned in the chapter?
People for the Ethical Treatment of Animal (PETA) held KFC responsible for the “cruel
Treatment” of chickens. PETA is angry about the inhumane treatment guidelines in its poultry
supplier contracts and using of the inadequate industry standards. The other main criticism that
PETA makes of KFC is that KFC had not introduce the specific and more extensive changes the
organization sought, these include:

 The introduction of gas killing

 Installation of cameras in slaughterhouses
 Introduction of mechanized chicken – catching
 A timetable for introducing new genetic strains of chickens
 Elimination of forced growth
 Provision of more room for birds to move around
 Allowance for instinctive behavior of chickens

The criticisms are convincing. Important note is almost all other major companies except KFC
had started to work according to the guidelines to protect the inhumane practices in their
factories. Moreover it is our ethical and moral responsibility to step out for this traditional,
absolute dominion of humans over animals in an unfair exploitation because animals are living,
sentient being capable of suffering, their interests are entitled to equal consideration with human
interests.

People in the businesses place profit before more worthy values such as honesty, love, piety,
justice, truth, tranquility and respect for nature and also when market economies grow large and
complex, businesses have a range of problematic impacts on societies.
Question No.3

What methods and arguments has KFC used to support its actions? Is
it conducting the best defense?

Over the past five years People for the Ethical Treatment of Animals (PETA) has become widely
recognized as one of the most effective campaigning groups in the world. With over 750,000
members worldwide and a history of famous victories over McDonald’s, Wendy’s and Burger
King, in January 2003 PETA launched a campaign against Kentucky Fried Chicken (KFC).

What makes the KFC campaign unique is that the chicken chain has refused to submit to PETA's
demands, which include stopping the use of growth-enhancing antibiotics and using gas, rather
than electric shocks and sharp knives, to kill chickens. As a result, company executives have
been doused with fake blood, criticized by the likes of Pamela Anderson, Al Sharp ton and the
Dalai Lama, and continually subjected to the circus like atmosphere of PETA protests at its
restaurants.

KFC measures or arguments after PETA’s campaign:

1. It convened an Animal Welfare Advisory Council composed of outside academic and industry
experts.

2. It started unannounced audits of growers and slaughterhouses.

3. It worked with industry associations that were developing new poultry welfare guidelines.

However, its efforts were unsatisfactory to PETA because they did not introduce the specific
and more extensive changes. These included:

1. Introduction of gas killing.

2. Installation of cameras in slaughterhouses.

3. Introduction of mechanized chicken catching.

4. A timetable for introducing new genetic strains of chickens.

5. Elimination of forced growth.

6. Provision of more room for birds to move around.

7. Allowances for instinctive behavior of chickens.

Question No.4

Is the range of PETA’s actions acceptable? Why does the group use
the controversial tactics? What are its sources of power in its
corporate campaign?

No, all the actions of PETA are not acceptable, because most of the actions used by the PETA
are controversial and they freely used these tactics in order to make their campaign successful.

These tactics are as follows:

1. Free use of sexuality to make its message attractive.

2. To protest pictures of women wearing fur in Vogue magazine, activist went to the
expensive Manhattan restaurant were its editor is having lunch and threw a dead raccoon
on her plate.

3. The activists of PETA doused the CEO of yum brands with blood and feathers when he
came on the opening of a restaurant.

So these kind of tactics used by PETA are not acceptable and are unethical because they are
attacking on people personally and exploiting the people and also violating the laws so that’s
why they are named as corporate terrorists by KFC and some other firms as well.

Question No.5
Do animals have rights? If so, what are they? What duties do human
beings have towards animals? Does KFC protect animal welfare at an
acceptable level?
Yes definitely animals have rights as they are also living creatures and they are also the creature
of Allah and they also have equal rights over earth.

Animal Rights

• They have right to save them for pain and suffering

• Equal and required space for their living

• Not to use them for scientific experiment

• Not to exploit them for human’s benefits

• Not to imprisonment them in zoos and circuses

• Even to use them for human purposes like for food or other stuff but alos keeping in
mind that they are living creatures.

The rights of animals are duties of human beings and the important thing is that use them for
your purpose but also keep in mind their rights as well.

Now the last part of the question, the KFC didn’t protect their right in acceptable manner so
that’s why PETA launched a campaign against them. Because they didn’t care about the
suffering of the suffering of animals they are just concerned about their cost and profits.