Business Ethics Fortnight
"More Fun than Decent People Think Should Be Legal"

New York University

Team Members: Karin Brummell, Maryrose Rappold, Carrie Rowe

Topic/Audience: MacDonald’s and Rising Obesity Rates in America

Executive Summary

As rising obesity rates in America become a growing health concern the correlation between obesity rates and the fast food industry’s proliferation of society can no longer be ignored. In our increasingly fast-paced society, McDonald’s has emerged as an icon of American culture, playing upon the need for quick and relatively inexpensive meals. The rise in health problems associated with obesity have led to an increase in public awareness about what we eat. This has manifested itself in public outrage towards the fast food industry making the industry fearful of the ramifications of this changing sentiment.

While the costs of obesity effect the entire American population, over the last decade there has been a disproportionate increase in the overweight, low-income demographic. Often times low-income areas consist of families whose limited time makes them dependent on the convenience of fast food restaurants such as McDonald’s. Much of this disparity can be attributed to the lack of nutritional education and available alternate goods within the McDonald’s menu structure. Another group that has experienced disconcerting increases in obesity is children. McDonald’s, along with other players in the fast food industry, have used coercive marketing ploys to gain a large customer base amidst its young consumers who are finding themselves without the proper nutritional options for living healthy lifestyles.

The current social trend is shifting towards heightened awareness of health issues, as well as protection of children from the serious health concerns arising from growing obesity rates. McDonalds has recently been cast in the legal spotlight, with the plaintiffs blaming their obesity on the company’s deceptive marketing. This will be the first of many future lawsuits if McDonald’s does not do radically change their approach.

The proliferation of the fast food industry has led to market saturation and to maintain long term profitability, McDonald’s needs to better accommodate health conscious consumers. Healthy can be profitable; through menu diversification McDonald’s can expand their consumer base. Further, the rising costs of obesity pose the risk of government intervention, primarily in the form of a fast food tax.

McDonald’s has taken steps to acknowledge the trend by offering several alternatives for adults and children to support healthier lifestyles. However, their effort still needs to be expanded through education, community involvement, and menu diversification. By taking these initiatives, McDonalds has the opportunity to act responsibly and to increase profitability.

 

 

 

 

 

 

 


 

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