Choose three of the following four questions. Be sure to read through each prompt and answer the questions as completely as possible. [33 pts each] For extra credit, you may choose to answer a fourth question for up to an additional 10 points. For it count, you must specify which question you’d like to count for extra credit. 1) In 2012, the “Fight for 15” movement began when two-hundred fast food workers in New York City walked off the job to demand union rights and a pay increase of $15 per hour ($31,200 before taxes). In response, McDonald’s pledged to raise the wages of all employees at corporate stories to at least $1 per hour above the local minimum wages. At the time, Steve Easterbrook, McDonald’s CEO, stated, “A motivated workforce leads to better customer service, so we believe this initial step not only benefits our employees, it will improve the McDonald’s restaurant experience.” However, since then, employees have complained that McDonald’s has failed to live up to its pledge; moreover, McDonald’s has begun to unveil self-service kiosks that effectively replace their need to hire as many human employees. On the one hand, this move is being criticized as contrary to the sentiment expressed by Easterbrook’s statement concerning the value of employees, and as a way for McDonald’s to completely abandon its pledge. On the other hand, some have noted that this shift is a compromise as self-service kiosks will reduce the number of employees to a level where McDonald’s – whether corporate stores or not – could handle the $15 per hour demanded by “Fight for $15.” 1a) Members from “Fight for 15” argue that McDonald’s failure to live up to their pledge, as well as their moves towards a semi-autonomous restaurant experience, constitutes a lie. They argue, for example, that McDonald’s was bluffing in order to buy some time to develop their self-service kiosks. On the other hand, one could argue that since McDonald’s never provided a timetable for implementing those wages nor swore to keep the same number of employees, that their pledge is still valid and unbroken. Using resources from the class, do you believe that McDonald’s pledge is a lie or not? Why or why not? Be sure to note what aspects of the case, you see as being significant for arriving at your conclusion. [7 pts] 1b) Carr argues that all forms of deception are permissible in business transaction since everyone involved – from producers to consumers – understands that that is simply how business is done. In reply, one prominent objection argues that deception may be harmful in the long run since not all aspects of business are competitive endeavors. Articulate this argument against Carr, and what is its relevance to the McDonald’s case? Do you agree with the objection? Why or why not? [13 pts]
Professional and Business Ethics
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