Business Ethics and Long Term Revenue

Cura personalis is a Latin phrase that has guided the Jesuit tradition for almost five hundred years. Members of the Society of Jesus have worked for centuries to instill a sense of cura personalis or “care for the entire person” in their students. This idea of caring for the person in entirety translates into the ethics of individuals in business. Furthermore, individuals apart of an organization emulating a certain standard of ethics often reveal the larger motives of a company. In turn, this can lead to success or failure. The overall performance of a company reflects the relationship between their personal values and commercial success. Business ethics and morals correlate to long- term profitability and lasting brand loyalty.

PepsiCo, known for their soda and chip brands is an example of sustaining ethical conduct. In their code of conduct they state, “PepsiCo is committed to performance with purpose” (“PepsiCo Purpose”). This purpose can be seen in their commitment to “delivering sustained growth through empowered people acting responsible and building trust.” Since the company’s start in 1965, after merging Pepsi-Cola and Frito- Lay, the value of stocks has steadily increased (“Google Finance: PepsiCo”). Today, their net revenues have surpassed $65 billion, an ode to their commitment to performance with purpose. PepsiCo demonstrates this through their human, environmental and talent sustainability. The company has set environmental goals for the year 2015, which they are rapidly accomplishing. They are dedicated to bettering the nutrition of their products and creating a diverse working environment. Through a standard of cura personalis for the individuals they employ, sell and buy from, PepsiCo has commanded commercial success leading to high profitability (“PepsiCo Purpose”).

The success enjoyed by PepsiCo has set a high precedent for companies entering the chip and beverage industry and have created an enduring brand loyalty. The brand loyalty is solidified by customers acknowledging PepsiCo’s responsibility to the community, their employees and their product. A strong consumer base and united work force are the result of their responsibility. The brand loyalty created by PepsiCo’s values of empowerment and trust ultimately promotes the lasting success of the company.

McDonald’s is the epitome of a company promoting admirable values above their not so ethical practices. Since the early 2000s McDonald’s profit has shot up as the company expanded into countries around the world (“Google Finance: McDonald’s”). McDonald’s has become a well-known franchise in the United States for its fast service and, perhaps more notably, for unhealthy food. Their vision is essentially to continue being in business (“Our History”). Compared to PepsiCo their business model is not rooted in ethics. Unlike their famous commercials promoting happiness, their mass production of food does not reveal the same smiles from employees. Most of McDonald’s employees are paid minimum wage as they prepare homogenous products (“Gibison”). The documentary Super Size Me brought attention to the side affects of consuming the fast food produced by the McDonald powerhouse. McDonald’s has two qualities that keep them abreast, their convenience and inexpensive products. This drives consumers to purchase McDonald’s on the run, but with increasing nutrition awareness and a rise in the economy McDonald’s profits seem to be growing at a decreasing rate. The Ronald McDonald House Charities promote the company’s philanthropic side, but this does not out weigh the lack of responsibility they portray in other areas.  This lack in responsibility results in a loss of customers and reputation. In the past year stock prices have plateaued. McDonald’s values are increasingly ambiguous as scandals arise and business practices are exposed. McDonald’s illustrates short- term profitability through unethical practices and clever advertising. In the long run, their unethical traditions are indicating future profit loss.

McDonald’s does not portray the brand loyalty that PepsiCo does. New fast food franchises are not using McDonald’s as a business model. Chipotle, a Mexican food franchise promotes sustainably produced food and respect for their workers, animals as well as the environment (“Food with Integrity”). Newer franchises are specializing in salads, tacos or vegetarian options from the gecko. They create a nutritional value and furthermore brand loyalty that McDonald's failed to produce. Words associated with McDonald’s range from greasy to cheap. The McDonald product that is perceived by society stems from their production and employee treatment. The continual negative exposure of McDonald’s has severed the brand loyalty as consumers seek new fast food restaurants.

The Society of Jesus embedded cura personalis into their teachings almost five centuries ago. Living out cura personalis has resulted in the development of business leaders apart of successful and ethical companies. The long-term profitability and brand loyalty presented by PepsiCo and McDonald’s illustrates cura personalis working on the front line in relation to company success.

Works Cited

"Food with Integrity." Chipotle. N.p., n.d. Web. 24 Sept. 2012.

<http://www.chipotle.com/en-US/fwi/fwi.aspx>.

Gibison, Aimee. "McDonald's: A Good Image with A Bad Name." N.p., n.d. Web. 24 Sept.

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"Google Finance: McDonald's Corporation." Google Finance. N.p., n.d. Web. 24 Sept. 2012.

<https://www.google.com/finance?client=ob>.

"Google Finance: Pepsico, Inc." Google Finance. N.p., n.d. Web. 24 Sept. 2012.

<https://www.google.com/finance?client=ob>.

"Our History." McDonald's. N.p., n.d. Web. 24 Sept. 2012.

<http://www.mcdonalds.com/us/en/our_story/our_history.html>.

"PepsiCo Purpose." PepsiCo. N.p., n.d. Web. 24 Sept. 2012.

<http://www.pepsico.com/Purpose/Overview/Performance-with-Purpose.html>.