Max’s Burger: The Dollar Value of Ethics
In July 2011, Nassar Group, a well-diversified conglomerate operating in Dubai, bought the
rights to manage Max’s Burger network of franchised outlets in Dubai. Max’s Burger is an
emerging American fast-food chain with franchised outlets across the globe. The move was a
personal project of Houssam Nassar, the Group’s managing director—and a businessman with
an excellent reputation.
Dubai’s fast-food market is overwhelmed with franchised restaurants. Meat quality at Max’s
Burger, however, was lower than the standards set by franchisors. This was all about to change,
because Nassar did not intend to jeopardize his reputation and image. Accordingly, as the new
operator of Max’s Burger outlets, he issued a directive instructing the warehouse manager to
decline any frozen meat shipment that did not comply with the franchisor’s set standards.
A few weeks after Nassar Group took over the management of Max’s Burger, a frozen meat
shipment was delivered to the Max’s Burger main warehouse. Upon measuring the temperature
of the meat, the warehouse manager found that it was few degrees outside acceptable limits. In
terms of governmental regulations, a couple of degrees’ difference in temperature would
present no risk to customers’ health; however, such a difference could have a minimal effect on
the taste and texture of the meat.
Prior to the change of management, and for many years before, the warehouse manager had no
second thoughts about accepting such a shipment: no food poisoning claim was ever filed
against Max’s Burger, and taste inconsistencies never bothered anyone enough to complain.
Also, the company supplying the meat to Max’s Burger is owned by a relative of the warehouse
manager.
With the new directive in place, however, the warehouse manager was unsure about his
decision. Even though he knew that Nassar would have no way of finding out that the received
meat was noncompliant, he wasn’t as sure about his decision this time around.
Questions:
1. Does the decision to accept or refuse the frozen meat shipment call for ethical or legal
considerations? Why?
2. Identify the stakeholders who will be influenced by the decision to accept or refuse the
frozen meat shipment?
3. What type of decision-making framework would you advise the warehouse manager to
adopt in order to help him reach an optimal decision? How will your suggestion help?
