Cengage Advantage Books: Essentials of Business Law 5th Edition by Jeffrey Beatty,Susan Samuelson

Exercise 24

Ethics Case: Mickey Weighs In
As we have seen, many food companies manipulate products to maximize their appeal, without regard to the health of their customers. Disney is taking a different approach-announcing recently that only healthy foods can be advertised on its children's television channels, radio stations, and websites. Candy, fast food, and sugared cereals are banned from Mickey land. Kicked to the curb are such childhood favorites as Lunchables and Capri Sun drinks. In addition, sodium must be reduced by one quarter in food served at its theme parks. Nor does Disney permit its characters to associate with unhealthy foods. No more Mickey Pop-Tarts or Buzz LightyearHappy Meals. Said Disney chairman, Robert Iger, "Companies in a position to help with solutions to childhood obesity should do just that."
Disney will certainly lose advertising, but would not say how much. Food sales at its theme parks may decline if children find the options less appealing. Its licensing revenues are also affected by its decisions to remove Disney characters from the likes of Pop-Tarts and Happy Meals.
On the other hand, this healthy initiative will enhance its reputation, at least with parents, who increasingly seek healthy food options for their children. Disney will profit from license fees it receives for the use of a Mickey Check logo on healthy food in grocery aisles and restaurants. This food initiative may also help forestall more onerous government regulation.
What obligation does Disney have to its young customers Does it owe them anything other than entertainment