This paper will explore the green alliance between McDonald’s USA and Environmental Defense Fund (EDF). The reason for selecting this particular partnership is that strategic alliances have become one of the most popular forms of collaboration for businesses today. …
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The main purpose of the research is to present that corporate collaborations can be defined from different aspects but each definition has certain features in common. One of the salient features of such collaborations is that partners voluntarily decide to collaborate with each other for future common or synergistic business motive. During the process, the partners involved coordinate with each other, share and transfer resources amongst themselves. Independent partners agree to collaborate with other companies to accomplish a goal which they cannot do with their own resources. The resources pooled in by each of the collaborators promote the business goals of other partners; thereby, partners work together and share complementary resources to strengthen their objectives. There are different types of collaboration and they can be classified into four main groups: strategic collaborations, equity alliances, product and product collaborations, marketing collaborations, supply partnerships and other partnerships. Strategic collaborations include alliances, informal and gentlemen’s agreement and strategic alliances. Strategic alliances can be defined as the mutual agreement between two or more partners, without ownership of each other, to achieve common goals. It includes merging together two value chains of a minimum of two companies. However there is no limit to the number of organizations that can be part of the alliance. The importance of strategic alliances has increased significantly over the period of time. Not only small businesses but also larger businesses are making alliances either with large corporations or smaller businesses to sustain or gain complementary aims and objectives. Over the time, the trend towards environmentalism has become popular amongst corporate businesses. Previously, environmental watchdogs used to follow a solitary, opposing approach to promote corporate social responsibility and to make production, manufacturing and distribution environment-friendly. For organizations, these groups were vital to the functioning of the organization since they often had shares in the ownership of the company. Nevertheless, companies started to realize the need to move from a defensive position to a conciliatory approach towards environmentalists. Instead of regarding environment watchdogs as the main strategic danger to the organization, they embraced the notion of market-based environmentalism (1998). The purpose of such a relationship is embedded in the advocacy and publicity of corporate environmentalism. In fact, according to Milne, Iyer, and Gooding-Williams (1996), the vanguard of corporate environmentalism has become the alliances between environmentalists and corporations. There are a number of examples of such green alliances. One such example is the alliance between McDonald’s and Environmental Defense Fund (EDF). The alliance between McDonald’s USA and EDF began in 1989. With this partnership, McDonald’s has been able to make its production processes greener and make packaging more environment-friendly. The alliance has several benefits to both the partners. Environmentalists have for long been concerned about the impact of business activities on the environment. In a political environment that is largely confrontational, partnering with organizations is a new approach to bolster a healthy attitude towards the environment from a business point of view. This paper will explore the green alliance between McDonald’s USA and EDF. The reason for selecting this particular partnership is that strategic alliances have become one of the most popular forms of collaboration for businesses today. Moreover, the corporate-environmentalist relationship is becoming the mainstay of socially-active business partnerships after increasing pressures from marketing, political and global forces. According to the World Trade Organization, the advent of globalization, influx of technology into
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