McDonalds Corporate Social Responsibility - Case Study Example

?Business case analysis Business Case Analysis Case study Corporate social responsibility is the ability of a company to conduct its business in an ethical manner and in the best interest of the community. In addition, corporate social responsibility entails that the company is in a position to respond positively to emerging societal expectations and priorities. CSR is about how firms or organizations areable to manage operation of the business to produce positive impact on the wider society. Social responsibility is very vital in creation of wealth by a company in that if managed properly should improve the competitiveness of business and maximize the value of creation of wealth to the community. With the growing public awareness and desire for socially responsible businesses, it is significant to note that companies consider planning for future socially responsible business operation (Kotler & Lee, 2004). An analysis on McDonald’s social responsibility evaluates an example of corporate social responsibility shown by McDonalds. McDonald is the largest company in the world that deals in hamburger food restaurants. In reference to McDonald’s corporate social responsibility, the company is taking action, maintaining openness in communication with its customers and shareholders and attaining results. The company works with its suppliers so as to promote socially responsible behaviors or practices in its supply chain as an integral part of the company’s supply chain strategy. This is part of the company’s social responsibility. In addition, the company has designed its own its code of conduct for suppliers which explains how the company desires or expects its suppliers to handle and treat their workers. The company has managed and succeeded in supporting suppliers who are removing sow gestation crates in supply chain. For instance, 50% of its Cargill contracted hog farms are all in new generation systems that do not apply gestation stalls for the benefit of the wider community. Additionally, McDonalds gives part of its pre-tax profits to corporate charity or philanthropy as part of its strategy to be socially responsible. The company conducts philanthropic contributions via the Ronald McDonald Houses Charities which focus to create, get and support programs that enhance and improve the well being and health of children in society. This body ensures that children in vulnerable communities can receive medication and dental treatment in order to improve their health and strengthen their respective families. This program aims to change and improve the lives of communities. As part of it being socially responsible, McDonalds has formulated a way of engaging communities in operations through community based projects. Community based projects have become significant aspect of development assistance among world socially responsible organizations. For instance, McDonalds launched the Flagship farms initiative in Europe that aimed at employing innovative farming methods and practices across Europe and conducts research on how ethical farming practices can be included into commercial farming systems. Therefore, an economic relationship means a strategy of involving communities into business activity of the organization in order to makes sure that communities are embedded in corporate supply chain strategy so as to establish a sustainable business. Case study 2 McDonalds has got well written and designed corporate social responsibility program that it has well implemented in order to ensure that communities are integrated in its business and that it benefits from its business operation. For instance, the McDonald Company delivered its inaugural corporate social responsibility report in which the company sought to get extensive feedback from stakeholders and community. The company has included several things in its social responsible program that aim to make it more socially responsible. For instance, they have implemented program that aim to develop sustainable agriculture, employment policies and practices, health and nutrition. The company has environmental principles that aim to attain a sustainable society in more than 117 profitable growth restaurants globally. Additionally, in order to ensure that it achieves employee experience and employ a diverse long-term target, it has acknowledged and included that it has a strong community workforce (Bolton, 2011). McDonalds is committed to its holistic program in order to incorporate everyday in its operations in that it has adopted a holistic approach referred to as consumer high quality and information-high quality through choices that aims to develop high quality menu that offers customers with a range of diverse choices that meet the desires and demands into a balanced diet. The consumer friendly nutritional program ensures that they make the right decisions thus continuing to offer easier access o user friendly nutritional data. In addition, THE COMMUNICATE RESPONSIBLY initiative continues to shape and refine communication and marketing practices of the company particularly to children. Furthermore, the company has managed to be environmentally disciplined in that it has accomplished packaging green energy and restaurant efficiency waste design that aim to protect the environment from pollution and thus not affecting communities around it (McDonalds Company Information, n.d). In addition, the company makes sure that it reaches to the community in the sense that it has developed programs designed for charity purposes. For instance, they support families and children to make sure that they are healthy and happy. The company s reaching out and giving to the society through McDonald House that provides charity to vulnerable children and their families in form of medications and food. The McDonald House program ensures that children in vulnerable communities can receive medication and dental treatment in order to improve their health and strengthen their respective families. The other program that shows that McDonald has a well designed social responsible strategy is the Community global connection program that the company uses to engage in sponsorship of community events such as games. For instance, during the FIFA world cup in South Africa, as part of reaching out and giving to the community, McDonalds mobilized 1400 children aged 6 to 10 years from 47 countries who had an opportunity to walk with football stars as part of the company’s escort program (McDonalds Company Information, n.d). Case study 3 The table below illustrates SWOT analysis of McDonald Company STRENGTHS WEAKNESSES Large market share Discounts by suppliers Price leader Large variety of goods Good leadership Operational effectiveness Community outreach programs (Bateman & Snell, 2004) Poor management of employees Lack of a detailed mission statement Low wages and poor working conditions OPPORTUNITIES THREATS International expansion Digital markets Technological advancement Partnerships Commercial Banking Opposition groups especially in Asian countries Environmental issues Unhealthy competition Reliance on suppliers products Case study 4 Management function of the new foodservice industry involves responsibility for effective planning and regulation. Management is a dynamic function that incorporates various activities and elements. For instance, managerial activities of the new company will include operative roles such as finance, marketing and purchase so as to effectively compete with McDonalds. Some of the managerial functions include planning, organizing, directing, staffing and controlling (Ferrel & Hartline, 2005). The new company will figure out how to operate the company for future course of the company and decide the appropriate course of the company so as to be able to outsmart our competitors. More so, the company is determined to bringing together financial, physical and human resources in order to develop a productive relationship among its workers and managers to attain organizational goal. The company identifies what type of activities it will conduct, assigning duties and coordinating authority. Furthermore, the company directs its workers to what is required so as it avoids confusion among its employees. For instance, it engages in motivation, supervision, communication and leadership in order to achieve organizational goals. The company controls its activities in that it is in a position to measure accomplishments against standards and correction. Controlling will ensure that everything that occurs in a planned manner which enables the company to be able to make predictions of deviations before they occur. Transformational leadership is the kind of leadership that stimulates and inspires followers to achieve extraordinary goals and objectives, as the leader himself develops his leadership capacity. The uniqueness of transformational leadership is that it entails leadership based on meaning and values. It is far reaching and goes beyond immediate goals but also exert focus on the future needs (Bass, 2005). This leadership style will enable my food Industry to compete with McDonalds since it entails several leadership styles and managerial functions. Idealized influence or what can also be called charisma is a key component of transformational leadership. These involves how a leader behaves and to what extent he is able to impart his convictions to his followers. A leader carrying himself as a role model with strong capability to take a stand guided by values he strongly believes in becomes admirable. Secondly, motivation becomes a key element in transformational leadership. A leader should be able to inspire his followers as they are guided towards a common purpose. He should be able to portray optimism even in the face of adversity. This type of leadership advocates for what would be referred to us intellectual stimulation. Offering a room for creativity free from a lot of red tapes predisposes leader’s followers to a greater level of confidence. The followers are able to effectively connect with their leader without fear of any punitive measures against them. In this leadership model, a leader should be able to enhance positive change among his followers. It focuses on the personality of the leader instead of the actions of the same leader (Bass, 2005). To effect change and impart it among individuals requires a lot of assertiveness which is a must trait that a leader should posses if not learn. Change may be costly to an organization if not handled in the right manner. It includes all aspects of change be it a positive change or negative change. Change involves transition and is complex in nature. Without extreme care, several factors are likely to go wrong and this is one major challenge to transformational leadership model. For change to be effective and minimize negative challenges that are most likely to occur, three dimensional aspects need to be adequately addressed (Bass, 2005). These include, inspiring and motivating those affected by change. This includes emotional motivation. Emerging factors in the post change phase and their impacts must adequately be addressed. Management of people’s actions that assist them in undertaking whatever is expected of them. The other key factor to take note of is the fact that changes of an organization cannot be separated from personal change (Bass, 2005). A leader may be caught off guard by some changes living him incapacitated. The shift in grounds usually a major feature of change ultimately requires adaptive mechanisms and solutions. Important aspect to note is that adaptive mechanisms and responses are only manageable when there is individual capacity to attain it. Man by nature have since history been resistance to change which makes every aspect of change a frightening experience to him. Case study 5 Corporate social responsibility entails that the company is in a position to respond positively to emerging societal expectations and priorities. CSR is about how firms or organizations are in a position to manage operation of the business to produce positive impact on the wider society. Critical evaluation and analysis on McDonald’s social responsibility evaluates an example of corporate social responsibility shown by McDonalds. McDonald is the largest company in the world that deals in hamburger food restaurants. In reference to McDonald’s corporate social responsibility, the company is taking action, maintaining openness in communication with its customers and shareholders and attaining results. For instance, the company has adopted socially responsible programs in order to engage and give put to community. For example, as part of it being socially responsible, McDonalds has formulated a way of engaging communities in operations through community based projects. Community based projects have become significant aspect of development assistance among world socially responsible organizations. More so, the company works with its suppliers so as to promote socially responsible behaviors or practices in its supply chain as an integral part of the company’s supply chain strategy. This is part of the company’s social responsibility. McDonald has a strong social responsibility program that aims to incorporate societies in the management and operation of the company. The company has included several things in its social responsible program that aim to make it more socially responsible. For instance, they have implemented program that aim to develop sustainable agriculture, employment policies and practices, health and nutrition. The company has environmental principles that aim to attain a sustainable society in more than 117 profitable growth restaurants globally. Additionally, in order to ensure that it achieves employee experience and employ a diverse long-term target, it has acknowledged and included that it has a strong community workforce. The other program that shows corporate social responsibility program of McDonald is that it has initiated the McDonald House program ensures that children in vulnerable communities can receive medication and dental treatment in order to improve their health and strengthen their respective families (McDonalds Company Information, n.d). The other program that shows that McDonald has a well designed social responsible strategy is the Community global connection program that the company uses to engage in sponsorship of community events such as games. SWOT analysis of McDonalds illustrates that the company has the following strengths; Discounts by suppliers Price leader Large variety of goods Good leadership Operational effectiveness Community outreach programs Large market share The weakness of the company includes; Poor management of employees Lack of a detailed mission statement Low wages and poor working conditions Opportunities of the Company include; International expansion Digital markets Technological advancement Partnerships Commercial Banking Threats of the company include; Opposition groups especially in Asian countries Environmental issues Unhealthy competition Reliance on suppliers products The new company developed presents stiff competition to McDonalds has adopted transformational leadership style whereby the leader of this company develops his own leadership capacity. This leadership style is far reaching and goes beyond immediate goals but also exert focus on the future needs. This leadership style will enable my food Industry to compete with McDonalds since it entails several leadership styles and managerial functions. In addition, it advocates for what would be referred to us intellectual stimulation (Bass, 2005). Offering a room for creativity free from a lot of red tapes predisposes leader’s followers to a greater level of confidence. It is also fused in motivating its workers so that they have maximum concentration on their work without interruption. Management function of the new company included planning by projecting the future course of the company and the means that it applies to achieve this course. In addition, the company identifies what type of activities it will conduct, assigning duties and coordinating authority. Furthermore, the company directs its workers to what is required so as it avoids confusion among its employees. For instance, it engages in motivation, supervision, communication and leadership in order to achieve organizational goals. Summarily, corporate social responsibility is essential for the success of the company since it takes into consideration the demands and needs of the community. This gives it an upper hand in creation of wealth because the community will be more willing to engage in the activities of the company. Companies should have well formulated CRS programs so as to effectively assist vulnerable families in society. McDonalds for instance has its CRS programs such as escort programs that have enabled to succeed in more than 117 countries globally. References Bass, B. (2005). Transformational Leadership, New York: Lawrence Erlbaum Associates. Bateman, T. S., & Snell, S. A. (2004). Management: The new competitive landscape (2nd Ed.). New York, NY: McGraw-Hill. Bolton, D. (2011). Key Concepts in Corporate Social Responsibility. New York, NY: Sage Publishers. Ferrel, O. C., & Hartline, M. D. (2005). Marketing Strategy. (3rd Ed). Mason, Ohio: Thompson South-Western. Kotler, P., & Lee, N. (2004).Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. New York, NY: Wiley. McDonald's Company Information. About. Retrieved on May 9 2012 from http://www.mcdonalds.com/usa.html. Read More