Corporate Social Responsibility of McDonalds - Assignment Example

Corporate Social Responsibility Corporate social responsibility is giving back what you get from the consumers. McDonalds is one of the leading fast food chains of this world. It is also a leading example of corporate social responsibility that evidently participates in making the world a better place to live in by taking economic, social and environmental initiatives. However the only drawback in McDonalds CSR is the issue of obesity that it has been frequently blamed for. Corporate social responsibility is the practice of including initiatives that are for the benefit of the society. It is the key to earn loyalty from customers and give back a part of your profits to make the world a better place. CSR includes a variety of tactics such as environmental, philanthropic and ethical (Fallon, 2014). A new field of corporate social responsibility has emerged that encourages companies or organization to take steps and initiatives in the interest of all stake holders. The public or consumers are also considered stake holders and hence the organization should create a balance between the interests of both stake share holders (MacEachern, 2008). McDonalds is the leading international fast food retailer which is spread over 36,000 locations and serves approximately 69 million customers in 100 countries daily. Most of the McDonalds branches are run by independent businessman and women. The success behind the company’s success is the system which aligns the franchises and supplies. By the implementation of this system McDonalds was able to satisfy the customers with what they wanted. This system also allows local customization of product. McDonalds focuses on three priorities for the optimization of its menu; to modernize the consumer’s experience, to increase accessibility to McDonalds with convenience and to optimize the menu. McDonalds plan to win strategy focuses on people, product, place, price and promotion in order to increase the customers experience regarding McDonaldss. McDonalds is considered to posses the largest framework when the subject of CSR is discussed. Their motto of CSR “responsible food for a sustainable future” outlines their social responsibilities. A board of directors is responsible for keeping McDonalds up to the standards that is being guaranteed to their stake holders. The first step taken by this board of directors was to create a code of conduct in order to ensure that every supplier follows this code of conduct. This agreement is then signed by the suppliers. McDonalds also considers the three E’s that is ethical responsibility, environmental responsibility and economic responsibility. This serves as the vision for the supply chain management. The McDonaldss supply chain also does not allow the inhumane treatment towards animal. For this they have established an audit program which is based on Animal Welfare Guidance principles so that none of the animals are abused or harmed. McDonaldss is also working in collaboration with the suppliers so that the utilization of water, air, energy and waste should be kept minimal. Also, McDonaldss has partnered up with various organizations that work towards the protection of rainforests. The company also operates a charity house name Ronal McDonaldss House Charities which is considered the largest CSR initiative taken by the company. This charity house works on the donations given by the consumers themselves via internet or through charity boxes that are placed at almost every franchise. The RMCH was build to provide the children with health care facilities and to support the child through the medical treatment that he was going through (Paetzold, 2010). McDonalds also customizes CSR around the world depending on the region at which the franchise is being operated. For example McDonalds has taken initiatives to reduce reuse and recycle in Japan which is a highly populated country with significant concerns over pollution. Similarly, it has taken stand on water conservation in Australia (Pride & Ferrell, 2008). McDonalds not only takes care of environment and social responsibility but also considers its employees. Recently on April 1st 2015, McDonalds announced benefit for its employees increasing their wages and providing paid time off for its full time and part time employees. McDonalds also encourages education among its employers. McDonalds has initiated a program Career Online High School (COHS) through which the employers can earn a high school diploma wherever it is convenient for them. McDonalds assists them in earning credits for college and assists them in tuition (News.McDonaldss.com, 2015). However, the only issue that is not adequately addressed by McDonalds is the fact that McDonalds is also the leading fast food restaurant that has cause a boost in obesity around the world. McDonalds has been constantly criticized for the spread of obesity in various countries especially USA and UK. The products are mostly fattening, they mostly target children and their products are often less costing which is why it results in increased consumption. In order to increase the profits, the company has taken certain shortcuts while developing and offering of their products. Their strategic marketing tactics are targeted to customers who are more prone to be affected by the consequences. This may lead to the growth of their success and wealth but happiness in a box may also bring touch of unhappiness with it in the form of obesity and weight issues for those who cannot control their appetite. McDonalds mostly target the children in countries where the children are not fond of eating the traditional food. Hence, they present their happy meals with toys and various appealing drawings and cartoons that easily attract almost every child. The company was once also sued for opening up one of its franchises in between residential and school area. The local residents when realized an increase in obesity in their area, demanded the construction to be removed. McDonalds has also increased it meal size over the years. Such as a large soft drink in 1955 contained 7oz of soft drink whereas in 1990 it increased to 32 oz. These concerns over health issues are never clearly addressed by the company. The only step taken as a result of this was that McDonalds started to print the elaborate and detailed contents of the product on the boxes (Stakeholders:Uncensored, 2014). In order to deal with these issues McDonalds should try and incorporate healthy products in their items. They should also encourage health and fitness related advertisement in their marketing strategies. Certain ingredients should be replaced which are low in fat; such as the use of vegetable oil can be replaced with a healthier olive oil. McDonalds can also work on educating their consumers relating to the contents of their meals and their nutritional value. McDonalds has played a great role economically, environmentally and socially but it has never catered to the issue of obesity for which it is consistently blamed for and although it might have never actually mean to cause any harm to the public, but it simply enhanced the taste of their products that one could not simply resist. Since every person on this world is considered as an individual customer, therefore, we can make our own choice and decide on what’s good or bad for us and eventually it all lies in the hands of the stake holders to promote or demote a business. References Fallon, N. (2014). What is Corporate Social Responsibility?. BusinessNewsDaily.com. Retrieved 5 April 2015, from http://www.businessnewsdaily.com/4679-corporate-social-responsibility.html MacEachern, A. (2008). What is the difference between a shareholder and a stakeholder?. Investopedia. Retrieved 5 April 2015, from http://www.investopedia.com/ask/answers/08/difference-between-a-shareholder-and-a-stakeholder.asp Paetzold, K. (2010). Corporate social responsibility (CSR). Hamburg: Diplomica-Verlag. Pride, W., & Ferrell, O. (2008). Marketing. Boston: Houghton Mifflin Co. News.McDonaldss.com,. (2015). McDonaldss - press-releases. Retrieved 5 April 2015, from http://news.McDonaldss.com/press-releases/McDonalds-s-usa-announces-new-employee-benefit-package-including-wage-increase-an-nyse-mcd-1185520 Stakeholders:Uncensored,. (2014). The Morals Of McDonalds's. Retrieved 5 April 2015, from https://stakeholderdoce.wordpress.com/2014/11/26/the-morals-of-McDonaldss/ Read More