(McDonald’s) Corporate Social Responsibility

McDonald’s (Corporate Social Responsibility)

            Corporate Social Responsibility (CSR) places an important role nowadays for business purposes. Basically, CSR is a long term growth investment where the company manages its business process by concerning positive impacts on society. McDonald is one the global company where it’s CSR becomes a crucial part in the industry. McDonald’s corporation is consider one of the largest fast food chain in this world which specialise in selling hamburgers, french-fries, and soft drinks. It remains the industry leader with more than $15.9 billion in sales and more than 11,000 units in the United States. (Gerald, V. 2003). In 1940, the first McDonald restaurant was set up by the two brothers who name Richard and Maurice McDonald in San Bernardino, California. (McDonald Brothers, 2007). Due to their famous hamburgers selling at a nominal price of 15 cents, it gradually attracts teenagers. Hence, a businessman name Ray Kroc who was meanwhile the first businessman who applies the principles of mass production in a service industry then realized that one of his largest customers in California based restaurant was owned by the McDonald brothers. He convinced the owners to make him their exclusive agents in order to expand their business outside California. Hence, they begin expand their franchise outside the USA in 1967 until now. Today, McDonald had successfully strengthened their foundation. The aspect of McDonald corporate performance in this society had place a large impact on highlighting both areas of achievement and moreover, there will still be some improvement needed to this particular company.

            McDonald’s social performance had involved in several aspects such as environmental, animal welfare, Ronald McDonald House Charities and healthy lifestyle. Regarding to the environmental aspect of McDonald’s, in 1990, McDonald’s has successfully established Global Environmental Commitment. They had plan on how to effectively managing solid waste by reducing the materials used in packaging and production. There were three courses of action regarding to this managing solid waste which were, reused, recycle and reduce. In order to reduce the waste stream, they will adopt new technologies or use alternative materials instead of plastic bags and meanwhile, they will continue their research that is environmentally preferable. On recycle, every of the McDonald’s member are required to reach the maximum use of recycled materials, equipping and operations of the restaurant. Besides, McDonald had spent a minimum of one hundred million dollar per annum buying recycled materials. (McDonalds Global Environmental Commitment, 2010). On the other hand, reused materials had also been implemented in the operation and distribution system of every McDonald’s restaurant. In 2002, a total of four hundred and sixty million US dollar was spent by McDonald’s global supply chains in recycling packaging materials. This had lead to thirty five million pounds of packaging materials around the world had gradually decreased. Furthermore, McDonald has also given good social performances in many prospectuses. For instance, McDonald had participates in EU’s Green lights Programmers in order to use energy-efficient lighting and install it voluntarily. (Pottebaum, J. 2010)

            McDonald’s brought out the first global animal welfare progress report in highlighting major 2002 developments in all zones. McDonald is also one of the industry leaders in animal welfare. (Responsible Purchasing, 2010). Several programs have been implemented such as Global Animal Welfare Guiding Principles, humane animal handling practices and Laying Hen guidelines. Expert chief for animal welfare from McDonald’s company, Dr.Temple Grandin, did onsite audits and training in Latin America, the Far East, and the United States.  Since the audit program was started in 1999, Dr.Grandin had analysed and worked with McDonald’s suppliers in ten countries and all four of them were our global zones. He once said that people should give credits for the improvement of animal welfare that brought by McDonalds.

            Besides than making money or expanding McDonald’s business, on the other hand, McDonald’s had also set up their own charity. Since opening its first house in Pennsylvania in 1974, Ronald McDonald House Charity has helped more than ten million families. (Metzler, B. 2006). Public and corporate who form cause marketing partnership with McDonald’s had provide a huge financial support to The Ronald McDonald Houses. On November 20, 2002, McDonald’s restaurants around the world had established a community that never happened before with fundraiser for children in their communities. There were more than 100 countries in the terms of restaurants participated and boost more than twelve million US dollar for Ronald McDonald House Charities and other children’s causes. This event brought up approximately 200 children’s health organization giving their kind support to the child around the world, aid for orphanages over Eastern Europe, aid for close to 70 children's hospitals worldwide, giving out of nearly 150,000 dictionaries to children in rural areas of China, assist for 16 new Ronald McDonald Houses around the world, and approximately 1300 hearing aids for children in Mexico. Ronald McDonald House Charities was awarded and named one of America’s Top 100 Charities by worth magazine in 2001 and 2002. (Todd, K. 2002; Jacob, J. 2002). On 5 of June 2008, The USGBC (United States Green Building) Council awards LEED Platinum rating to Ronald McDonald House Charities of Austin and Central Texas which is also the first LEED Platinum Ronald McDonald house in the world. (SpryDev 2008)

            Moreover, a healthy lifestyle is always to be McDonald’s number 1 concern. In the past few years till today, McDonald had come up with a variety of healthy menu choices with additional nutrition information and education. McDonald’s also pursue the local needs and preferences of their customer around the world in order to develop new strategies and plans for that. An early result is McDonald’s expand additional choices for Happy Meals. For instance, Fresh fruit packs in the UK such as baby carrots, vegetable nuggets, milk, juice, and low calorie soft drink in Sweden; creamy yogurt-style cheese in Brazil, In Spain, and customer can create their own Happy Meal from a variety of entrees and accompaniment, and many more. Besides, the issue of childhood obesity; which previously had only bubbled below the surface, became a major problem. (Light and Kiddon 2009, 11). It also became a negative aspect of McDonald’s. Meanwhile McDonald had recently launched a new campaign to promote healthy eating and exercise targeting youngster. In this particular campaign, two in a series of Ronald McDonald videos will be shown to kids, showing them kinds of activities that they can intend to enjoy while staying active and energetic. These videos with more than 50 languages will be released to more than 50 countries. Secondly, McDonald’s also serves a range of high quality food where could make customers easily fit into a balanced diet. They provide food exchanges for their popular menu items to assist their customers with meal planning for diabetes and weight control.

            On the other hand, McDonald offers a comprehensive analysis of the organization where it acts impacts upon its stakeholders. McDonald’s U.S. employees at corporate division and region offices may receive benefits including a bonus program, educational assistance, credit union membership and sabbaticals of eight weeks every ten years. (Plunkett, J. 2008). Moreover, being a stakeholders, care will also be well organised by McDonald’s. For example, Health and Protection will be given to the employees and their family members if they could match one of the plans implement by McDonalds and those medical plans will includes annual physical exams for employees and family members as well (up to four hundred dollar per person per annum). Besides, McDonald’s will also provide dental services for employees to consult a dentist. The rest of the benefits will also includes vision supplement, spending accounts, short and long-term disability, employee and dependent life insurance, accidental death and dismemberment insurance, travel and business travel accident insurance.

            Secondly, for the pay system in McDonald’s are depends on their worker’s attitude. In theory, McDonald’s workers can increase their basic pay through good performances. (Royle, T. 2000). Therefore, McDonald’s does implement a program holding in a “pay for performance” philosophy. For instance, if an employee achieves an outstanding performance is that particular month, he or she will receive a greater pay opportunities. Therefore, employees will start to work hard in order to compete with each other and meanwhile, due to their hard work performances, their attitude towards will also attracts customers. Secondly, McDonald’s do sometimes offer their employees to join one of the following savings and money management programs such as Profit Sharing and Savings Plan, Mc$ave, MCDirect Shares, Credit Union, and Financial Planning Services. Hence, employees could take the benefit of all services available from the Corporate America Family Credit Union.

            Nevertheless, McDonalds will also have a corporate social contract for every employee. This is to prevent labour issues. In UK, McDonald’s enables employees from the same family working in the same restaurant can cover each other's shifts without prior notice, giving them flexibility to cope with their busy lifestyles. On the other hand, flexible work opportunities is also allowed, for example, all part time employees are given choices to choose the timing on when will they be available to work and have their shifts confirmed within the time frames, part-time positions in restaurant management and compressed summer hours for office staff so that they can get more from their weekends. The contract practices have helped McDonald’s UK achieve the lowest staff turnover in the UK hospitality industry, a high proportion of female managers, and high levels of employee satisfaction.

In conclusion, it can be seen that McDonald’s social performance which are environment care, animal welfare, Ronald McDonald House Charities and Healthy lifestyle have a profound effect in this world where it takes in bits of consideration and caring for every people. Meanwhile, on the company performance, McDonald’s have taken in care upon its society and stakeholders. Being the leading global food service retailer today, McDonald’s have placed a well known reputation in this world. Its corporate social responsibility has gain peoples respect.

Meanwhile, there will also some recommendation implies on McDonald. It is suggest that several things can still be improve in order to receive more attractions from customers. Sometimes, although McDonald spent years developing new types of cuisine, there is somehow customers would still complain that the food is not hot enough to serve especially hamburgers and french-fries. Secondly, McDonalds seems to emphasize their advertisement and caring targeting more on children instead of adults. McDonald's should find a way to ensure that even adults will feel good and healthy about eating those foods. Thirdly, it can be seen that burgers that contain cheese and its cheese doesn’t seems to melt. Therefore it is shown that the burgers served in McDonalds are not hot enough to melt a single cheese. This could lead to complaints from customers.