This report is focused on the MC Donald’s CSR report in which all the ethical aspects which MC Donald’s has followed in their work culture are being analyzed with their mission and objectives. It is also focusing on the CSR activities in which MC Donald’s has truly given their contribution which they have mentioned in their business operations. It is also focusing on the business operation around the stakeholders of this organization like supplier, community, employees as well as society in which it is functioning (Blomback and Wigren, 2009). This report is also focusing on the importance of ethical which MC Donald’s is practicing from earlier business time to new implementations. This report also includes how strict is the management of the McDonald’s regarding the laws of product quality because this organization believes that it is the only trust which attracts a potential customer towards the organization and then converts them into a loyal customer by forming a strong positive bond (McDonald’s, 2017). This report also includes the belief on which MC Donald’s was founded by Ray Kroc that community is an important part of our business operation and if we are getting so much from the community, then it is our duty to return back something to the community.
As per the report of 2015, it was found that MC Donald’s were operating their ethical practices around four elements. First one is sourcing, the second one is people, the third one is community and the fourth one is the planet. The company believes that eating is one of the most important parts of human life and things related to it must be safe and of high quality. This is the first priority of the company to provide guaranty to the potential customers that the products which belong to this company is trustable and hence the company has provided quality department high power to ensure that the product which is being manufactured and delivered by this company is safe from human point of view (McDonald’s, 2015). This company applies very strict standards regarding the quality and is not ready to compromise in any portion of the standard because it is connected to health safety of the community in which it is operating. MC Donald’s believe that it is not only the business operation for them but it is also the desire and passion of the company to offer safety and security. The company believes that a food company must include ethics in their complete process right from the transport of raw material till the delivery of the product to the customer (Trienekens and Zuurbier, 2008). This company has not limited their ethical aspect only in product manufacturing and delivering but has also maintained their ethical practices in sanitation department also, they have to implement hygiene control system with standard operating procedures in their all restaurants all over the world and are bound to offer a hygienic environment to the customers. They also pay great attention towards the systems like washing hands, equipment sterilization, checking temperature of the cooking, records related to expiring dates of materials (McDonald’s, 2016). Sanitation test is also carried out externally in order to ensure that no unethical practices are going on in this segment.
MC Donald’s believes that for any organization it is very important to develop their people in order to achieve their growth because any organization does not run on their own, it needs people to run. So, if the people get developed, it will automatically help the organization to achieve their objectives. Here MC Donald’s implements a development system which includes subparts like expanding diversity, employee performance system, career development, self-realization forums (McDonald’s, 2008). In expanding diversity, the company is governing such an environment which is full of cooperation and no discrimination is entertained on the bases of age, gender, race, educational background. The company believed that it is the time to offer power in the hands of women by offering more job opportunities to the women in the company along with permanent posts (Lee and Shin, 2010). The management of MC Donald’s had put a lot of efforts to change their mindset of male dominating work culture towards work for all culture.
MC Donald’s follows a completely fear policy of employee performance and on the base of this standard they have connects the further development of the employees like upgrading the post. There is no space for inner-group and outer-group, all employees are treated equally and so are their work performances (Hooper & Martin, 2008). Earlier it was believed that every organization consists of inner and outer group and members of the inner group are believed to be close to their leaders as compared to members of the outer group and hence enjoy more facilities in terms of decision making, promotion, and hike in salary and position. But such practice is prohibited in this organization.
MC Donald’s is offering various opportunities to their employees to develop their self by initiating challenging tasks which in turn offer various doors of development to these employees by helping in learning necessary competency which is very essential in this business world (Smith, Gonin and Besharov, 2013). In this company, employees are motivated to put their effort not for the personal gain but for the company objective as well as for the community in which the company is operating. This company always motivates their employees to choose their target which fulfills the ethical need of the company and offers them self-realization.
At present, MC Donald’s has implemented a lot of changes in their business behavior and has allied it with ethical commitments. They have brought some alteration in their core values as compared to previous years with some portions unchanged like placing customers at the top of core values, committed towards people and giving back to society. But at present, they have brought abandonment to their standards code of conducts (Wigley, 2008). MC Donald’s believes that the code of conducts which are being followed in this company must be displayed to the public in order to form a trustable business environment. Hence, this company directly display all the standards of business ethics on their company websites because in past there were some ethical issues related to the MC Donald’s related to child work and labor exploitation and as a result of this-this bad image of company was spread all over the global platform which has impacted their sales (Lee, Park and Lee, 2013). The company has also included an audit committee or the board of directors which will regulate all the statements of executive officer on the base of business ethics periodically.
MC Donald’s have introduced high living ethical behavior standards in their business operation and this happens under the direct supervision of the Directors in order to understand whether our ethical behavior are matching with the international ethical standards so that employee can live high standards living (Roy, Nei, Orikasa, Xu, Okadome, Nakamura and Shiina, 2009). To take care of this ethical compliance, the company has created a post of a compliance officer who is responsible for a meeting of MC Donald’s policies with the business ethics. The company also promotes additional responsibilities to the employees which are at supervisor post because these are the people on which company can trust and have shares traits of motivators. Hence, the company believes that these supervisor people have the additional duty of maintaining an ethical work environment in the company along with mentoring the employees (Caldwell, 2011). It is their ethical duty to ensure that the person who is reporting to them is well aware of all the ethical standards related to the business committee of the company and just complete their training related to all the business ethics that is being followed in the company. It is their ethical responsibility to make communicate properly all the ethical policies related to the company to their employee in such a manner that they will get easily adapted to these standards by understanding the need of these ethical policies. Company believes that supervisor must motivate their employees to have a two way conversation so that business ethics related question can be raised in order to have a deep understanding of these ethics and it also duty of the supervisor to have a regular follow up on all issues which may be of unethical nature happing in their business operations (Caldwell, Floyd, Atkins and Holzgrefe, 2012).
After analyzing past issues which has impacted the image of the MC Donald’s on the global platform. This company has introduced personal responsibility of their action in their business operation and according to this standard, the company will be responsible for any kind of impact which has been created by their actions in the market and is personally liable to actions (Johnson and Kennedy, 2010). In any kind of business, there are up and downs, success does not remain in the continuous process but a truthful company is that which is willing to accept all their faults and are committed to taking the necessary actions to reposition their image in the market. As per this standard, if any employee which be found out practicing any kind of unethical action related to people, society or image of the company, strict disciplinary actions will be taken on that employee which includes a penalty or even termination from the job (Fisher, 2008).
At present MC Donald’s is working on business honesty track in which company is raising their voice in any kind of unethical practices happening in the business world by asking question even if they can impact on the financial aspect of the company which will display companies commitment in the business market (Payan, Reardon and McCorkle, 2010). According to this standard, it is the ethical duty of each employee of this company to report any kind of violations of ethical practices in the company as well surrounding around the company. A standard operating procedure has to be followed in which high-level violation of ethics should be reported to the compliance officers and if the matter is not that serious it must be reported to the respected supervisor or HR department of the company (Stevenson and Wolfers, 2011).
For many organizations there are mainly two forms of business ethics one is descriptive which includes the way in which a person makes their decision on understanding right thing to do and other is normative which is related to the principles that involve judgment and clams. But when it comes to the dimensions of business ethics there is mainly four types of dimensions of workplace issue, customer relationships, negotiation ethics, and corporate social responsibility.
MC Donald’s focus on the development of an individual working in their company on the base of ethical business dimension and ensure that growth of individual will have a positive impact on the development of the organization.
MC Donald’s ensure the safe working environment for the employee of the company because they believe that if we take care about the safety of the customer, it also becomes our responsibility of this company to offer a work environment which is free from risk and fear. Risk and fear are the two main factors which will actually not only impacts the performance of an individual regarding their personal as well as professional life but also will impact the productivity of this company (Adger et al., 2009). It is the duty of the supervisor to solve any kind of conflict which occurs within the company because it will create an environment in which any individual will sense that company is no paying any attention towards their concerns and it is possible that they may leave the company. It is the work environment of the McDonald`s which helps an individual trust on other individual and offer support to each other in case of need.
McDonald`s believes that an individual joins the company with the hope of career growth and it is the company which offers a required platform for growth to these individuals. Here, this company provides growth opportunities to these individuals by giving them a challenging task to maintain customer relationship which forms the base of growth for any organization (McDonald and Keys, 2008). McDonald`s permits these individuals to resolve the issues related to the customers by their own so that they can learn from their mistake and later can use their this experience to handle further issues which are very important for any individual growth.
McDonald`s motivates individual to follow ethics in their negotiation process so that it a win-win environment can be created for both the parties and one cannot exploit other on the base of even being powerless and will help in developing care for humanity in the values of the individual which they can implement not only in their professional life but also ion their personal life (Wals, 2010).
McDonald`s believes that every individual which are part of their direct process must be taken care in the form of giving back what they have provided to the company through their years of hard work. McDonald`s implements various training programs which ensure the sustainability of an individual in this business world even if they will leave the company. This company ensures that individual must get proper medical services for their family, education scholarship for their children study and in case of financial crises they are being offered loans on very fewer interest rates.
After facing a lot of issues related to the company image, McDonald`s has truly focused their business operation towards the welfare of the society in which they are working.
As the individual is the part of society, by offering health work environment McDonald`s ensures the growth of the individual which in turn safeguard the health of the society. This company believed that society and individual share influence connection with each other and if anything bad happens with the individual which impact the health of the society (Reisch, 2013).
McDonald`s believes that health customer relation will help in creating a relationship building environment which is full of trust and confidence which is very essential for the development of society. It will motivate the members of the society to trust each other in the environment of trade
Through negotiation ethics McDonald`s ensures implementation of ethics even on negotiation tables which will help in avoiding exploiting of one party from other party and help in forming happy deal for both powerless and powerful by removing power regarding positional or post base because in deal one party may be on the low side and another party enjoys being higher side of the deal (Holmqvist, 2009). This will help in creating an ethical business behavior in the community in order to prosper the business on the community level.
McDonald`s through their present business operation has ensured the effective utilization of energy resources, avoid water waste and contribute some percentage of their profit in the education and health of the needed population of the society which will help in offering high living standards to every single individual of the society and safeguarding the growth.
McDonald`s believe that every region of the world is different so as is their requirement and hence, the company cannot follow the same CSR system for every region in which they are present. It this system the company mainly considers the macro business environment of the region and prepares their CSR system accordingly. In the USA, CSR system of McDonald`s mainly focuses on the energy saving with the help of business operational. Here the company carry a yearly base energy survey and motivates their management to concentrate their work on these aspects which helps them in reducing the cost of utility associated to their business (Kraak, Swinburn, Lawrence and Harrison, 2011). Here they also focus on the paperless business operation in order to save the tree from getting cut and also motivates their suppliers to implement this strategy in their business operation. In Japan, McDonald`s CSR system focus mainly focus on the charitable activities in the welfare of the society by offering financial support to sports games like baseball and other sports which promotes healthy life of the Japanese citizens. They also focus on providing free education classes to the society in order to make them aware of healthy eating habits and information’s about the materials used in the manufacturing of the products.
While in India, McDonald`s CSR system focus on the environmental prospect in which they implement procedure like the recycling of waste products, offer training programs for the health and physical safety of the employees during their employment in this company. As India is known as one joint community so, here they sponsor some activities like a health marathon in order to promote engagement between their employees, community, supplier and other partners of the community (Matten and Moon, 2008). In some case, they form the partnership with some social community in order to promote that McDonald`s is always there for their help.
Hence, McDonald`s has set up different CSR system to meet the different requirement of the nation or particular region due to nations with different economic stability, GDP and climate controls. For the growth of any nations it is very important to develop their individual first, then the community in which this individual lives. This will ensure the stability of the nation will help in creating a respectable image of McDonald`s on Global platform in this business world.
Conclusion
For years business is struggling from many issues which have actually changed the image of the business in the eyes of the community. Instead of considering them a resource of opportunity providers, many societies actually perceive business as a place of people which exploits nation resources, manpower, and technology for their personal gain. This issue was analyzed by McDonald`s and hence form their business operation around the benefits of the society by offering high quality and safe products to the society. Strictly follows the ethical business behavior in all the parts of their business and centric their operation related to the welfare of their employees, society in which they are functioning in the form of CSR program activities on Global level so that a better international business world can be formed which strictly obey the ethical process in their business operations both in domestic as well as international level.
References
Adger, W.N., Dessai, S., Goulden, M., Hulme, M., Lorenzoni, I., Nelson, D.R., Naess, L.O., Wolf, J. and Wreford, A. (2009) Are there social limits to adaptation to climate change?. Climatic change, 93(3-4), pp.335-354.
Blombäck, A. and Wigren, C. (2009) Challenging the importance of size as determinant for CSR activities. Management of Environmental Quality: An International Journal, 20(3), pp.255-270.
Caldwell, C. (2011) Duties owed to organizational citizens–Ethical insights for today’s leader. Journal of business ethics, 102(3), pp.343-356.
Caldwell, C., Floyd, L.A., Atkins, R. and Holzgrefe, R. (2012) Ethical duties of organizational citizens: Obligations owed by highly committed employees. Journal of business ethics, 110(3), pp.285-299.
Fisher, M.A. (2008) Protecting confidentiality rights: The need for an ethical practice model. American Psychologist, 63(1), p.1.
Holmqvist, M. (2009) Corporate social responsibility as corporate social control: The case of work-site health promotion. Scandinavian Journal of Management, 25(1), pp.68-72.
Hooper, D. T., & Martin, R. (2008). Beyond personal leader–member exchange (LMX) quality: The effects of perceived LMX variability on employee reactions. The Leadership Quarterly, 19(1), 20-30.
Johnson, W.B. and Kennedy, C.H. (2010) Preparing psychologists for high-risk jobs: Key ethical considerations for military clinical supervisors. Professional Psychology: Research and Practice, 41(4), p.298.
Kraak, V.I., Swinburn, B., Lawrence, M. and Harrison, P. (2011) The accountability of public-private partnerships with food, beverage and quick-serve restaurant companies to address global hunger and the double burden of malnutrition. United Nations System Standing Committee on Nutrition: News, 39, pp.11-24.
Lee, E.M., Park, S.Y. and Lee, H.J. (2013) Employee perception of CSR activities: Its antecedents and consequences. Journal of business research, 66(10), pp.1716-1724.
Lee, K.H. and Shin, D. (2010) Consumers’ responses to CSR activities: The linkage between increased awareness and purchase intention. Public Relations Review, 36(2), pp.193-195.
Matten, D. and Moon, J. (2008) “Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of management Review, 33(2), pp.404-424.
McDonald, K.E. and Keys, C.B. (2008) How the powerful decide: Access to research participation by those at the margins. American journal of community psychology, 42(1-2), p.79.
McDonalds. (2008) Standards of Business Conduct [online]. Available from:https://www.mcdonalds.com/dam/AboutMcDonalds/Investors/9497_SBC_McD_US_interactive_final_112408.pdf [Accessed 21/12/2018]
McDonalds.(2015) McDonald’s CSR report 2016 [online].Available from:https://www.mcdonalds.co.jp/company/csr/pdf/MCD_CSR2015/[Accessed 21/12/2018]
McDonalds.(2016) MCDonald’s CSR report 2016 [online].Available from:https://www.mcdonalds.co.jp/content/dam/web/mcdonalds/company/csr/images/CSR2016_e.pdf [Accessed 21/12/2018]
McDonalds.(2017) MCDonald’s CSR report 2017 [online].Available from:https://www.mcdonalds.co.jp/content/dam/web/mcdonalds/company/csr/images/CSR2017_e.pdf [Accessed 21/12/2018]
Payan, J., Reardon, J. and McCorkle, D.E. (2010) The effect of culture on the academic honesty of marketing and business students. Journal of Marketing Education, 32(3), pp.275-291.
Reisch, M. (2013) Social work education and the neo-liberal challenge: The US response to increasing global inequality. Social Work Education, 32(6), pp.715-733.
Roy, P., Nei, D., Orikasa, T., Xu, Q., Okadome, H., Nakamura, N. and Shiina, T. (2009) A review of life cycle assessment (LCA) on some food products. Journal of food engineering, 90(1), pp.1-10.
Smith, W.K., Gonin, M. and Besharov, M.L. (2013) Managing social-business tensions: A review and research agenda for social enterprise. Business Ethics Quarterly, 23(3), pp.407-442.
Stevenson, B. and Wolfers, J. (2011) Trust in public institutions over the business cycle. American Economic Review, 101(3), pp.281-87.
Trienekens, J. and Zuurbier, P. (2008) Quality and safety standards in the food industry, developments and challenges. International Journal of Production Economics, 113(1), pp.107-122.
Wals, A.E. (2010) Between knowing what is right and knowing that is it wrong to tell others what is right: on relativism, uncertainty and democracy in environmental and sustainability education. Environmental Education Research, 16(1), pp.143-151.
Wigley, S. (2008). Gauging consumers’ responses to CSR activities: Does increased awareness make cents? Public Relations Review, 34(3), 306-308.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download