McDonald’s (USA) – Analyses of CSR and Business Ethics.

Juraj Bukovcak Ana Liza Maglalang

Jina WooRyan LaxamanaApurva Tupdale

OUTLINE• Introduction • Theory• Analyzing the Case

- Social Effect

- Environmental Effect

- Economical Effect • Conclusion • Recommendation

Introduction The History and Development of

McDonald’s. The founder, Ray Kroc. The Slogan, “In business for yourself, but

not by yourself.” What is Corporate Social Responsibility?

Source: About McDonalds (online), Corporate Social Responsibility (online)

Theory

environmental

Source: The three spheres of sustainability

Social Effects Health and Food Issues. Toy Banned in Kid’s Meal. Labor Relations.

Source: Happy meals to be less happy, Graziadio Business Review, McDonald’s: A good image with bad ethics, I smell a McRat.

Environmental Effects 28.8 billion articles of trash in a year. 10 years long McLibel trial. Styrofoam glass. Ecological chain.

Source: CSR Report 2008 highlights, McDonalds: Environmental McNasty

Economical Effects

2005 2006 2007 2008 2009 20100

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Net Profit in millions USD

Source: Annual Report 2010.

Economical EffectsPOSITIVE: Stimulates and highly contributes to the US economy. Paid 1 127 million USD in federal income tax in 2010. Provides and creates employment. Biggest buyer of USA beef. Biggest buyer of potatoes in USA.

Source: Meats - We answer your questions about our beef, chicken, pork and fish

Economical EffectsNEGATIVE:

– McD has high bargaining power.

– Results in ethical issues such as:

• Use of pesticides on potatoes.

• Unethical animal treatment .• Minimum wage for majority of restaurant floor staff.

Source: Meats - We answer your questions about our beef, chicken, pork and fish, McDonald's Aims for a Low-Pesticide Potato for Its French Fries

Conclusion Paying minimum wage. Responding more to consumer demands. Cultivating a “Green Image” Reclaiming positive image. World without fast food.

Recommendation Work hard to resolve issues. Mend relationships with external publics. Continuing market strategy for children’s choice of food

with nutritional value. Continue Recycling and Litter Patrols.

Question And Answer

References• 2012. [ONLINE] Available at:

http://www.neumann.edu/academics/divisions/business/journal/review_08/Gibison.pdf. [Accessed 25 February 2012]

• About McDonalds. 2011. McDonalds History. [ONLINE] Available at:http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html. [Accessed 27 February 12].

• Andrew J Rivers, (2012), Thank You [ONLINE]. Available at: http://andrewjrivers.com/thank-you-for-choosing-mcdonalds/ [Accessed 27 February 12].

• AxXiom, (2010), The three spheres of sustainability [ONLINE]. Available at:http://axiomamuse.wordpress.com/2010/12/30/edmond-info-for-citizens-planning-to-survive-sustainability/[Accessed 26 February 12].

• Happy Meals To Be Less Happy. 2012. McDonald’s Happy Meals to be less happy. [ONLINE] Available at:http://blog.imperfectparent.com/2010/11/03/mcdonalds-happy-meals-to-be-less-happy/. [Accessed 24 February 2012].

• I Smell a McRat - Page 1 - Dining - Dallas - Dallas Observer. 2012. I Smell a McRat - Page 1 - Dining - Dallas - Dallas Observer. [ONLINE] Available at: http://www.dallasobserver.com/2006-11-23/restaurants/i-smell-a-mcrat/. [Accessed 25 February 2012].

• Kroc, R. [unknown]. The Ray Kroc Story : : McDonalds.com [Online] Available at: http://www.mcdonalds.com/us/en/our_story/our_history/the_ray_kroc_story.html [Accessed on 26 February 2012]

References:• Leung, G, 2008. McDonald's: Environmental McNasty?. Exduco, [Online]. 11, 11. Available at:http://

www.exduco.net/news.php?id=2189 [Accessed 26 February 2012].• McDonald’s, 2010. 2010 Annual report, Oak Brook: McDonald’s• McDonald’s, 2012. Meats - We answer your questions about our beef, chicken, pork and fish. [ONLINE]

Available at: http://www.mcdonalds.com/us/en/food/food_quality/see_what_we_are_made_of/your_questions_answered/meats.html [Accessed 25 February 2012].

• McDonalds Corporation (2008). Worldwide Corporate Sustainability Report 2008 highlights.• Obesity, Social Responsibility, and Economic Value - Graziadio Business Review. Graziadio School of

Business and Management. Pepperdine University. 2012. [ONLINE] Available at: http://gbr.pepperdine.edu/2010/08/obesity-social-responsibility-and-economic-value/ [Accessed 24 February 2012].

• The Daily Green, 2009.. McDonald's Aims for a Low-Pesticide Potato for Its French Fries [ONLINE] Available at: http://www.thedailygreen.com/environmental-news/latest/mcdonalds-pesticide-french-fries-47040702 [Accessed 25 February 2012].

• Tutor2u [unknown]. Corporate Social Responsibility [Online]. Available at: http://tutor2u.net/business/strategy/corporate-social-responsibility-introduction.html [Accessed on 26 February 2012]