Social Responsibility and Social Responsible Consumption of Mcdonalds free essay sample

This assignment will be based on McDonalds and will be focusing on the Corporate Social Responsibility (CSR) will also be heavily forces on the social ethical side of the business McDonalds Corporation is the worlds largest fast food chain, selling primarily hamburgers, chicken, french fries and carbonated drinks; and more recently salads, fruit and carrot sticks. (http://en. wikipedia. org/wiki/McDonalds) The business was founded in 1940 with a restaurant opened by siblings Dick and Mac McDonald. It was their introduction of the Speedee Service System in 1948 that established the principles of the fast-food restaurant. However, the company today dates its founding to the opening of CEO Ray Krocs first franchised restaurant, the companys ninth, in 1955. He opened his first McDonalds in Des Plaines, Illinois in April 1955. As the first and largest international fast food franchise, McDonalds has become a focal point in public debate about rising obesity rates, corporate ethics and consumer responsibility. (http://en. wikipedia. org/wiki/McDonalds) Social responsible consumption of McDonalds Social responsible consumption of products is important to McDonalds and to the long-term success of the business . In an industry first, with other fast food manufacturers, McDonalds have tried to created a more heailther image then before this can be look at by removing there super size meal which course a lot of prombles McDonalds menus offer a variety of safe, high-quality food products that can fit into balanced, active lifestyles. McDonalds typically serve several types of hamburgers, grilled and fried chicken products, and fish and, in many cases, salads, fruits, and additional sandwich options. McDonalds created the Ronald McDonalds House Charity (RMHC) in 1974. The RMHC ‘is working to better the lives of children and their families around the world’ (Ronald McDonald House Charity, nd). The RMHC works ‘by creating, finding and supporting programs that directly improves the health and well being of children’ More than 10 million families around the world have benefited from the Ronald McDonald House Charity (richmondrmhc. homestead. com). social consumption of McDonald is not all jolly as there are many responsible issues which is a big concern to any people and need to be looked at by the company here are some facts from the super size me website McDonalds distributes more toys per year than Toys-R-Us this should be a really concern to them as Toys R Us are in a toy industry and McDonalds give out more toys to there customers this should tell McDonalds something about what kind of marketing methods they are doing. 60 % of all Americans are either o verweight or obese this is figure is very high we know that McDonalds are trying to improve there menu and offering gyms in some of there outlets in the U S. McDonalds represents 43% of total U. S. fast food market McDonalds feeds more than 46 million people a day more than the entire population of Spain (supersizeme. com) What is meant by Corporate Social Responsibility Corporate Social Responsibility (CSR) is achieved when a business adapts all of its practices to ensure that it operates in ways that meet, or exceed, the ethical, legal, commercial and public expectations that society has of business. (www. corporate-responsibility. om) To be considered effective, corporate social responsibility must be an integrated part of day-to-day business, engaging all stakeholders and including strategies to support individual managers to make socially responsible decisions, conform to ethical behaviour and obey the law (www. corporate-responsibility. com) Corporate Social Responsibility (CSR) in McDonalds has increased over the last 15 years, as globalisation has led to increased pressure to meet society’s ethical demands and expectations. This pressure is a result of an increased number of stakeholders who ‘can affect or are affected by, the achievement of the organisations objectives’ (Beauchamp, 2004), as well as the increasing influence and power of the mass media, which is able to pick up on even the smallest issues and represent them globally. As a result, ‘in a technological age, where news spreads fast and everyone is expected to do there part to take care of the world, Corporate Responsibility is a business necessity’ (Allen, 2004). Implementing CSR within an organisation is becoming extremely crucial as ‘businesses need to be seen acting responsibly towards people, planet and profit’ (European Agency for Safety and Health at Work, 2005). At the beginning of 2006 McDonalds created a CSR Blog on the Internet where consumers can go online and see what McDonalds do for CSR and McDonalds CSR Blog also invites the consumers to communicate with them to offer their opinions and make their experiences known with McDonalds. From these comments McDonalds are able to improve and move forward. With comments like these available to McDonalds over the Internet they are able to quickly sort out any problems. Bob Langert (2006), Senior Director for Corporate Social Responsibility at McDonalds stated ‘we want to open our doors to corporate social responsibility (CSR) at McDonald’s – to share what we’re doing and learn what you think. How to improve the buisness. Engaging Ronald McDonald as our physical activity ambassador. In 2003, a new Ronald McDonald shows Get Moving with Ronald McDonald to help provide motivation for starting and maintaining a more physically active lifestyle. Ronald McDonald is now a central figure in the unique fun communications of our global energy balance awareness campaign. ( McDonald. com) Much younger consumers, the so-called generation X and millennium consumers born since 1982, have an equal antagonism to manipulative promotion (Soloman et al. , 2002). In fact, there is some suggestion this generation (Y) expect to be able to tell the business what to do. Contrary to most predictions of consumer behaviour, the more information there is about something wrong with a product, the more this generation will buy it;. This group engage in a mass of two way communications via e mail and mobile phone, so they expect to be able to interact with a company and interrogate a product before purchase (Rach, 2000. ) this effect McDonalds way of business as most of the consumer are people under 30 Ethical issues faced by Mc Donald’s An ethical problem involves a situation that is morally difficult and makes a person question what is the right or wrong thing to do. Ethical problem make individuals think about their obligations, duties or responsibilities. These problems can be highly complex and difficult to resolve. Easier problem involve a right versus wrong answer this type of problems are always effect at McDonald’s and other large organisation there are many problems related to ethical problems in McDonald’s One of the main ethical criticisms consistently faced by McDonald’s over the last 30 years relates to the food offered in its stores. Critics claim that McDonald’s is a major contributing factor to the ever-increasing levels of obesity (Walsh, 2003) in the U. S. and other developed countries. Medical studies show that ‘waistlines are expanding faster in the UK than in any other European country†¦with 1 in 5 adults dangerously overweight’ (Walsh, 2003), while in 2001 it was reported that 300,000 deaths a year in the U. S. are related to obesity compared to 400,000 through cigarette smoking’ (McMans Depression and Bipolar Weekly, 2004). McDonald’s contribution is a result of the unhealthy nature of fast food. For example, a meal of a Big Mac and medium fries would provide you with ‘910 calories, as well as 46g of fat, 13g of which are saturated’ (McDonald’s. om, 2005). Considering the fact that this is half the recommended daily allowance for a female adult, it is clear that McDonald’s does not meet U. S. dietary requirements. Apart from obesity, ‘diabetes, high blood pressure, heart disease and some forms of cancer are related to a diet high in fat, saturated fat, salt and sugar’ (Inside the McLibel tr ial, 1995). The impacts of a McDonald’s diet were clearly shown in Morgan Spurlock’s controversial film ‘Super Size Me’, where he ate nothing but McDonald’s for one month. Although this was an extreme example, the impacts on Spurlock were dramatic. ‘Spurlock gained 25 pounds, raised his cholesterol by 60 points, dropped his libido and turned his liver into pate’ (McMans Depression and Bipolar Weekly, 2004). He also experienced headaches and depression, and actually became addicted to the products. The impact of a McDonald’s diet on children is also a major ethical concern, as an increasing number of children are faced with obesity problems. ‘Every month, 90 percent of the children between 3 and 9 in America visit a McDonalds’ (Schlosser, 2001). McDonald’s has been criticised for exploiting children with advertising. They have traditionally aimed themselves towards children with collectable toys in ‘Happy Meals’, as well as colourful advertising campaigns and promotions in schools. Most criticised is the use of the Ronald McDonald clown character, which has been seen as a ‘cynical exploitation of children to use a clown to drum up business’ (Inside the McLibel trial, 1995). These marketing tactics contribute to the increasing unhealthy diet of many children. Issues on how they really look after the environment and animals Stakeholders in a McDonalds may not only be human because animals are also seen as an important part of society and deserve the same treatment as humans. McDonald’s has been criticised for the way it treats animals before they are killed and turned into fast food. ‘The corporation is the worlds largest promoter of meat based products, the largest user of beef and the second largest user of chicken’ (McSpotlight. org: McDonald’s and Animals, 2005), and therefore is faced with the usual claims aimed at slaughterhouses. It is claimed that ‘chickens were crammed into sheds with less than one square foot of space per bird and no daylight’ (Inside the McLibel trial, 1995). As a result, ‘44% had leg abnormalities and other health problems’ (Inside the McLibel trial, 1995). This treatment was not just reserved for chicken but also other animals involved in McDonald’s fast food products. 40% of piglets were held in indoor breeding units, and half had tails docked for no apparent reason’ (Inside the McLibel trial, 1995). Ethical criticism is also aimed at the methods for killing the animals. 14% of chickens received pre-stun shocks, which caused undue stress, while 1% (1,350 per day) were decapitated before being stunned’ (Inside the McLibel trial, 1995) . On the other hand, McDonald is now becoming more socially/ ethically aware There are many other examples of McDonalds partnership with leaders in this field, in the United Kingdom where McDonalds is supporti ng future of farming and animal welfare projects in partnership with Royal Society for the Prevention of Cruelty to Animals. McDonalds has ushered in a new era of responsibility and accountability for animal welfare. They have helped encourage collaboration and cooperation among industry, non-government organizations, academia, and other stakeholders so that we can work together to make a difference, said Dr. Joy Mench, University of California at Davis, Department of Animal Science, and a member of McDonalds Animal Welfare Council. (McDonald’s Corporation) I am impressed by McDonalds efforts to develop animal welfare standards for processing plants, and I am encouraged by the dialogue and actions taken to establish guidelines. For example, I have seen the tangible esults of the new laying hen guidelines, and they have greatly improved the living conditions of hens. (Dr. Joy Mench) this statement clearly shows that McDonalds are improving their way of business and becoming more aware of the environment. On another environmental issue, McDonalds won praise in July from Greenpeace, which wrote, in an historic deal that has impacts far beyond the golden arches and into the global agricultura l market, McDonalds is now the leading company to halt deforestation for the expansion of Soya farming in the Amazon. McDonalds agreed to stop its role in slashing the forests for Soya, which is fed to the pigs and chickens that end up in its sandwiches and breakfast entrees, after Greenpeace pointed an accusing finger at the company in April. This Cleary is indicating that McDonalds are doing something about the environment while getting prises of Geenpeace this shows that McDonalds have come a long way of cleaning there act up and looking out for the environment issues which affect them while doing business As well as social ethical issues, McDonald’s must also consider environmental ethics, which means treating natural resources not just as good but also as part of the ecological whole. It is important because it affects the image of the company and consumer’s perceptions. For example, ‘a Wall Street Journal poll in 1991 claimed that 53% of people avoided purchasing a product because of environmental concerns about a product or manufacturer’ (Hawken, 2002). The most famous environmental issue is the suggestion that McDonald’s has destroyed hundreds of acres of Brazilian rainforest to make way for large-scale cattle ranching. This not only removes a valuable natural resource, but also has an impact on global warming, as the rainforest is an essential mechanism for the absorption of Carbon Dioxide in the atmosphere. McDonald’s also ‘annually produces over a million tons of packaging used for just a few minutes before being discarded’ (McSpotlight. org: Environment, 2005). Traditionally a number of ozone depleting gasses were used in polystyrene foam packaging. In the 21st century, McDonald’s uses almost all recycled packaging. However, the company still faces criticism due to the amount of waste it produces. ‘Each of McDonald’s US restaurants produces 238 pounds of waste per day and each of its U. S. regional distribution centres disposes of another 900 pounds of waste per day’ (Svoboda and Hart, 1995). This is not only expensive to dispose of, but also difficult when considering that similar quantities of waste are being produced around the world. McDonalds statement: We cook all our products in 100% rapeseed oil and since 1998 have reduced the trans fatty acid levels by over 50%. We continue to trial new oils that offer us further reductions. The Food and Drink Federation said: The food industry is fully committed to reducing the level of trans fats to as low as is technically possible and has been actively reducing these levels. Internal ethical issues in McDonald’s McDonald’s also experiences internal ethical issues related to the working conditions and treatment of e mployees. ‘McDonald’s employs over 1 and a half million people worldwide, over half of them under 21 years old’ (McSpotlight. org: McDonald’s and Employment). McDonald’s has adopted ‘age differentials between adult and younger workers, meaning that they pay most of their employees less than the normal adult minimum wage’ (Transport and General Workers Union, 2004). For example, McDonald’s pays some 16-year olds as little as $6. 80 an hour. McDonald’s employees also experience poor working conditions with discrimination, illegal working hours, and poor safety conditions. There is little that can be done about this due to the absence of trade unions, within McDonald’s, to represent staff. If Milton Freeman’s theory of stakeholders is adopted, the needs and expectations of staff are just as important as those of customers. The range of ethical criticisms level at McDonald’s throughout the world has been well published. However, many of these issues were first raised in the 1970’s before tighter regulation was imposed and unethical behaviour became a burning topic. After 30 years of criticism, it is important to look at what measures McDonald’s has taken to improve its ethical conduct and how far this has been successful. McDonald’s claims that ‘being a good citizen has been inherent in the company since its inception’ (Schlosser, 2001). Ray Kroc believed McDonald’s had an ‘obligation to give back to the community that gives so much to us’. This was rooted in his founding principles of Quality, Service, Cleanliness and Value. Since 1955, McDonald’s has continually made statements about its conduct to try and reassure shareholders and stakeholders. However, nothing was said or published about what attempts were actually being made to ‘do the right thing’. This finally changed in 2002 with the release of McDonald’s first Social Responsibility Report. Problems course in the 2002 report The content of the report was criticised because it focused on issues and areas where McDonald’s had been successful, but did not mention well-publicised issues, such as obesity. Similarly, it neglected to mention a number of the company’s major environmental impacts. For example, the report ‘talked about water use at the outlets, but failed to note that every quarter-pounder requires 600 gallons of water’ (Schlosser, 2001). This distinct lack of transparency enabled McDonald’s to cover up any bad issues and only show what they wanted the public to see. The key problem with the 2002 Responsibility Report was that ‘due to its decentralised nature, McDonald’s was unable to provide any of the data that is looked for as core information in their report’ (Wood, 2002). In its report, McDonald’s stated how much money it had provided for social improvements, but no figures on what impact these improvements had. Similarly, there was very little information related to the measurement of environmental impacts and improvements. This meant that the report was written as a narrative, rather than a social report. The effectiveness of the report was also reduced by the fact that there was ‘no comparative data on past and present performance’ (Strategic Direction, 2002). The final nail in the coffin for the report was the fact that ‘there was no independent verification’ (Strategic Direction, 2002), which meant that stakeholders could not even have a guarantee of the accuracy of the report. These negative factors meant that the first McDonalds Social Responsibility Report was ‘an impressive statement of intent, but it recognised that the company was not yet ready to report progress’ (Wood, 2002). The report says that ‘being responsible is one of our greatest competitive advantages’, even though the issues it tackles are growing ever more complex’ (Allen, 2004). The 2002 report made little mention of McDonald’s food, and failed to recognise the ethical concerns associated with it What McDonald’s is doing to improve their image The company highlighted efforts to offer healthier options, including salads on its menu, and revealed how they had brought in a full time nutritionist to alter the menu. Possibly the most poignant move was to phase out the ‘Super Size option’ in all restaurants. McDonald’s have also ‘added new options to Happy Meals for children, so fries can be substituted for healthy alternatives like apple slices’ (Allen, 2004), and offers milk, fresh orange and water instead of coke. The section on the environment is also more substantial, with a variety of figures on packaging and waste. For example, ‘McDonald’s achieved a 3. 2% reduction in packaging during 2003’ (McDonalds Corporate Responsibility Report, 2004). This is combined with a section, which shows McDonald’s commitment to improving the environmental performance of suppliers. This includes a statement that ‘McDonald’s will not purchase beef from rainforests or recently deforested rainforest land’ (McDonalds Corporate Responsibility Report, 2004), acknowledging one of the specific ethical criticisms aimed at McDonald’s. McDonald’s also shows its commitment to reducing animal cruelty from suppliers by increasing supplier accountability and ‘conducting nearly 500 audits at beef, pork and chicken processing facilities around the world’ (McDonalds Corporate Responsibility Report, 2004). The content of this report shows that the company is beginning to acknowledge and account for the unethical stories recounted by critics There is still an absence of evidence to prove to strong opposition that change is really occurring. This is probably a result of the fact that McDonald’s does not have an ethics department or ethics officer. It simply has codes of conduct, which are produced at the top level by directors. The result of this is that because the directors are not experts in ethical conduct, many of the ethical issues are simply covered over by well publicised, but unsuccessful schemes, and many of the needs of stakeholders are not met. In 2004 Corporate Responsibility Report shows that the menu has been enhanced with healthy options, which reinforces McDonald’s public aim to increase the healthiness of its customers. The company has increased recycling and reduced waste in stores across the world, while attempts have been made to improve the standards of its suppliers Conclusion and recommendations McDonald’s achievement is set to continue into the future. This has been sustained despite facing constant pressure from critics about its operating practices. As a result, it seems very unlikely that McDonald’s methods of publicising ethical attempts will change, especially considering the money that would be required. If there was a shift towards full corporate social responsibility, there is a need for an ethical officer and ethics department, comprised of experts who can subjectively analyse the performance of the company and set accurate objectives.