mcdonalds csr essay

McDonalds Company Corporate Social Responsibility Essay

Competition is an integral part of any firm’s functioning; the choice of the means, strategies, and tools to enhance the firm’s competitive advantage is often the key to understanding the roots to its success or failure, as well as the issues connected with its competitive behavior.

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Every business owner wants to be successful, and wants to receive the highest revenue possible. Nevertheless, there are always certain limitations, requirements, and factors that produce a complex influence on the firm’s functioning and predetermine its profitability.

Business stakeholders should always keep in mind that the firm cannot function in an isolated way; the strategic success of any company depends first of all on the way it attracts customers. One of the effective tools to improve communication with customers, to raise the corporate image and reputations, and to preserve a positive social image, is to get actively involved in the corporate social responsibility (CSR) issues.

They are nowadays recognized as one of the dominant factors affecting the company performance; CSR has become particularly important under the conditions of the modern economic crisis when large corporations cooperate with worldwide NGOs and governmental authorities in order to help states overcome the problems of unemployment, hazards to health, and inequality of people (Royle 2005, p. 42).

The majority of large and successful corporations pose corporate social responsibility as one of their top priorities in business operations; it is evident that this way they manage to cater for their customers and to create the constant, stale, and reciprocal relationships with their clients.

In case corporate social responsibility standards are kept to, there is always much more customer confidence loyalty. As in case with McDonalds that is the subject of the present paper, the mission statement of the company clearly states that the main task of the company is to create unique and unforgettable experiences for their customers (McDonald’s Corporate Responsibility – Values in Practice).

The present mission statement is clearly customer-focused, which will surely create a positive feedback from customers feeling that they are valued.

It is true that the core assumption lying in the basis of the Porter’s model is that the industry structure produces a strong and inevitable influence on the firm’s performance.

The five forces outlined by Michael Porter include the threat for businesses because of the entry of new market participants, the intensity of rivalry firms experience inside the market segment, the pressure from product substitutes or very similar products of rivals, the bargaining power of buyers and suppliers (Ormanidhi & Stringa 2008, p. 57).

Therefore, engagement in CSR activities falls within the framework of ‘intensity of rivalry’ – all fast food leaders in the field have strong positions, and they can easily survive even under the conditions of fierce competition.

McDonalds is the $40 billion company that employed about 1.6 million workers worldwide in 2005, and reported serving 46 million of customer a day (Royle 2005, p. 45). McDonalds has been involved in the corporate social responsibility activities for a long time, since its administration realized the potential for the corporation in the socially responsible approach.

Even upon a glance at their CSR philosophy, one can assume that McDonalds provides 10% of Americans with their first job, and has become the number one job training center in the USA, which creates a highly positive reputation and image for the company and improves its position regarding its competitors (Royle 2005, p. 45).

There is a great number of corporate social responsibility activities in which McDonalds is currently involved; upon viewing its social responsibility page at the official McDonalds website, one can see that there are the following CSR activities McDonalds pursues:

• Proper care about nutrition and well-being of customer
• Expanding the food menu for children with proper attention paid to their unique needs
• Education and information provision about useful nutrition
• Implementation of the forestry policy
• Popularizing environmental considerations on product packaging
• Provision of financial and volunteer support for Ronald McDonald House Charities (RMHC)
• Proliferation of volunteer activities through an online management tool
• Publicizing all production and transportation processes through the “from Farm to Front Counter” program (McDonalds Corporation Worldwide Corporate Responsibility 2010 Report 2010, pp. 6-10).

It is not only a strong focus on the customer satisfaction but also considerations of profitability that make the CSR activities of McDonalds effective. There is a feasible contribution that McDonalds makes to the economies of the countries in which its major markets operate, such as the USA; for example, the expenditures for philanthropic activities in 2006 constituted $13.6 million, while the 2009 figure equals $19 million.

The McDonalds Corporation paid $493 million of social taxes in 2006, and the figure rose to $568 million in 2009 (McDonalds Corporation Worldwide Corporate Responsibility 2010 Report 2010, p. 10). However, at the same time the corporation experiences substantial gains deriving from the introduction of CSR initiatives.

For instance, the electricity consumption rates have decreased considerably to the level of 1.68 9 kWh/TC, 100% of meat-producing plants go through thorough certification and analysis, and more than 90% of employees receive their professional certification in the McDonalds-owned Hamburger Universities (McDonalds Corporation Worldwide Corporate Responsibility 2010 Report 2010, pp. 7-10).

The popularity of CSR activities has been realized by all leaders in the fast food market, which is proven by the active engagement in such actions by other US leaders in the fast food industry such as Burger King, KFC, and Pizza Hut (Royle 2005, p. 45).

The present observation supports the claims of Ormanidhi and Stringa (2008) about the applicability of the Porter’s Five Forces model to the assessment of CSR activities as well, since they contain the element of competition for the customer loyalty as well.

The deep involvement in community work, volunteer work, and other types of CSR activities called philanthropic activity by the company are first of all driven by the effort to reduce the negative impact of such Porter’s force as ‘pressure from substitutes’. There is a clear indication on the emphasis put by the company administration on authenticity of their products and services.

Even their mission statement claims about the creation of unique customer experiences for each single client coming to a McDonald’s restaurant. In addition, the business objectives published at the official side of McDonalds indicate the wish to take care about customers’ health, and to place their customers and commitment to them to the core of their corporate values.

Obviously, it is a clearly beneficial competitive strategy, since the principle of ‘stakeholder democracy’ is fully retained at each level of the corporation’s functioning (Royle 2005, p. 42).

Another popular CSR activity that McDonalds has implemented only recently is the online discussion blog “Open for Discussion” initiated by the company in order to engage in closer and more active communication with customers and stakeholders on health and environmental issues (Fleck, Fieseler, & Meckel 2009, p. 1).

It is an experimental form of communication between the complex body of an organization and its stakeholders that proved highly successful and beneficial in terms of ensuring the implementation of corporate business objectives, tracking customer satisfaction, and monitoring the feedback received from customers as well.

The present feature of the McDonalds CSR activities is also directed at reduction of the ‘pressure of substitutes’ factor from the Porter’s five forces model of competition. There is a clear advantage in communication tools that McDonalds employs, and the CSR activities it undertakes provide the corporation with a confident competitive advantage, and customer loyalty in the industry with very easy entry conditions.

Arriving at a conclusion in the discussion of McDonalds CSR activities ensuring its sound competitiveness in the market of fast food, one should assume that the company has chosen the correct focus of its CSR initiatives, and manages to secure its leading place in the global fast food production and service.

The competitive business strategy of the company is highly adjusted to the current needs of all stakeholders, including investors, shareholders, customers, and international controlling institutions. The business strategy of McDonalds is focused on environmental protection, care about health and well-being of clients, education for staff, and adjustment to customer needs.

The company also ensures transparency of its processes (e.g., through the “From Farm to Front Counter” manual). In the industry offering more or less standardized and comparatively cheap products, the present strategy wins a leading role, positive reputation, and beneficial social image for McDonalds, ensuring its profitability and diminished impact of Porter’s five forces of competition.

Fleck, M, Fieseler, C, & Meckel, M 2009, ‘Micro-Dialogues in Cyberspace – McDonalds Blogging Efforts in Communicating Corporate Social Responsibility online. The 59th Annual Conference of the International Communication Association , Chicago, IL.

McDonald’s Corporate Responsibility – Values in Practice 2011, McDonalds Official Site . Web.

McDonald’s Corporation Worldwide Corporate Social Responsibility 2010 Report 2010 . Web.

Ormanidhi, O, & Stringa, O 2008, ‘Porter’s Model of Generic Competitive Strategies: An insightful and convenient approach to firms’ analysis’, Business Economics , July 2008, pp. 55-64.

Royle, T 2005, ‘Realism or idealism? Corporate social responsibility and the employee stakeholder in the global fast-food industry’, Business Ethics: a European Review , vol. 14, no. 1, pp. 42-55.

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Corporate Social Responsibility for McDonalds

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• CSRwire (2018) ‘CSR News’ http://www.csrwire.com/press_releases/40864-McDonald-s-Becomes-the-First-Restaurant-Company-to-Set-Approved-Science-Based-Target-to-Reduce-Greenhouse-Gas-Emissions (Accessed on 12/12/2018)
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• Baines. P (2016) ‘Philanthropy vs. Corporate social responsibility’ https://www.theceomagazine.com/business/philanthropy/philanthropy-vs-corporate-social-responsibility/ (Accessed on 13/12/2018)
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Corporate Social Responsibility of McDonalds

Posted by Matthew Harvey on Jul-19-2022

At EssayPandas , we help MBA and EMBA students finish their corporate-level case study projects. For example, Corporate Social Responsibility or CSR Analysis of McDonalds mainly relates to the subject of Business, further touching upon sub-topics like organizational development, value proposition, corporate governance, economic development, ethics, leadership, and social responsibility.

Corporate Social Responsibility or CSR Analysis of McDonalds helps ascertain the company's responsibility towards the three P's, i.e., Profit, People, and Planet. This CSR Analysis will help the managers at McDonalds figure out their social responsibilities and run their business operations following the global business norms. Here below is a quick rundown of the CSR case solution. Contact us for further help in custom CSR Analysis.

1. What is Cooperative Social Responsibility 

Carroll’s CSR pyramid explains why and how business organizations should realize their responsibility towards society. The model was introduced by Archie B. Carroll in 1979, who highlighted four key corporate social responsibility (CSR) dimensions into the framework- economic, legal, ethical, and philanthropic responsibility. The economic responsibility lies at the bottom of the pyramid because without achieving the economic objectives, a company cannot fulfil its legal, ethical, and philanthropic responsibilities.

According to Carroll, CSR refers to the business behavior that is economically profitable, compliant with the law, is ethical and socially supportive. The primary business responsibility is to make profits and comply with the law, and then go beyond these obligations by taking discretionary initiatives.

In 1991, Carroll categorized the CSR model into four dimensions by using a pyramid, which illustrated how businesses could build their character along the four tiered pyramid. Since its introduction, the model holds strong relevance to the contemporary business environment. Although, the pyramid design is still under discussion and at often criticized for not considering the contextual factors, the model can be practically applied to understand the corporate social responsibility efforts of any business organization. As the model is easily understandable, it makes practical application for organizations easier, as they understand how they can build their character to reach at the top of pyramid.

Overall, the model provides a conceptual framework for organizations, and encourages them to think holistically while formulating CSR strategies. If any of the level is missing, the organization cannot reach the highest CSR level.

In this report, the CSR strategies of McDonalds are analyzed by applying the Carroll’s pyramid model.

2. Model application on McDonalds

2.1 corporate social responsibility (csr) objectives of mcdonalds.

McDonalds aims to reach the carbon neutrality, reduce environmental externalities, promote voluntarism among employees and donate to the charity. Company is committed to the highest social responsibility standards across the whole supply chain. McDonalds ensures that all its suppliers comply with the environmental standards, take care of workers’ safety, treat them with respect and dignity and adopt environment-friendly manufacturing processes. To achieve these CSR objectives, McDonalds is taking various economic, legal, ethical, and philanthropic initiatives, which are explained in the next section.

2.2 Dimensions of corporate social responsibility

2.2.1 economic responsibility, 2.2.1.1 economic responsibility of mcdonalds.

McDonalds fulfills its economic responsibility by focusing on the practices that support long-term business growth, while accomplishing the set philanthropic, environmental, and ethical standards. Company balances its economic decisions with the overall impact on society. It offers products and services that society needs, and makes a profit from them to continue business operations.

The economic expectation is considered basic social responsibility, because society expects McDonalds to become profitable so that it could incentivize the investors to invest for business continuity. In its origin, society considers McDonalds as an institution that produces and sells goods/services to make a profit in a way that benefits all stakeholders.

2.2.1.2 How McDonalds fulfils its economic responsibility?

McDonalds fulfills its economic responsibility by taking the following initiatives:

• Generate high and consistent level profitability- McDonalds strives to generate high profitability on a consistent level by leveraging the opportunities that help business in targeting new products and customer markets. Through effective and efficient business management, the company is able to reduce the costs, which further increases the profit margin.
• Minimize costs- Cost minimization is another key economic objective. McDonalds reduces its costs by actively managing the variable costs. Company also invests on automated technologies to reduce the labor costs. Cost reduction objective is also achieved by diligently tracking the expenses, and making the most out of available resources.
• Reduce waste- Another important initiative taken to reduce the costs is the introduction of the new manufacturing process that is helping McDonalds in minimizing the waste. Waste minimization is not only helping McDonalds in fulfilling its environmental responsibility, but it also enables the business to cut costs and maximize profitability. McDonalds is also aiming to increase the use of recycled products that could lower the material cost and benefit the society by consuming lesser resources.
• Increase operational efficiency- McDonalds strives to operate a business at high-efficiency level. To do this, the company arranges regular training sessions to reduce the error rate and streamline communication between all supply chain partners. The company encourages continual improvement culture and arranges mechanisms to measure the performance. Data is collected to review and refine processes, and information required to fix the operational inefficiencies is made easily accessible. By doing so, McDonalds has been successful in maximizing its operational efficiency, which reflects into reduced errors, improved accuracy and enhanced customer satisfaction.
• Increase product and service quality- Customer retention is another important economic objective of McDonalds, which is achieved by increasing the product/service quality. The company has infused the quality into work culture, and employees are trained to deliver superior customer service. Periodic surveys are arranged to take the opinions of customers, and collected data is then used further enhance the product/service quality according to customers’ expectations.
• Maximize sales- Sales maximization is another economic objective of McDonalds. Company adopts various strategies to maximize the sales. Through successful cost reduction, the company offers discounts to customers to drive sales. Other key measures taken to achieve the sales increase target include- expansion to new markets, introducing new products, and adopting effective marketing and communication strategies.
• Maintain strong competitive positioning- To strengthen the competitive positioning, McDonalds invests on emerging innovative technologies. Company invests on market research to know its customers, and strengthens collaboration with its strategic partners to proactively respond to the external environmental changes.

These all economic initiatives are helping McDonalds in fulfilling its economic responsibility so that it could remain sustainable and continue its business operations for benefit of all involved stakeholders.

2.2.1.3 Relevant stakeholders

By taking economic initiatives, McDonalds fulfils its responsibility towards- shareholders and investors who expect the company to generate an attractive return on investment, customers who expect high product quality at reasonable prices, and employees who expect a fair and safe work environment. Fulfilling these all economic responsibilities provides the foundation of CSR pyramid.

2.2.2 Legal responsibility

2.2.2.1 legal responsibility of mcdonalds.

Legal responsibility of businesses involves compliance with the set rules and regulations. McDonalds is expected to ensure compliance while functioning within society. These basic rules reflect society’s viewpoints of codified ethics, and determine how McDonalds could conduct its business practices in a transparent and fair manner. Local, regional, and national level legislators define these laws and regulations, which ensure that the business makes a profit without compromising over the greater good of society. In order to avoid the lawsuits that may result from the non-compliance, McDonalds has appointed a compliance officer on a high-level position in the organizational chart to ensure the business meets all basic legal responsibilities.

2.2.2.2 How McDonalds fulfils its legal responsibility?

• Products/services complying legal standards- McDonalds produces products/services that meet legal standards. Product safety standards are met, and only those products/services are produced that are legally allowed. While advertising products, McDonalds avoids vetting misleading claims about products and business practices to defraud consumers.
• Labor law- Labor law encompasses various laws related to employment, remuneration, work conditions and industrial relations. McDonalds complies with labor law by complying with the minimum wage law for workers. Workplace safety is ensured by complying with the occupational health and safety standards. Company complies with the industrial relations act to manage the relationship with workmen and settle industrial disputes. Company also ensures the effective implementation of anti-discrimination laws to provide an open, inclusive and equitable work environment.
• Contract fulfillment- McDonalds fulfils all its contracts with internal and external stakeholders to protect their rights as per each agreement. It fulfills general employment contracts, partnership agreements, indemnity agreement and contracts related to property and equipment lease. Company also fulfills its legal duties towards suppliers by remaining fair in its dealings with vendor organizations. It also helps suppliers in maintaining the approved quality and expected delivery standards.
• Intellectual property- McDonalds takes care of all intellectual property laws to enforce and protect the rights of owners and creators of inventions. The intellectual property areas include trade secrets, patents, trademarks and copyright laws.
• Privacy and information protection- McDonalds has clearly stated its privacy policy, and takes all relevant measures to protect the customer information. Management has appointed data security and compliance incharge who take appropriate measures to prevent the identity theft.
• Environmental law- McDonalds strictly complies with the environmental legislations to reduce the hazardous waste, and takes care of the biopersity and conservation issues to prevent pollution incidents.
• Paying taxes and other duties- McDonalds pays all taxes and other duties to the government as a responsible corporate citizen. Company keeps all its accounts clean and transparent to facilitate the government in tracking business’s economic state.

2.2.2.3 Relevant stakeholders

Overall, McDonalds is a law abiding, a social responsible enterprise that operates within the regulatory boundaries, and complies with various laws like environmental, criminal and labor laws. All major stakeholders including customers, suppliers, employees, regulators and general society have expectations from McDonalds to behave like a responsible legal entity, and McDonalds fulfills all its legal obligations towards societal stakeholders. Inability to take care of the legal rights of any stakeholder group could damage the McDonalds’s reputation, and company may also face expensive lawsuit.

2.2.3 Ethical responsibility

2.2.3.1 ethical responsibility of mcdonalds.

McDonalds has an ethical responsibility towards all key stakeholders. Fulfillment of ethical responsibility requires McDonalds to operate in ethical and fair manner. To embrace ethical responsibility, McDonalds treats all concerned stakeholders including customers, suppliers, employees, investors, and leadership fairly. The ethical responsibility extends beyond normative expectations. By taking the ethical responsibility, McDonalds embraces activities, practices and standards that are not necessarily written down but are expected by the society. It could be difficult to differentiate between ethical and legal expectations as legal regulations are based on ethical premises but the ethical expectations go beyond basic laws.

2.2.3.2 How McDonalds fulfils its ethical responsibility?

McDonalds fulfills its ethical responsibility by taking following initiatives:

• McDonalds sets higher minimum wage to its employees, and makes sure that all workers get competitive pay that justifies the efforts they exert to accomplish the assigned tasks and responsibilities.
• Besides complying with the laws dictating workers’ rights, McDonalds takes a step ahead by taking employee welfare initiatives. Company trains its employees to take better care of mental and physical health, and adopt a more environmentally responsible attitude. Company also helps its employees in their professional development, and develops work environment that makes work life balance easier for employees.
• The company guarantees that all raw material is ethically sourced from the suppliers take care of environment. All products and services across whole supply chain are sourced in an ethical manner. Company further ensures that the products obtained from the suppliers are sourced through sustainable methods.
• All stakeholders including suppliers, employees and distributors are treated with respect and in fair manner.
• The company adopts ethical labor practices for supply chain partners that include using products that are certified as meeting the fair-trade standards.
• McDonalds realizes its responsibility towards environment, and beyond complying with the basic environmental laws, company is actively taking initiatives to reduce the carbon footprint, and invests heavily in environment-conscious businesses.

2.2.3.3 Relevant stakeholders

McDonalds recognizes and respects the evolving moral and ethical standards that are adopted by the society. Management prevents infringement of ethical standards while pursuing business objectives, and acknowledges that the ethical behavior and integrity goes beyond compliance with basic laws and regulations.

2.2.4 Philanthropic responsibility

2.2.4.1 philanthropic responsibility of mcdonalds.

Philanthropic responsibility denotes the McDonalds’s aim to make world a better place to live. Other than fulfilling the legal and ethical expectations of society, McDonalds also fulfills its philanthropic responsibility by getting actively engaged in the volunteer work. The company dedicates a specific portion of earnings on charity.

2.2.4.2 How McDonalds fulfils its philanthropic responsibility?

In order to fulfil the philanthropic responsibility, McDonalds takes the following initiatives:

• Company trains its employees to spend specific hours every month in doing volunteer work for the society.
• Every year, company dedicates a specific portion of earnings for various societal causes.
• McDonalds also raises funding for the educational programs, and supports health initiatives for the betterment of society
• Company offers free products/services to the people who cannot afford them.
• Company supports the volunteer projects that are executed for broader social welfare
• McDonalds provides voluntary assistance to the public and private educational institutions to educate the society and make education affordable for all.
• Company also voluntarily assists the fine and performing arts, and arranges the cultural events for society.

2.2.4.3 Relevant stakeholders

The fulfilment of philanthropic responsibility enables McDonalds to meet the expectations of society and the general public. It strengthens the company’s brand image, and effective communication of the charitable work increases the stakeholders’ trust over business operations.

Multiple stakeholders indirectly benefit from the company’s philanthropic work. Like investors benefit from improved brand image, customers prefer brands with a socially responsible image, and employees take pride in getting associated with an organization that takes care of society. The society and general public for which the philanthropic actions are taken are the stakeholder group that derives direct benefit from the company’s philanthropic work.

2.3 Critical success factors of McDonalds’s corporate social responsibility

McDonalds has been successful in implementing economic, legal, ethical and philanthropic CSR initiatives. This section outlines some factors that are considered critical for CSR success.

2.3.1 Human resource

McDonalds has knowledgeable, skilled and competent employees who are responsible to implement CSR initiatives. Workforce owns the company’s CSR objectives, and is skilled to accomplish them.

2.3.2 Integration of CSR in strategic decision making

McDonalds has not only integrated the CSR into routine activities through a well-planned change process, but also considers CSR objectives while taking important strategic decisions. Such integration is vital for achieving the CSR objectives across all four dimensions.

2.3.3 Stakeholder relationships

McDonalds understands that successful implementation of CSR initiatives requires the company to manage close relationships with all key stakeholders, including customers, employees, supply chain partners, and general society. To do this, the company tailors its communication and relationship management strategies according to the relevance, importance and impact of each stakeholder group. McDonalds also ensures that all CSR initiatives are effectively communicated to relevant stakeholders through appropriate channels.

2.3.4 Benefits evaluation

McDonalds has identified CSR performance measurement metrics that are used to evaluate the return on investment. Through benefits evaluation, the company convinces the investors about how investment on various CSR initiatives is benefitting the business in either direct, or indirect manner.

2.3.5 Long-term view

Finally, it is very important to hold the long-term view. Top management of McDonalds understands that investment on CSR initiatives cannot give a tangible economic return in the short run. Therefore, management adopts a holistic view while evaluating the CSR benefits for the organization.

After understanding the critical success factors for successful CSR implementation, next section now discusses the drivers that motivated the McDonalds to actively engage in CSR activities.

2.4 Drivers for McDonalds’s CSR efforts

2.4.1 brand image.

Strong brand image is a powerful driver behind McDonalds’s CSR efforts. Company uses CSR as a tool to differentiate itself from competitors. The CSR initiatives have helped McDonalds in positioning itself as a socially responsible entity, due to which it is trusted by existing customers. CSR initiatives have also generated a positive brand image in potential customers’ minds.

2.4.2 Regulatory pressure

Although, adoption of certain CSR initiatives (like ethical and philanthropic) remains voluntary, but the regularly pressure to ensure active engagement in CSR activities is gradually making CSR inevitable. For instance, the government’s rising pressure to reduce the carbon footprints is pressurizing company to engage in environment protection initiatives.

2.4.3 Customer pressure

Customers are becoming increasingly vigilant of business’s social and environmental performance, and prefer brands with positive CSR image. McDonalds responds to this pressure by taking CSR initiatives that meet customers’ expectations.

2.4.4 Competitor pressure

Considering the impact of CSR on tangible and intangible business performance, competitors are widely adopting CSR as a tool to achieve business objectives. It has created an environment in which investment on CSR efforts has become almost inevitable. McDonalds has to invest on CSR to remain relevant in the intensively competitive market.

3. Conclusion

To conclude, business organizations must understand the importance of corporate social responsibility to ensure long-term survival. McDonalds considers CSR a mandatory practices that can no longer be ignored. By investing on economic, legal, ethical, and philanthropic CSR activities, McDonalds has successfully improved its brand image in stakeholders’ mind. By taking initiatives for the environment, social welfare, and benefit of broader stakeholders, McDonalds has gained positive media coverage, which has strengthened its positioning in a competitive marketplace.

Customers feel satisfied when they purchase product from a company that helps the community. Employees also take pride in getting associated with a socially responsible organization, and winning the investors and shareholders’ trust over business operations also becomes easier when business demonstrates its ability to meet the expectations of all stakeholders without compromising over economic objectives.

By wisely investing on the CSR initiatives, McDonalds has been successful in boosting its long-term growth and profitability. While living in a globally interconnected world, it is important for businesses to collaborate with all stakeholders and take care of each other’s’ needs that could eventually benefit themselves.

Although, Carroll’s CSR pyramid model provides valuable guidance about how companies can ensure their long-term survival, but model does not provide guidance about how businesses could avoid the clash between CSR and business objectives. Model also focuses on only four CSR dimensions and does not identify the contextual variables that may positively or negatively influence the firm’s ability to implement CSR strategies.

4. References

Anyalebechi, S. M., & Owugah, L. (2022). Contradictions between Carroll’s Pyramid of Corporate Social Performance Model: A Case of Shell Nigeria. International Journal of Development and Public Policy, 2(5), 183-201.

Baden, D. (2016). A reconstruction of Carroll’s pyramid of corporate social responsibility for the 21st century. International journal of corporate social responsibility, 1(1), 1-15.

Carroll, A. B. (2016). Carroll’s pyramid of CSR: taking another look. International journal of corporate social responsibility, 1(1), 1-8.

Claydon, J. (2011). A new direction for CSR: the shortcomings of previous CSR models and the rationale for a new model. Social Responsibility Journal.

Ehie, I. C. (2016). Examining the corporate social responsibility orientation in developing countries: an empirical investigation of the Carroll's CSR pyramid. International Journal of Business Governance and Ethics, 11(1), 42755.

Gholami, S. (2011). Value creation model through corporate social responsibility (CSR). International Journal of Business and Management, 6(9), 148.

Lu, J., Ren, L., Zhang, C., Rong, D., Ahmed, R. R., & Streimikis, J. (2020). Modified Carroll’s pyramid of corporate social responsibility to enhance organizational performance of SMEs industry. Journal of Cleaner Production, 271, 122456.

Masoud, N. (2017). How to win the battle of ideas in corporate social responsibility: the International Pyramid Model of CSR. International Journal of Corporate Social Responsibility, 2(1), 1-22.

Nalband, N. A., & Kelabi, S. A. (2014). Redesigning Carroll’s CSR pyramid model. Journal of Advanced Management Science, 2(3).

Paul, E., Gibson, J., & Smith, P. (2019). Influential Article Review-The Global Pyramid Model of CSR-What is the Best Way to Perform Corporate Social Responsibility. Journal of Leadership, Accountability and Ethics, 16(6), 1-27.

Schwartz, M. S., & Carroll, A. B. (2003). Corporate social responsibility: A three-domain approach. Business ethics quarterly, 13(4), 503-530.

Štreimikienė, D., & Ahmed, R. R. (2021). Corporate social responsibility and brand management: evidence from Carroll’s pyramid and triple bottom line approaches. Technological and Economic Development of Economy, 27(4), 852-875.

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Community Social Responsibility of McDonald's and A

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Introduction

Many companies use Community Social Responsibility (CSR) initiatives ranging from small sponsorships or programs to funding entire initiatives themselves. CSR’s are mainly used to gain positive press and publicity. Sometimes this is not the case and cause some groups to disagree with your initiative. For this assignment the CSR initiatives that will be looked at are; McDonald’s’ Ronald McDonald House Charities (RMHC), and A&W’s use of hormones and steroids, rather its lack thereof, in its products.

McDonald’s

McDonald’s is an American fast-food company founded in San Bernardino, California in 1940. It has grown to become one of the most recognized businesses worldwide with locations in over 100 hundred countries. In 1974, Philadelphia Eagles member Fred Hill’s daughter became sick and was diagnosed with Leukemia, he and his family found themselves out of a place to live while she received treatment at the hospital (Forbes, 2013).

Proficient in: Community

“ Ok, let me say I’m extremely satisfy with the result while it was a last minute thing. I really enjoy the effort put in. ”

With support he was able to raise funds for a place to stay for families struggling with sick children in the hospital (Forbes, 2013). Reaching out for more support fast food giant McDonald’s agreed with its name being added to the charity. Ronald McDonald House Charities was then formed and would continue to grow to more than 64 different countries in 2018 (RMHC, n.d.).

Ronald McDonald House Charities has four initiates to its CSR approach. These initiates include Ronald McDonald Houses which are homes built to provide support and resources to families in need to help keep them together. Ronald McDonald Family Rooms located inside of hospitals to provide a safe place for families to rest and recoup together.

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Ronald McDonald Care Mobiles which is mobile healthcare units that comes directly to children who need it. Lastly, grants to help sponsor and support children in health care need worldwide (RMHC n.d.). Stakeholders involved in the Ronald McDonald House Charities operations include McDonald’s shareholders and customers. Shareholders are involved when McDonald’s offers special promotions such as McHappy Day when a percentage of each meal sold goes directly to RMHC. Customers are involved because their purchasing power of how much they buy during these special events directly relates to how much money is donated. Direct donors are another stakeholder because majority of the funds received at RMHC come from these individuals. Doctors and nurses who are located in the hospitals and care units that provide the medical treatment to sick children are another stakeholders. Without these people providing the medical expertise this organization would not be able to exist. Lastly, construction workers, building planners and volunteers that help build the Ronald McDonald Houses are included in stakeholders at RMHC.

Factors that can potentially get in the way of the initiative succeeding is lack of community involvement and lack of support from the public health sector. In a case study in Norway relating to the development of an RMHC facility, many members of the local community were opposed to the idea. The belief of healthcare providers including doctors thought that a private sector company should have no role of involvement when it comes to the public sector of healthcare (Bronn, 2006). They only agreed to the idea being implemented if RMHC could not be involved in the running of the facility (Bronn, 2006). Another reason for them being against the initiative is that “McDonald’s is the worst example of a firm with which a public hospital should have an alliance” (Bronn, 2006). This is thought because McDonald’s food products have been proven to be unhealthy, cause obesity, and are associated with an inactive lifestyle (Bronn, 2006). Being a CSR that is aimed to help sick children and families in need is contradictive when the products that McDonald’s is known to sell cause health problems in individuals who eat it regularly. Another group that seems to be against the idea of RMHC CSR is the shareholders of McDonald’s. Very minimal of net profits that the company earns each year is actually donated towards RMHC. This can be seen in 2011 when out of $5.5 billion earned in net profit, only $34 million was donated directly from the company, which is less than .08% (Forbes, 2013). Customers donated close to 1.5 times more than McDonald’s at $50 million in 2011 (Forbes, 2013). With McDonald’s only donating a very tiny portion of its profit towards its CSR, it can be seen shareholder profits are far more important to the business than how much it claims RMHC is.

A&W is a burger chain based out of California that advertises its meat as having no added hormones or steroids. The company has over 35,000 employees as well as over 800 locations in Canada. Recent marketing has been focused on them not adding hormones or steroids to any of its meat, which A&W says makes it more natural. However, this marketing does not excite nearly everyone as groups like farmers have begun boycotting A&W for its practices of keeping its meat more natural.

The second CSR is A&W’s no hormone or steroid meat which it uses to sell its meat as more natural and better for the consumers and animals. Since the start of this program sales for A&W have grown by 7.6% (Haney S, 2016) so clearly customers enjoy having more natural beef. While the A&W no hormones and no steroids tagline may seem good for its consumers, in actuality it makes no difference on the health of the consumer or animal and could lead to a worse hunger crisis. When A&W unveiled its new tagline of no added hormones or steroids, it was expecting that consumers would be happier knowing that the food they are eating is natural and the animals are being treated better. On the contrary to this, many farmers have become outraged at these practices and decided to boycott A&W. The article by Andrew Campbell shares the opinion that many of these farmers and says that A&W is “clearly only interested in selling a few more hamburgers because of fear”, (Campbell, 2013). Andrew sells A&W’s initiative as fear mongering scaring people into buying its burgers because they do not know better. Andrew also has a point that a small hormone injection onto its cows will tremendous ecological impacts. It is important to note that not all farmers are against A&W as it is still being supplied with beef from farmers. The majority of customers still remain unaware of the implications of no hormone beef and think that A&W burgers are better for them and the animals.

A&W’s no hormones or steroids beef does have many negatives, however, there are still reasons that a stakeholder like farmers would work with them. Although there are many ecological drawbacks to not using these hormones, the fact that they are willing to do it at all means that they care about what is in its food and the quality of life of the animals they use in its food. A&W’s CSR could be seen as a response to all the negative press thrown against McDonald’s for its use of slaughterhouses, so having a company committed to taking care of its animals despite all the criticism it has amassed is good news.

To conclude, CSRs may look good on the surface but behind the scenes there may be a difference of opinions. This is the case with CSR initiatives as well. CSR may seem all good on the outside but when you look into them a little deeper, they are usually not all great and have hidden negative points. In the examples of the Ronald McDonald House Charities, many people do not like the fact that McDonald’s only contributes a very small portion of its revenue to a charity with its name on it. McDonald’s in this CSR are taking a defensive approach, by only doing what they need to do and no more. As for A&W, many farmers are boycotting fast-food restaurants because they are using meat with no steroids and no hormones. A&W are taking an accommodative approach to the CSR initiative in that they do not have to change its products, but are doing so anyway, despite the negative feedback from some stakeholder groups.

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Home — Essay Samples — Business — Mcdonald's — Mcdonald’S Csr Initiative To Sponsor Sporting Organisations And Events

Mcdonald’s Csr Initiative to Sponsor Sporting Organisations and Events

• Subject: Business
• Category: News Media , Corporations , Food and Drinks Companies
• Essay Topic: Business Insider , Company , Mcdonald's
• Words: 1858
• Published: 15 January 2020
• Downloads: 27

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Csr at Mcdonald's

In: Business and Management

The most essential characteristic of an organisation is the focus on ethical behavior. By ‘doing the right thing’ internally and externally the business can create a good working environment, whereas at the same time the surroundings and the society takes advantage. Difficult is that ethical matters are based on individual principles and ideals. Resultantly, ethical matters are not easy to put into effect and easy to overlook. Corporate social responsibility (CSR) is rapidly becoming one of the principles on which modern business is built (Hancock, 2004). Areas can be identified were improvements should be made, and use it for strategies in future business plans. CSR refers to the economic, legal, ethical and discretionary responsibilities (Carroll & Buchholtz, 2000; Swanson, 1995). The organisations are furthermore faced up to social demands for which they are likely to show responsibility for. Following the organisation can respond in different ways. The different types of responding to the social demand are obstructive, defensive, accommodative or proactive (Carroll & Gatewood, 1981). Within this essay it will be examined how these CSR principles were / are utilized in the service business McDonald’s. For evaluating the social performance of McDonald’s there will be a closer look at the ethical & discretionary responsibilities and the responses proactive & accommodative. Finally it will be examined how to improve the social responsibility of McDonald’s by using the tools code of ethics and ethical structures. McDonald’s opened its first Bar-B-Que restaurant in 1940 by the two brothers Richard and Maurice McDonald in San Bernadino, California. It has grown quickly and opened the 100th restaurant in 1959. Later in 1967 it opened the first international restaurants in Canada and Puerto Rico and is today selling its products in 118 countries around the globe....

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