The McDonalds Story
A bricks-and-mortar retailing enterprise from the analogy of building and construction materials of bricks and mortar is simply a business that posses and operates within a physical location unlike the technological e-commerce businesses . Bricks-and-mortar retailing enterprises are facing sustainability challenges in an ever changing business environment that is coupled with technological advancements, natural calamities and shift in population patterns. Several businesses are thus forced to devise business strategies that will help them remain relevant in an ever changing and very competitive business environment. The issue of sustainability is centered on core human livelihood attributes. These attributes include protecting the environment from degradation, protection of human health and the establishment of sound political, economical and social frameworks that seeks solution for environmental and health problems . One such business that has defied the odds over time and cut a global niche for themselves through the application of sustainable business measures is the McDonald’s chain of fast food restaurants.
McDonald’s chain of fast food restaurants was started back in 1940 by the McDonald brothers Richard and Maurice . It has grown to be a global household brand in as far as fast foods chains of restaurant is concerned. Its global competitors include Starbuck, Kentucky Fried Chicken, and Subway Fast Foods. Deen et al. (2013, p. 2) attributes the global success of McDonald’s to Ray Kroc who they believe was driven by a global. Deen et al. (2013, p. 2) claim that, when McDonald’s sets its sight on a new area of establishment be it a country or a town, thorough research is carried out to establish the local culture before business is rolled out.
As earlier mentioned, one of the key drivers of enterprise sustainability is population patterns. Populations are driving a push towards sustainable clean business production strategies and initiatives . Enterprises with the most clean business production strategies are thus not only proffered by the masses but are also voted as the most ethical . Consumers have come to fall in love with their environment. Anything that degrades that environment becomes an enemy of livelihoods and as a result is considered as anathema. It is very necessary therefore for businesses that want to keep a clean record by enticing the human psychology to keep in mind that the mindset of the current population is pegged on saving the environment from degradation. It is for this same reason that McDonalds was voted for as one of the most ethical companies by the Ethisphere Council magazine in 2007 . Still revolving around the element of populations’ impact on the sustainability of a business, it is important to review the place of ethics, business integrity and responsibility to the society in the operations of an enterprise .Ethics is centered on what is acceptable, that which conforms both to the social and legal laws. There is always a conflicting choice between choosing that which is legal and ethical and that which is legal and unethical especially when the latter promises huge immediate returns. Although the latter is unsustainable the former is very much sustainable. Populations have to be convinced that a business is not only concerned about its profits but is also concerned by the general welfare of the public . Basing this argument on the precincts of what may be ethical and what may not be ethical may result in the opening of a Pandora’s Box. It is because the application of ethics from one perspective may not be qualified from another . For example for a business that is located in a developed nation where access forms of clean energy is in abundance to cease from using fossil forms of energy in its operation, may be considered ethical. To lay the same pressures on a business in an underdeveloped country where forms of clean energy are a mirage is not only unfair but also utterly irresponsible. Therefore depending on which perspective is used, as long as the business reference is legal, the basis of whether it is ethical or unethical may only lead to a dilemma . Populations are made of human beings. Human beings on the other hand are social beings, who demand social responsibility from other entities such as their fellow human beings and corporations alike. Corporations must be able to provide favorable working conditions for their employees where they can work with utmost efficiency while at the same time their moral values and social norms are upheld. The society and especially the immediate surrounding society also demands that the business comply with environmental safety regulations as well as take responsibility for improving the welfare of the society. Whether social responsibility interventions are genuine or meant to increase profit is an issue which is questionable .
The environment is an integral part of human livelihood. Every person desires a clean environment even if the drive for profits sets in a few times and makes individuals or enterprises want to degrade it a few times. For example when McDonald was put on the spot for contributing to the destruction by Greenspace a while ago, they were forced to publicly commit to support conservation policies on the Amazon forest . These policies would push for means of using the environment sustainably across their supply chains .
As a company that is conscious of the corporate social needs the society that encompasses its units may have, McDonalds has invested in the setting up of a social responsibility committee to advise its social responsibility initiatives . The role of the committee is centers on a continuous environmental scanning both internal and external and come up with viable social responsibility measures that can benefit its stakeholders . The 2008 McDonalds social responsibility report claims the existence of a more than forty (40) years old business conduct standards that guides the responsibility of doing what is right . The values embedded in this v guideline focuses on accountability, communication and responsibility therefore making it a continuous rather than an instantaneous quick fix approach . On children welfare, as much as there have been claims of McDonalds food contributing to cases of obesity in children, McDonalds has had extensive roles in fundraisings for child-cause charities . Whether this could be out of guilt, a trial at reversing the mistakes resulting from their profit-making efforts or a genuine giving back to the community remains a subject of debate. But either way, chances are that for those who have benefited in these perceived acts and measures of philanthropy may never see the other side of the coin. As a matter of fact, you cannot bite the hand that has just fed you.
McDonald’s accreditation as an ethical corporation by the Ethisphere Council magazine may have been based on the its position as an industry leader in advancing industry standards or probably its size With this approach, there are greater possibilities to overlook certain aspects like ethics and societal moral standings . For example, McDonald’s by the virtue and the advantage of being a large corporation may dictate to its suppliers on its chosen criteria of product and service deliveries . This approach may paint a whitewash picture to the public of how the enterprise is keen on what goes into the consumer’s product. McDonald’s holds an animal welfare policy that stipulates and guides on the handling of animal and animal products that it is supplied with . This includes a 2004 commitment to the public of embracing a humane animal and specifically poultry slaughter processes .
McDonald’s global plan to win strategy is pegged on the drive to provide a memorable customer satisfaction and experience and as a result also encompasses focus on customer values and interests . The understanding of providing a customer-oriented rather than an entirely profit-oriented corporation has played a key role in McDonald’s global expansion and reception in different parts of the world . Also the meal types offered in McDonald’s restaurants differ slightly from one geographical region to another in relation to culture and preferences of people in those regions. For example McDonald’s restaurants in China are found to provide cultural Chinese specialty foods on top of what is offered in their normal menu . This approach continues to enhance McDonald’s survival in these regions because they are perceived to identify with the specific needs and interests of the local populations.
It is said that a business is its people and this McDonald’s understands pretty well. The huge investments and responsibilities that McDonalds inputs on its employees are well documented on their reports. For example McDonalds does not employ underage employees in any of its global establishments . This goes without saying the rights of children are highly esteemed at McDonalds as a corporation. McDonalds also endeavors to observe all labor laws in all its geographical areas of operations. This is to say as much as legal implications and thus what is legal and ethical may differ from one nation to another or from one region to another; McDonalds will do whatever it takes to be compliant with the presented legal situation. McDonalds claim to embrace a diversity inclusion policy for all its workers and does not believe in the classification of its workforce background as whether being in the majority class or the minority class . The principle of equality irrespective of an individual’s race, social standing, religion or beliefs does prevail. The work environment is also made flexible and mobility options in some region are possible . Deen et al. (2013, p. 5) however disputes the working environment at McDonalds. They claim that McDonalds has been experiencing high staff turnover possibly because on the low emphasis put on education. They claim that the offer of low-skills jobs is viewed negatively by workers as retrogressive since it attracts minimal wage and as a result employees are often forced to seek greener pastures .
McDonalds has also continuously suffered the effect of a negative publicity that has been fueled by its perceived offering of unhealthy foods . This has been attributed mostly to its meals and drinks that have been associated and are believed to contribute to the prevalence of childhood obesity in children . It would be thus very important for McDonalds to invest heavily in turning this mentality around by introducing healthy alternatives. Consequently this may grant them leverage with nutrition sensitive customers in this nutrition sensitive age and thus enhance their sustainability in the long run. The focus on healthy feeding is at the centre stage at combating nutrition influenced diseases such as diabetes and obesity.
Which critical way sustainability is looked in business entities, it all draws back to three key elements. These elements are people, their health and their environment. Any efforts of welfare directed at improving any or all of these will definitely grant a sustainable mileage to an enterprise. It is the exact basis of sustainability. It is actually the mark of businesses that that existed for generations from those that did not stand the test of time. When an enterprise closely incorporates these three elements in their models and operations strategies, business sustainability is almost inevitable.
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