Social Responsibility at McDonalds
Social responsibility has grown from being a public relation tool or a philanthropic cause to making a pillar of the strategic decision-making process. It is seen as an ideology that a company has a responsibility to benefit the society. This responsibility can be either passive or active. In this manner, companies behave ethically and with sensitivity towards social, economic and cultural matters. Striving for social responsibility helps this companies have a positive impact on development, business and humanity with a positive involvement to bottom line results (Korgen 39). These businesses should contribute morally to the welfare of the community.
The McDonald Company
The McDonald Corporate was started in 1954 by the pioneer who revolutionized the American food industry, Raymond Kroc. It is one of the most valuable brands in the world. McDonalds Corporation is the world’s largest chain of hamburger fast food restaurants. McDonalds serves over 58 million customers world wide on a daily basis. In spite of the company having its roots in the US, McDonalds today has become an acknowledged citizen of the world. The restaurant is operated by a franchise, a partner or the corporation itself. The corporation‘s revenues come from rent, fees by franchises or royalties. McDonalds primarily sells cheeseburgers, French fries, breakfast items, hamburgers, chicken products, shakes, desserts and soft drinks.
The company’s social responsibility record
The customer’s opinion is a prime factor that influences the products’ success. The quality of the product is fundamental to the customer. It may be presented as the physical product and customer service. At McDonalds, the packaging of the product is guaranteed and the customer service efficient. Since McDonalds sells globally, it has accustomed to the way of living of the people. In India, a very different menu is presented to the customer. McDonalds has gone to the extent of observing the social habits of the Indians and has made an international offering on their menu. Among many other countries with different specialties accustomed to their way of living, India is the only country that McDonalds serves a vegetarian menu including sauces and cheese. The pricing strategy at McDonalds revolves around a number of things that include the price listings, the reduction functions available, and the financing alternatives available. This is important to note because this is how the revenue is made at McDonalds. The price has to take into deliberation for a suitable demand supply equation.
The company has qualified management, high quality food, advanced operational systems and unique global infrastructure. The company’s worldwide strategy is to be the best employer for people in each community. It delivers optional excellence to customers in each community around the world. The corporate has business practices that meet the needs of the ever-changing world. According to the McDonalds Company, social responsibility is not a program that starts and ends. It is an ongoing commitment. The company has accomplished a lot and gives back to the community, a principle by the founder of the corporate. In the very same way McDonalds continues to give, the corporate and its franchisee are known to support various local schools, youth polytechnic teams, senior citizen groups, safety awareness campaigns, literacy programs and other projects.
The McDonalds has a registered charity, Ronald McDonald Children’s Charity (RMCC) that helps children in need. It helps improve the physical and emotional value in children with life threatening diseases or disabilities and their families. This charity homes are spread in 24 countries with 240 house programs. The house programs accommodate 25,000 family members of children who must undergo treatment at associated hospitals. McDonalds works with suppliers to promote socially responsible practices in its supply chain strategy. This is part of its wider framework for corporate social responsibility. McDonalds has a code of conduct for its suppliers on how they should treat their employees. The company has gone to the extent of having social accountability throughout the supply chain as part of its supply chain strategy.
How a company’s social responsibility record influences the consumer behavior
It is a common trend today for the use of corporate social responsibility as an initiative to influence consumer and differentiate product offerings. Research shows that it builds on the growing market, through analysis that manipulates the consumers’ insight to fit. Motivation and timing in the corporate world, is a social initiative embedded with promotions. Business ethics in the corporate world is about prioritizing moral values and ensuring that behavior is aligned to those values. Social responsibility in marketing covers a wide array of issues (Massey 172). Examples are political and social marketing, consumerism, environmentalism and regulation. Most companies are playing part in the social responsibility act. McDonalds is ranked as the number one most admired food services company. It is one of the most recognizable logos and spokes character. Research shows that at the Packard children’s hospital center for healthy wealth, children between the age of three and five were given food in the McDonalds packaging. The same children were offered food without the packaging; they refused to eat the food without the packaging even after being offered the food more than once. This is a sign of the brand selling its product.
The McDonalds is a social responsible company. The fact that the corporate has a very strong name and recognizable characters make it very efficient reaching out to the large target group. The company is trying to face out its number one threat, the growing number of obesity cases in America. It now offers fruit wraps and salads in the menu across the world. McDonalds ensures that food and beverages served to the customers are safe. This includes working with suppliers who test and track their supplies. McDonalds implemented a host of family-friendly policies that fit workers. It has made a work schedule for mothers that live in America and work for the company, allowing them time to be with their children and take care of the domestic chores (Miller 93).
The McDonalds corporate has a number of animal welfare guiding principles. The Company being in the food industry ensures that it provides the customer with safe food products. The corporate believes in treating animals with care and respect. This is a quality in their welfare-guiding principal. It does not support cruel treatment to animals and addresses animal welfare issues. Experts have helped McDonalds to establish criteria in which it can measure the efficiency to the welfare practices. McDonalds encourages suppliers to conduct self-audits of how they treat the animals and should involve third parties.
Looking at the McDonalds SWOT analysis shows that its strengths include its strong global presence with its nearest competitor being only half its size. McDonalds is the domestic leader in both the local and international markets. It shows a prospective of taking up the food industry. Though it has its strengths, the corporate feels the impact of food saturation and as a result affected the market saturation. The company has opportunities of focusing on leading outlets in the world. It has slowed down in the expansion of other outlets but concentrated in the existing ones. It is however threatened by the changes in the global economy. The fluctuation of the foreign currency is a drawback for a global company of its kind. Despite the corporate being a fast food chain of restaurants it has sought to include healthy meals in its menu. McDonalds has reached the minority in the world through its house programs in the world. In Thailand where the wages range from 50-75 cents an hour, McDonalds has reduced its prices to less than a dollar for persons whose wage is approximately 250 dollars a month. This initiative shows its need to reach the minority. From the start McDonalds has been committed on doing right. It has policies in place that allow it to size and scope to help make a difference.
Korgen, Kathleen. Contemporary Readings in Sociology. Los Angeles: Pine Forge Press, 2008. Print.
Massey, Garth. Readings for Sociology. New York, NY: W.W. Norton & Co, 2009. Print.
Miller, Barbara. “Community Stakeholders and Marketplace Advocacy: a Model of Advocacy, AgendaBuilding, and Industry Approval.” Journal of Public Relations Research. 22.1 (2010): 85-112. Print.
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