THE MCDONALD’S

UNETHICAL BEHAVIOR &

IMPLECATIONS

Presented byFrancis Mensah

MensahFMGT7019-8

WHAT IS MCDONALD’S ABOUT

1. Mcdonald’s can be ascribed as the most successful fast food provider of our

times. The Corporation was founded by Ray Kroc on 15th April, 1955 after

taking over McDonald’s Restaurant from Richard and Maurice McDonald

(McDonald Brothers) his employers.

2. Ray Kroc commenced his chain of restaurants in Des Plaines, Illinois (Via

Chicago), where the McDonald's Corporation was born, Ray offering the

McDonald Brothers 0.5% of gross sales (MCSpotlight, n. d.).

UNETHICAL BEHAVIORS FOUND IN MCDONALD’S

1. Corporate Social responsibility ethics violated.

2. Geoffrey Guiliano, a main Ronald McDonald actor, quit on ethical

grounds.

3. Ray Kroc donated $250,000 to presidential campaigner Richard Nixon

“Watergate corruption scandal” (MCSpotlight, n. d. p. 3).

4. London Greenpeace revolt against McDonalds’ between 1986 – 1990.

UNETHICAL BEHAVIORS FOUND IN MCDONALD’S CONT’

1. McDonald's sued a Jamaican for breach of trademark in

Jamaica.

2. McDonald's claim of global dominance backfired.

3. Supreme Court of Denmark ruled against McDonald's.

4. Food poisoning from McDonald’s burgers.

MCDONALD’S ETHICAL STANDARDS

1. McDonald’s motto of Quality, Service, Cleanliness and Value

(Q.S.C. & V.) epitomise its ethical beliefs.

2. Their labels are clear and concise.

3. McDonald’s nutritional information was the first of its kind in UK.

restaurant group business throughout the country for customer benefit.

4. McDonald’s awarded the highest Royal Society grade for the Prevention

of Accidents (RoSPA) “Quality Safety Audit scheme”.

5. McDonald’s achieved the “Most Parent Friendly” restaurant by

Tommy's Parent Friendly Campaign in the UK for two successive years.

INFLUENCE OF LEADERSHIP1. Leadership is the process of influencing followers to achieve

organizational goals (Mission and vision).

2. An effective leader embodies interpersonal skills, such as diplomacy, respectfulness, listening skills, empathy, and fairness in dealing with others.

3. An authentic leader possesses mental capacity and ability, that is commensurate with formal education, decision-making ability, communication and creativity potentials, an experience, diligence, and above all the ability to create and articulate a clear vision.

4. A Credible, charismatic, encouragement, and the ability to motivate others even in turbulent times are added leadership attributes.

5. A leader MUST possess certain basic values, such as strong ethical behavior, honesty, integrity, and trustworthiness.

 

MCDONALD’S RESPONSE TO SOCIAL RESPONSIBILITY

1. Hamburger University opened in Elk Grove, near Chicago.

2. McDonald's restaurant in every US state.

3. Ronald McDonald Children's Charities is founded in his memory to raise funds in support of child welfare.

4. McDonald's sponsored the Child of Achievement Awards.

5. McDonald's charity for child welfare fundraising, Ronald McDonald Children's Charities, was registered.

6. McDonald's sponsored athletics in the UK through the McDonald's Young Athletes' League and the International McDonald's Games.

SOCIAL RESPONSIBILITY RESPONSES CONTD:

1. Development of local community - OPPORTUNITY FROM DAY ONE.

2. Create opportunity.

3. Promote diversity and inclusion.

4. Improving the Lives of Children and Their Families.

5. Strengthening Communities.

CULTURAL, ENVIRONMENTAL AND LEGAL IMPLICATIONS1. McDonald’s plan 20% increase in energy efficiency in all its

global operations.

2. Increase energy efficiency through its restaurant standards.

3. An increase in amount of In-Restaurant recycling activities to 50% and minimize waste generation.

4. Maintaining environmental regulations.

5. Water efficiency management.

IMPACT ON STAKEHOLDERS1. Fast food nutritional issues.

2. Unionization problems.

3. Child labor.

4. Causing deforestation.

5. Bad image which affects market

price and therefore investment

STAKEHOLDERS

OUTCOMES OF EVENTS AND COMPARATIVE ANALYSIS 1. Bad judgment.2. Longest lawsuit in the UK.3. Bad image for McDonald's.

OUTCOMES OF EVENTS AND COMPARATIVE ANALYSIS CONT’

McDonald’s escalates CSR projects globally:

1. Hamburger University opened in Elk Grove, near Chicago.

2. McDonald’s “Best Of Green” Report Recognizes Environmental Innovations from around the World.

3. McDonald's Awards Suppliers for Advancing Global Sustainability Initiatives.

OUTCOMES OF EVENTS AND COMPARATIVE ANALYSIS CONT’

McDonald’s escalates CSR projects globally:

1. McDonald's Celebrates 90 Ground breaking Advancements in Environmental Practices Around the World.

2. McDonald's and Environmental Defence Fund Mark 20 Years of Partnerships for Sustainability.

3. McDonald's(R) Funds $100,000 Scholarships to Four Hispanic Students.

FAIRNESS OF PUNISHMENTS1. Denial of fair trial for Steel and Morris by UK

judicial system .2. No consequences for McDonlad’s offences.3. No compensation for customers affected by

unwholesome food by McDonald’s.

RECOMMENDATIONS & CONCLUSIONS

RECOMMENDATION & CONCLUSIONS CONT’

1. It is a fact that social circumstances tends to have a major influence over behavior. Apparently, an individual may have carefully thought about a situation and taken a decision on what is right and may be motivated to act accordingly, nonetheless, the corporate or social context in which the individual finds himself may create serious barriers to do so.

2. As individuals, we need to recognize that our social environment will greatly influence the range of options that are open to us and can significantly influence our behavior. Otherwise good people can, in the wrong circumstances, do bad things and less ethically motivated individuals can, in the right circumstances, do the right thing.

3. Business leaders therefore have a responsibility for the business environment (corporate culture) to encourage or discourage ethical behavior. Ethical business leadership require this skill: to create the circumstances in which good people are able to do good, and bad people are prevented from doing bad (Harris, 2000, p. 8).

QUESTIONS

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