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Synopsis

This case of US fast food giant MacDonalds revolves around

ethics, globalisation and sustainability. It tells about the ethical

criticisms of the company and their rigorous efforts to restoretheir credibility.

Introduction

MacDonalds is MNC company operating some 31,000

restaurants in 118 countries serving almost 60 million

customers in a day.

They are the market leaders in their industry and has avery innovative business model.

Issues

During the 1980s nutritionists and healthy eating

campaigners criticised the company for its standard fare

of high calorie burgers and fries that many saw as a major

cause of obesity rates, especially among young people.

Increasing affluence in Asia also lead to a wave of diet

problems which were similar to those in Europe.

The accusation was made by London activists group in

1980s that the company:

1. Exploits children with its advertising.

2. Pays its workers low wages.

3. Falsely advertised its food as nutritious and risked

the health of its most regular long term customers.

Critics claimed that the company had failed to provide a

balanced menu , that it provided insufficient nutritional

information and guidance , and that it actively encouraged

consumers

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(especially children) to make healthy choices.

Meanwhile, European government initiated common health

committee inquiry into obesity that saw executives from

macdonalds giving evidence. France government also

introduced taxes on all food and drink advertising.

Big Mac Fights back: Macdonald launched a substantial

turnaround strategy and introduced range of healthy

options on the menu, including salads and grilled chicken

flatbreads, porridge for breakfast and even opportunity for

parents to replace fries with carrot sticks and fruit inubiquitous childrens HAPPY MEALS.

A huge advertising was done by Macdonalds empsizing

the firms fresh and healthy new approach.

Macdonalds also launched exercise and sports intiative for

younge people.

In france in 2009 the company was promoting its McDoSports Tour, which enables children to try out Olympic

sports for free across country, as well as McDO Kids Iron

Tour ,a series of triathlons for under twelves.

In 2007 they served 100% rainforest alliance-certified

sustainably grown coffee in its UK restaurants, as well as

switching its trucks to bio-diesel made from its own

reprocessed used cooking oil.

Big Mac Goes East: Big Mac entered in asian market as the

demand for fast food in countries like India and china

started increasing.

Macdonalds opened 500 restaurants in china in 2009,

including more drive in formats and 24-hour delivery.

ISSUES: 1. In china also the obesity rates started

increasing, other diet problems and exercise related

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problems such as diabetes and heart disease also are on

the rise.

A 2008 report by group consumers International claimed

that global brands take advantage of lax laws in AsianCountries to promote calorie dense and nutrition-poor

foods to children.

The company this time has been less slow to respond to

its critics- a healthy option corn soup has emerged on the

menu in china, vegetarian burgers features in India, and

the games, competitions and special offers featured on

the companys Asian Kids zones have largely scaled back.

McDonalds was widely criticized in Europe as the food it served

lead to various health problems like obesity, heart disease,

asthma, and possibly mad cow disease.

There were also accusations of child exploitation as young kids

were targeted for fast food. Cruelties on animals, low wage to

workers were some of other criticisms it faced.

Only after its profits started to plunder it decided to change tohealthy food options like fruits, salads which is called as ethical

makeover for the company.

McDonald doesnt seem to take any pro active steps to avoid

any such criticisms in Asia.

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As there is no such government measures on fast food

companies and there are not much of organisations doing

about it .The company do not want to be ethical.

Fast food by nature cannot be healthy .All it can do is makeoptions available for people who are health conscious.

McDonalds is facing criticism in Japan after a number of itsapple pies were found to contain a banned food coloring agent(McDonalds apple pies found to contain banned food coloringin Japan, 2006).

While it is a pretty straightforward argument that we as adultsneed to takeresponsibility for our eating habits, the issue becomes morecomplicated when we starttalking about marketing unhealthy products to children.McDonalds must navigate a

tricky line: the company naturally wants to sell its products,and children are an easy

market. They also represent a potential lifetime consumer. Yetthe product itself isunhealthy, and many equate it (and other fast food) withobesity.

children under 12 years of age are unable to distinguish thedifference between education and marketing.

Therefore, companies must follow a narrow path ofethically-correct behavior in marketing products to children.

Indeed, in a reactionary measure, McDonalds has tried tore-brand itself to appeal to customers who now have differentpreferences. The companyprovides more transparency regarding food content andoperations. On the McDonalds

website, all nutrition information is disclosed

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Triple Bottom Line

Environmental solutions

Cattle should be fed grass and should be allowed to graze

Instead of Styrofoam (Plastic 6), there are bioplastics

(derived from plant starches and oils) that biodegrade that

can be used for packaging

Many waste materials that arent being recycled can be

recycled

Social

Healthier Options:

Salads with oil and vinegar based dressing

Grilled chicken (rather than fried)

Whole wheat buns/bread

Have Nutrition Facts present : People can know what they

are eating; if they knew, they might not want to eat it

Profits

Percentage of pre-tax earnings donated to the community; Involvement and/or contributions to projects with value to the

greater community

(e.g. support of education and training programs, and

humanitarian programs,

etc.);

Existence of a policy encouraging use of local contractors andsupplier

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Conclusion :

In the end, public awareness might be the most important tool.If individuals are enlightened about McDonalds practices andtheir impact on health, environmental pollution and culturechange, we can choose to not patronize its restaurants. Theaction may not shut the McDonalds down, but it might limit theimpact of the corporation.