Mcdonald-a Sustainable Organization?
1. Executive Summary
This case study seeks to evaluate the interests of various stakeholders of McDonald’s Corporation, its relation and impact to the organisation’s sustainability, with recommendations aimed at propelling the organization into a sustainable corporation. Among the strategic issues affecting sustainability are identified as obesity, advertisements targeting children, environmental pollution and treatments of animals. These and others factors have pressured McDonald’s to shift to a more socially responsible position, as evident in its current corporate social responsibility practices. The study ends with recommendations geared towards a sustainable corporation.
2. Introduction
The McDonald's Corporation, established in 1955, is the world's largest fast food service retailing chain with over 31,000 outlets mainly operated by franchises and 465,000 employees in 121 countries. Although the company’s revenue in 2007 was USD22.8 billion with franchised and affiliated sales of USD46.9 billion (McDonald’s Corporation, 2007), McDonald’s revenue only increased at an averaged 8% annually from USD13.8 billion (2000) to USD22.8 billion (2007). Newfound emphasis in the late 1980s on healthy eating and environmental conservation has impacted on McDonald’s strategy and growth. 3. Stakeholder Theory
We will identify the interests of internal and external key stakeholders of McDonald’s since stakeholders supply the company with important resources in exchange for its interest to be fulfilled, thereby creating an exchange relationship (Hill et al, 2004). Examining stakeholders’ expectations in relation to strategy formulation is essential or various stakeholder groups may withdraw their support which could affect the organisation’s sustainability. This is as what was mentioned by Hart (2003) in “sustainable value framework”, that one of its four key elements was integration of stakeholder needs into corporate strategy on a long term focus. A
This case study seeks to evaluate the interests of various stakeholders of McDonald’s Corporation, its relation and impact to the organisation’s sustainability, with recommendations aimed at propelling the organization into a sustainable corporation. Among the strategic issues affecting sustainability are identified as obesity, advertisements targeting children, environmental pollution and treatments of animals. These and others factors have pressured McDonald’s to shift to a more socially responsible position, as evident in its current corporate social responsibility practices. The study ends with recommendations geared towards a sustainable corporation.
2. Introduction
The McDonald's Corporation, established in 1955, is the world's largest fast food service retailing chain with over 31,000 outlets mainly operated by franchises and 465,000 employees in 121 countries. Although the company’s revenue in 2007 was USD22.8 billion with franchised and affiliated sales of USD46.9 billion (McDonald’s Corporation, 2007), McDonald’s revenue only increased at an averaged 8% annually from USD13.8 billion (2000) to USD22.8 billion (2007). Newfound emphasis in the late 1980s on healthy eating and environmental conservation has impacted on McDonald’s strategy and growth. 3. Stakeholder Theory
We will identify the interests of internal and external key stakeholders of McDonald’s since stakeholders supply the company with important resources in exchange for its interest to be fulfilled, thereby creating an exchange relationship (Hill et al, 2004). Examining stakeholders’ expectations in relation to strategy formulation is essential or various stakeholder groups may withdraw their support which could affect the organisation’s sustainability. This is as what was mentioned by Hart (2003) in “sustainable value framework”, that one of its four key elements was integration of stakeholder needs into corporate strategy on a long term focus. A