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Management (McDonald's) - Essay Example

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McDonald's statement of Social Responsibility states that "Being a good corporate citizen means treating people with fairness and integrity and sharing success with the communities in the way we do business". Hence they are involved in many social charity works…
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Management (McDonalds)
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Management (McDonald's)

This was however not ethically rosy. The local business community was concerned that the aggression of the McDonald's franchise was anticompetitive and was also not auguring well with other workers in Brazil. There quick integration was considered unethical by preemption of competitors. This was formulated from their high rents that McDonald was levying from the local restaurants. Thus McDonald ended up in court for double rate rental fees factor on sales as compared to the US mother country scenario which is only 8.5%. Jordan (2000, p. A23); Korten, (2001, p. 419 -449).
On the side of the unsatisfied employees, there was gripe about their reduced hours of work and shifts to evade paying overtime. The Ministry of Labor in Sao Paulo was mandated to investigate these claims that the employees claimed prevented them from working longer to earn more overtime. The global practice of McDonald is however shift based during peak hours and to achieve efficiency, this strategy was deployed to minimized work hours to up to 8 hours a week. Due to lack of strong laws, McDonald got away with these allegations and is continuing with the practice up 30 years to date. McDonald senior management claims that this is what has helped them to survive the high inflation in the Brazilian fast food market and justify by the peril of other fast food companies in the past. Jordan (2000, p. A23); Burt (1983, p. 419-420); Korten, (2001, p. 419 -449).
McDonalds's Stakeholders' map by use of Sethi's Dimensions on Corporate Social Performance Sethi (1975, p. 58 -64)

McDonald has a network of stakeholder as shown in the diagram above. They have owners and investors who earn share after every financial period. They have banks that have lent them money to carry out their aggressive financial expansions. They belong to various trade associations that are based in the respective regions of investment. The media companies help them in the advertisements everywhere as well as in their publicity campaigns. The transport companies that they partner with help them in the JIT deliveries. They have a range of supplies in the cereals, poultry, meat, vegetable, ice cream ingredients and other food and drink soft products. They have recycling companies that help them on the collected packaging and wraps to avoid pollution. They have customers from children, youth, men and women. There is pressure group such as the case in Brazil that felt the Macdonald was preempting the potential competitors. Naylor (2004, PPT. 5.3); Sethi, (1975, p. 58-64).
McDonald also has got trade unions who sued them like in the case at Brazil for 'under employment.' They have millions of employees World wide. The European Union has also been stepping up regulations to the McDonald in relation to some trendy health concerns about some of their foods. The governments are related to them in the provision of business environment and tax collection. The local governments have been allowing them to set specific number of store while regulating competition. The business community is mainly composed of potential fast food restaurants who would like to see a level playing field of investment. The legal system is there to ensure that McDonald adheres to the standing law and order. Naylor (2004, PPT. ... Read More
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