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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…
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. ...
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