Identify where McDonald’s is currently providing social and environmental value to their stakeholders.
The 2004 documentary film Super Size Me was not only a daunting alert to the society but also to McDonald’s management team. It brought to light how fast food industry had influenced the generation and encouraged poor nutrition for its sole profit making objectives. It appears that McDonald’s had recognized the problems in its systems approach and has been actively pushing to transition from a Tier 2 company to Tier 3 company for the past decade, recognizing that embedding sustainability in its business model is the only way to survival. The image of the corporation is slowly, but gradually changing – whether its mindset has truly transformed, McDonald’s has tried diligently to reshape its public image by providing social and environmental value to its stakeholders. This is partially reflected in the company’s financial performance; McDonald’s outperforms its competitors such as Wendy’s and Burger Kings.
McDonald’s stakeholders include their “three-legged-stool” - employees, Franchisees, and suppliers, as well as the investors, non-governmental organizations, academics and its customers. The environmental value provided by McDonald’s can be further looked at in two main areas: 1) food provided and its source; 2) contribution to addressing climate change and water risk. McDonald’s primary value proposition is to provide food, therefore, food choices and sourcing are on their top priority. According to McDonald’s 2012 – 2013 CSR report, the company is partnering with Alliance on Clinton Global Initiative to promote balanced nutrition choices – increasing fruit and vegetables access, better informed nutrition information and more customer choices. McDonald’s has also integrated sustainability in its supply chain – working collaboratively with its suppliers to support sustainable agriculture and beef production. Such improvements reduce the company’s carbon...