***END OF SECTION A *** Section B: Case Analysis (50 Marks)

MacDonalds Social Responsibility

Fast food has received a bad rap over the years. However, that hasnt stopped millions of people around the world from patronizing the global food giants restaurants. That suggests that the golden age achieved the main goal the company had set: earning the trust of consumers.

McDonalds has evolved over the years, becoming the fast-food behemoth it is today. Its CSR has also seen remarkable changes. Social responsibility has meant different ideas at different times for this fast-food giant. Lets look at how the companys approach to CSR has evolved over the years.

Pure Philanthropy Over Three Decades

The period between 1955 and 1989 was the golden age for the companys CSR. During that time, social responsibility meant community involvement. McDonalds developed and successfully ran many national grassroots programs. The company strived to build a strong image as a business that communities could trust. During those days, the companys CSR efforts boiled down to pure philanthropy.

Over the decade starting in 1990 and ending in 2000, MacDonalds shifted its CSRs focus toward globalization. Thanks to easier communication and better technology, CSR at McDonalds evolved to include issues outside of philanthropy. The company started showing

concern for issues such as nutrition, international conflict, anti-Americanism, and the environment. Over time, the companys CSR has developed into a core element of the business long-term strategy.

McDonalds Incorporates CSR into its Overall Business Strategy

In the year 2000, the company realized that it needed to unite its social responsibility with its overall business strategy. The company needed a cultural shift where CSR would become central to every business operation. Social responsibility had to stop being something that exclusively concerned a specific department. It needed to become everybodys business.

For example, in 2006, McDonalds celebrated its 50th birthday. On that day, the company gave $50,000 in support of children work. The company directed its donation toward different children organizations that care about childrens well-being and health.

Moreover, consumers today want to know how businesses such as McDonalds handle animals. Perhaps that is why McDonalds regularly conducts animal welfare audits through its independent Animal Welfare Council.

The company performs these audits to find out how well its suppliers handle animals throughout processing. McDonalds high standards for animal welfare practices now guide the entire food industry.

In 2013, McDonalds in the U.S. and Canada together with their franchisees announced their decision to invest $6.5 million to support coffee farmers. The initiative aimed to provide technical training and support for coffee farmers in Central America.

Working with leading international organizations, McDonalds also helped farmers produce and process their coffee sustainably. The company had earlier demanded of its suppliers that they only deliver 100-percent Rainforest Alliance certified coffee. The fast-food giant saw the wisdom of enabling farmers to comply with the new requirements. In this case, farmers, McDonalds, and suppliers won.

McDonalds social responsibility activities have not gone unnoticed. From showing concern for animals and helping needy children to supporting farmers and disaster relief efforts, McDonalds gives. Indeed, the company has shown way more kindness to communities across regions than this article has revealed. Still, some of the CSR activities have received harsh criticism. But McDonalds seems to have done more good than harm for the world.

Q1: Who is/are the most important stakeholders of MacDonalds? Please explain your judgment. (10 marks, no more than 300 words)

Q2: Please discuss your understanding why conducting CSR is important to MacDonalds, the giant in the fast-food industry. (20 marks, no more than 300 words)

Q3: Why did MacDonalds change their CSR activity from pure philanthropy to the broader scopes of social issues of children, farmer, and animals? (20 marks, no more than 300 words)