Strategic Management and Sustainability #79
Corporate Social Responsibility on Fast food service companies
Dear reader,
In this article, we will take a closer look at the Corporate Social responsibility activities carried out in the Food Service industry. Specifically, the article will focus on the Fast Food sector of the industry and more specifically on the internationally, well-known, Fast Food Restaurant McDonald’s. The study has been inspired by the article cited in the reference, written by Edyta Gheribi at the University of Lodz, Poland.
Reading time: 10 minutes
When we talk about Corporate Social Responsibility (CSR), we refer to a strategy undertaken by companies not only to increase their financial profits but also to take care of the environment that surrounds them socially, environmentally, and economically.
CSR is a concept present in all businesses nowadays as it is a must for the image and ethics of the corporation towards outsiders and potential customers.
SUMMARY
The fast food industry is a sector in which the implementation of corporate social responsibility objectives is key and relatively easy to do. Therefore, McDonald’s CSR is directed towards several different stakeholders, more specifically, employees, consumers, environments, and communities.
The American company is involved in different campaigns and activities, aiming to show their compromise and meet their objectives in CSR. For instance, granting jobs to unskilled people who would have problems finding them, their economic conditions (related to other companies of the sector), and educational opportunities are some of the benefits they grant to their employees.
On the other hand, consumers are also considered by McDonald’s in terms of CSR, providing food coming from materials complying with the necessary standards (which has not always been this way), among other things. Charity activities, referring to the communities, reducing their emissions, improving their sustainability, etc. (in referral to environments) are different initiatives that the American firm carries out to show their compromise in CSR matters, as well as beneficial marketing campaigns and control their relationship with their supply chain, aligned also with the previously mentioned activities, generate the firm a positive image with regards to CSR towards their stakeholders.
CRITICAL COMMENTARY
CSR is a strategy to gain benefits that can give an added advantage over companies, and McDonald’s has improved their corporation as a whole in response to Corporate Social Responsibility (CSR).
Mcdonald’s has made it their priority to invest in CSR starting with their main priority in the company being their Employees. They make it a priority to make sure their employees are well taken care of because they believe that the right skills and abilities and workers are the reason behind the company’s success. Strategic management researchers have asserted that CSR can provide opportunities for innovations to the big corporations—many companies like Mc. Donald, for example, uses CSR to boost their company and create a win-win compel for both business owners and customers to create value for society.
In today’s times, CSR isn’t looked at as a boost indicator but instead a requirement for the company in the eyes of the stakeholders due to the competition. Many corporations need help with integrating CSR into their companies because they only want to adopt it into their companies. One challenge seen in CSR is the food sector having a high impact on human and physical resources. Many people have strong views on what they eat which makes them very specific on the food choices they choose. This makes companies very precise in the production of raw materials and environmental products they use.
This relates to the teachings of Strategic management in how to compete for advantage. In competitive advantage, managers take their quest when competing in a single market to formulate an appropriate business strategy. Managers use the “who, what, why, and how questions of completion. This strategy is created with the CSR strategy of bringing in more revenue to the companies. At the firm level performance is determined by the value and cost positions relative to competitors. Mcdonald’s has been studied to have the best CSR strategy that was well thought out. McDonald’s customers weren’t happy with the company and were facing criticism for the unhealthy food the company served. With this criticism and feedback, McDonald’s changed stereotypes and included more to their menu to accommodate healthier options like salads, wraps, smoothies, and fruit. McDonald’s worrying about the brand image is an important factor in competitive advantage because they still have competition with other corporations at the end of the day. However, they are continuously working to improve, as seen in the article.
CONCLUSIONS & RECOMMENDATIONS
In essence, there are some takeaways that should be remembered, like:
McDonald's Emphasis on Corporate Social Responsibility, the core topic of the article. In which is highlighted the firm’s commitment to this practice as a strategic initiative and the relevance of its incorporation into its business model, focusing on various stakeholders such as employees, consumers, communities, and the environment.
The stakeholder-Centric Approach designed to address the needs and expectations of different stakeholders, that go from providing job opportunities for unskilled workers to ensuring food quality and engaging in charitable activities. In essence, McDonald's aims to create a positive impact on society.
It is also relevant to mention the importance of strategic integration due to the relevance that CSR has not only as a means to enhance McDonald’s image but also to contribute to innovation, employee satisfaction, and overall business success.
Finally, the adaptation to the social force of the company’s external environment by continuously engaging in following consumer preferences changes: McDonald's strategic response to criticism about unhealthy food choices demonstrates its ability to adapt to changing consumer preferences. The inclusion of healthier options in the menu aligns with the growing demand for nutritious and diverse food choices.
Moreover, as final recommendations we aimed to highlight the importance of continuous improvement, transparency and communication, collaboration and partnerships, innovation in sustainable practices, employee development and consumer engagement as drivers of any current strategy, and specially for a company of the size and impact of the referred one. In essence, McDonald's should build on its current CSR foundation, embracing it not just as a strategic necessity but as a core value ingrained in the company's culture, contributing to both its society and brand.
REFERENCES
Gheribi, E. (2017). THE ACTIVITIES OF FOODSERVICE COMPANIES IN THE AREA OF CORPORATE SOCIAL RESPONSIBILITY – ON THE EXAMPLE OF INTERNATIONAL FAST FOOD CHAIN. Journal of Positive Management, 8(1), Article 1. https://doi.org/10.12775/JPM.2017.005
What Is Corporate Social Responsibility (CSR)? (n.d.). Business News Daily. Retrieved December 10, 2023, from https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html