McDonalds Case Study

People have become more aware that their actions have an effect on the present and future environmental world. The method of preserving current resources to ensure they do not become extinct or permanently damaged is called sustainability. Sustainability has gained importance as consumers have expressed their growing concerns about the future of the planet.

McDonald’s focus in this century has moved towards maintaining the welfare of all living and breathing things. Today and in the past, McDonald’s holds high values when it comes to the three main functions of operation: owner/operator, employees, and suppliers. Now more than ever, McDonald’s realizes the importance of sustainability in all functions of operation. Each division contributes to the company’s success and if one does not withhold to the standards there is an unbalance within the organization. With the movement towards sustainability, McDonald’s must factor this into the equation of the operations.

Major Issues:

1. Sustainability

2. Supply Chain

a. How to prioritize sustainability relative to other supply chain goals

b. How should McDonald’s reconcile different sustainability expectations and priorities around the world with the understanding that local practices sometimes impact the global brand?

c. How should McDonald’s engage suppliers, activists, and other stakeholders in its sustainable supply chain efforts?

Minor Issues:

1. Environmental organizations using McDonalds as leverage to get what they want/their point across

2. Cost constraints

3. Gaining position in industry as a sustainability leader

How should McDonald’s engage suppliers, activists, and other stakeholders in its sustainable supply chain efforts?

As social, environmental, and animal welfare concerns of consumers grew so did the expectations that McDonald’s had for their suppliers meeting these same concerns. The suppliers of McDonald’s are an extension of the McDonald’s brand and they are expected to act within the same value system of McDonalds. McDonald’s goal was for their suppliers to care about their social, environmental, and animal welfare impacts in the world.

McDonald’s has sound intentions and values the constant improving of the impacts that their supply chain has on both social and environmental channels. In 1993, McDonald’s implemented a suppliers Code of Conduct to ensure ethical employment practices were being followed. By 2005 89% of the suppliers had signed to comply by the standards