Triple Bottom Line Analysis of McDonald's CSR Reporting

This essay analyzes McDonald's CSR reporting and its performance in terms of social, environmental, and economic responsibility using the triple bottom line framework.

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Essay
Introduction
The term triple bottom line (TBL) by John Elkington was introduced in between
1980s and 1990s that focuses on corporations having social, economic and environmental
goals. The CSR reporting of the firm not just added economic values, but also added societal
and environmental values. At the narrowest, triple bottom line -people, place and planet, is a
framework that aids in measuring corporate performance concerning social economic and
environmental parameters (Hammer & Pivo , 2016). This essay will use a case example of
one of the most popular fast food company, McDonald and discuss about firms’ CSR
reporting to analyse how they perform their business operations after considering social
responsibility.
Body
Corporate social responsibility initiatives incorporated in multinational organisations
have the capabilities to challenge unsustainable business practices along with making way for
strategies solutions for eliminating societal issues faced globally (Alhaddi, 2015). The CSR
analyses of McDonald states that the company is “being a socially responsible leader” and
every process involved in the company shows more awareness on CSR issues that makes
McDonald a well-known company for decades (Rowley & McMurtrey, 2016). However, it
can also be cited that the companies dealing in fast food industry usually shows risk towards
customers health like obesity, heart diseases and intake of harmful preservatives. This creates
an alarming situation for McDonalds as well especially in todays’ era when people are
showing more concern for consuming healthy and freshly cooked food. Moreover, CSR is
been among hot topics recently alongside environmental and sustainability related factors.
Since McDonalds can be associated with similar issues, this paper will examine on three

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critical perspective of triple bottom line and how the company deals with them responsibly
(McDonald's, 2014).
The social bottom line in TBL refers to those conducts that can provide benefits to
businesses along with enabling fair practice seen in human capital, labour and community.
This notion not only provide businesses with social values, but also enhances company’s
reputation in front of public (Alhaddi, 2015). McDonalds goals can be realised with its
statement “Quality Matter Most” which is been seen in all of its stores (Rowley &
McMurtrey, 2016). It can be argued that the company uses fast food to construct a new
hybrid discourse and strives to associate its food with social practice containing healthy food.
Also, the discourse added creates a “combined lifestyle” that may have negative affects while
showing social practice and promoting healthy living. Nevertheless, based upon consumers
comments regarding discourse in fast food operated by McDonalds, it is been seen that
company socially follows healthier products that might enable this discourse bring a social
change in people lifestyle. One example that shows McDonald’s social responsibility is
promoting farming methods for obtaining organic food for further food processing. The
company introduced many recreation facilities for children in many urban states along with
advocating healthy living by making children aware of benefits of sports activities. The
company also considers responsibility for availing healthier food supply options in its menu
at an affordable price (McDonald, 2014).
The environmental line in TBL concerns business practices that do not compromise
environmental resources required for future generation. This can be pertaining to efficient use
of resources, reduction of green house gases and minimising ecological foot prints (Alhaddi,
2015). McDonald’s not only strives to portray itself as an environmentally responsible
company, but also cares about health-related concerns of its customers, thus operating in
mixed discourse within fast food business (Bruhn, 2013). Nevertheless, the challenges are

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met by the company effectively and according to the recent sustainability reports of the
company, it can be said that McDonalds is planning its sustainability processes very
critically. For instance, the company implements technology and innovation in its core
business operation, including supply distribution so that biodiversity and deforestation is
avoided. The company also considers funding in Wildlife by building a sustainable sourcing
strategy that can help in reducing environmental impacts along with bringing employment
opportunity. The major projects to support environmental responsibility, McDonald’s
included enriched housing system that uses natural sources of energy thereby reducing
environmental impacts (Bruhn, 2013).
The economic line in TBL refers to those impacts of organisational practices that
effects economic system. It pertains capabilities of the economy like one of the systems in
CSR to survive and grow in future for supporting future generations (Jackson, Boswell, &
Davis, 2011). People nowadays are becoming environmentally conscious where shareholders
seek to see that businesses are being run in a sustainable manner. The conflicts between both
the thoughts results in bringing limited solution for enabling CSR. In McDonald’s case, the
company shows great effort by funding and supporting families whose children undergoes
treatment and have very limited resources to treat occupational illness (McDonald's, 2014).
Multinational company like McDonald’s demonstrates that company need not forego profits
for enabling CSR initiatives as the company operates more efficiently within its limited
budget and use of resources. By operating effectively, the savings are been invested upon
aimed projects like supplier’s sustainability that helps in gaining economic responsibility
objectives for McDonald’s. Another fine example of McDonald’s showing economic
concerns is its initiative towards launching sustainable farms in many countries it operates in.
Last but not the least, the multi-local operations feature of McDonalds clearly shows the
economic responsibility of the firm. The ground beef suppliers of the company present in

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many countries worldwide and due to concerted efforts seen. McDonald’s implements a
universal system that benefits local individual restaurants along with enabling flexibility to
shift processing systems depending upon the needs of chain restaurants as a whole (Rowley
& McMurtrey, 2016).
Conclusion
Like sustainability, TBL is been extensively focused in present literature that assists
researchers in analysing social, economic and environmental responsibility of the firms. The
above essay presented an overview of how TBL is used to make critical analysis of
organisation’s CSR and sustainability. The case analysis of McDonald’s reveals that the
reason behind the firm’s success over past 40 years is due to the concern shown towards
people-crew members, restaurant managers and corporate employees. Planet-showing
concern towards wildlife and green house gas reduction along with enhancing sustainable
farming methods. Profits- being transparent in business activities, providing stakeholders
with greater insight in core operations, employment opportunities and utmost use of available
resources by enabling waste management systems.

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References
Alhaddi, H., 2015. Triple Bottom Line and Sustainability: A Literature Review. Business and
Management Studies, 01(02), pp. 6-10.
Bruhn, S., 2013. Corporate Social Responsibility: A Case Study of Consumers’ Perception of
McDonald’s Use of CSR in Relation to Image & Reputation. [Online]
Available at: http://pure.au.dk/portal/files/54008781/Bachelor_Thesis.pdf
[Accessed 31 03 2019].
Hammer, J. & Pivo , G., 2016. The Triple Bottom Line and Sustainable Economic
Development Theory and Practice. Economic Development Quarterly, 31(01), pp. 25-36.
Jackson, A., Boswell, K. & Davis, D., 2011. Sustainability and Triple Bottom Line Reporting
– What is it all about?. International Journal of Business, Humanities and Technology,
01(03), pp. 55-59.
McDonald's, 2014. McDonald's Corporate Responsibility and Sustainability Reports.
[Online]
Available at:
https://mcdonalds.com.au/sites/mcdonalds.com.au/files/MCD_CRS_Complete.pdf
[Accessed 31 03 2019].
McDonald, S., 2014. Social responsibility clusters arising from social partnerships. Social
Responsibility Journal, 10(02), pp. 331-347.
Rowley, B. & McMurtrey, M. E., 2016. McDonald’s and the Triple Bottom Line: A Case
Study of Corporate Sustainability. Journal of Strategic Innovation and Sustainability, 11(01),
pp. 33-37.

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