Food Service Management and CSR Practices in McDonald's

This report discusses the importance of food service management and corporate social responsibility (CSR) practices in McDonald's. It analyzes ethical issues and practices in relation to CSR, and examines the impact of CSR practices on the restaurant. The report also identifies three areas of the business that need monitoring and provides recommendations to resolve challenges in those areas.

FOOD SERVICE
MANAGEMENT

Table of Contents
INTRODUCTION......................................................................................................................3
LO3.........................................................................................................................................3
Introduction to restaurant........................................................................................................3
Explaining CSR......................................................................................................................3
Critically analyse three ethical issues.....................................................................................4
Critically analyse three ethical practices that are carried out in McDonald's in relation to
the issues raised previously....................................................................................................5
Critically analyse how the CSR practices impact on the restaurant.......................................5
LO4.........................................................................................................................................6
Explain at least 3 areas of the business you want to monitor and why you want to monitor
them........................................................................................................................................6
Explain how you want to monitor the 3 areas of the business using a range of performance
review techniques...................................................................................................................7
Provide justified recommendations to resolve the challenges within the three areas of the
business monitored.................................................................................................................8
CONCLUSION..........................................................................................................................9
REFERENCES.........................................................................................................................10

INTRODUCTION
Food service management is an activity of keeping the satisfaction level of customers
high and with lower cost of operations. Food service Management use the company and their
interpersonal skills for rendering high quality services and curated experiences to the
customers (Attia and Salama, 2018). Food service Management involves where activities
such as controlling food keeping the business profitable, collecting regular feedbacks and
opinions of customers for efficient services and personalize experiences. Food Service
Management is basically a department in an hospitality organisation, the duties and
responsibilities there is from business to business according to their size nature and scope of
the entity. The report consist thorough discussion on ethical issues and practices of Corporate
Social Responsibilities. Along with identifying its impact on business operation and
organisation itself. Moreover, three business areas are monitored by different tools and
techniques and recommendations are provided at the end of the report in table format.
LO3
Introduction to restaurant
The report is developed on McDonald's which is an American fast food restaurant
chain founded in 1940 by Richard and Maurice McDonald’s. This is the world's largest
restaurant chain serving over 69 million customers on a daily basis from around hundred
countries in the world. McDonald’s serves to worldwide population with across 37,855
outlets. The company is the second largest private employer around the globe and first in
hospitality industry. McDonald's is a fast food serving restaurant offering hamburger in
which it has specialisation along with it serves other side dishes such as French fries, soft
drinks, milkshake, salads, coffee, desserts, breakfast meal and wraps. McDonald’s is
expanded and established in worldwide locations acquiring different geographical markets
but its headquarters are in Chicago, U.S.
Explaining CSR
The 1950's is stated as the beginning of the modern era of CSR commonly stands for
SR Social Responsibility. CSR stands for Corporate Social Responsibility which a self
regulating business model is enabling the organisation to be socially accountable to the
stakeholders and to the general public. Social responsibility is a practice which is also known
as corporate citizenship and basically an activity which is conducted with a sense of

responsibility towards the society and environment in which company is having their
operations. The engagement of company in CSR activities and practising CSR means that in
ordinary course of business entities operating in such a manner that enhance the society and
environment instead of negatively affecting it. CSR is a broad concept which can be
undertaken in many forms according to the company and the industry in which the
organisation is operating. CSR is an essential activity for both the community and the
organisation as the Goodwill of the company rises along with profit in the environment and
contributing towards the society. It is the requirement of CSR that the entity is assessing it
stakeholders, such as employees, shareholders,environment, customers and many other and
evaluating their responsibilities to them in favour of the world and the society.
Critically analyse three ethical issues
Corporate social responsibility is an important part of business ethics as is normally
responsible for treating their employees well and render best experiences and satisfaction to
the customers but also for keeping up with the society as well (Christensen, Jablonski and
O'Hara, 2019). Some of the basic CSR activities involves minimising environmental impact
of the operations, reducing wastage of resources and many more. But the problem with
responsibility and business ethics occurs when the business objectives and ethical
responsibilities are not aligned and integrated. The three ethical issues which are very
common for organisations operating in the marketplace are as follows:
 About Manufacturing Process (Child/Slave Labour)- In recent years, this is the
most common ethical issue which is being raise in relation with Corporate Social
Responsibility. A businesses social responsibilities always clashes with their ethical
requirements and necessities (Wen and et. al., 2018). Entities are legally bound to
reduce shareholders costs and socially chained to minimise social damages. But most
often involves in child and slave labour and unethical business practice. This is
because it is easy to acquire cheap labour form regions of the world where resource
like money is very less.
 Financial Dealings (Suppliers)- The breach of ethical regulations and requirement of
an entity also, conducted while dealing with suppliers and making financial dealings.
Businesses make unethical dealing with suppliers which is beneficial for both the
parties. For instance, non-billed transactions takes place for saving taxes on purchase
and sales hindering the balance in governmental accounts and financials.

 Influence on Local Communities and Government- Another ethical issues which
raises the concerns over transparency of businesses and action they undertake is the
influence of company's operations over local communities and government. In many
regions of the world the most commonly affected units from business actions are the
society and communities. People have to move from their places as organisations
overtake their land and develop their operations. Moreover, it is considered as
Corporate Social Responsibility ethical issue faced because of lack of interest
regulations developed by government and other constitutional bodies.
Critically analyse three ethical practices that are carried out in McDonald's in relation to the
issues raised previously.
McDonald's restaurant is a multinational chain of food joints operating in several
regions and location of the world. The food service management department of McDonald is
responsible for maintaining and fulfilling CSR activities. There are several actions taken by
McDonald’s managers and executive for maintaining CSR in relation to concern with issues
raised above (Kibler and et. al., 2018).
 Clear Code of Ethics- McDonald's as a corporation deals in numerous competitive
markets which creates the need for entity to work ethically and with appropriate code
of conduct. Therefore, in order to keep up with child and slave labour ethical issue
entity have clear code of conduct developed which is followed by every franchiser.
 Work with various Charities- As its CSR McDonald's delivers several benefits to
the society and for looking over their return needs to be made for the local
communities, organisation engages in with several charities for welfare and well-
being of communities.
 Legal and Regulatory Compliance- Food industry of McDonald's is criticized from
past many years in terms of ingredients used in their offerings or products.
Environmental scorecard of McDonald's suppliers have seen huge reduce in water,
energy, air and waste impact. As well as sustainable fish supplies are made since 2007
almost 90% of fish supplies originated for sustainable means and resources (Petljak
and et. al., 2018).
Critically analyse how the CSR practices impact on the restaurant.
From the above evaluation and analysis of different ethical issues related to CSR in
general and the actions taken by McDonald’s for these ethical issues it can be summarised

that company is impacted in positive manners due to the activities undertakes. McDonald’s is
well aware of its social responsibilities towards the environment and to the society in which it
is operating. Company makes its laws according to the social responsibilities in order to fulfil
the motive of the organisation and also accomplishing its social responsibilities. Specific
results and impacts of CSR over McDonald's operations and business are:
 Cost Reductions and Improving Reputation of organisation- Operational
efficiencies can be attained once all the operations and business activities are
streamlined, through sustainability and energy saving means. McDonald's involved in
such action and CSR practices ensuring all the requirements of restaurants are being
fulfilled by sustainable actions and resources and with no wastage. Supply chain was
changed into low wastage lines and raw material like fish was being generated
through sustainable processes reducing cost and improving goodwill that is
reputation of business entity in competitive market of hospitality and sustainability of
entity (Okumus, Koseoglu and Ma, 2018).
LO4
Explain at least 3 areas of the business you want to monitor and why you want to monitor
them.
In recent years the business of McDonald's have faced many challenges and problems
due to various reasons the most potential is increasing competitors and rapidly evolving
marketplace and customer preferences. Three areas of McDonald's business are being
monitored which are mentioned below with proper reasoning.
 Food Safety and Quality- Amongst three major areas those needs monitoring and
supervision in McDonald's first is food safety and quality. This is because since the
start of operations restaurants are being accused of making use of unhealthy
ingredients and raw materials.
 Staff Turnover- The next essential segment which requires monitoring and
evaluation is workforce and employee retention. McDonald's management knows the
importance of workforce and labour. The company is well aware with the fact of
retention of experts for development and betterment of business and most importantly
for growth and success (Martin-Rios and et. al., 2018). Also, for maintaining
consistency in the labour-force it is essential to overlook and reduce staff turnover.

 Customer Satisfaction- Next primal area for monitoring and evaluation is of
customer satisfaction as McDonald's deals in service sector and hospitality industry
which implies that customer satisfaction is the key for success, growth and
profitability of entity. Consumers satisfaction is the main aim of McDonald's for
keeping up with their requirements and making sure that needs and preferences of
people are fulfilled in the exact manner they wish.
Explain how you want to monitor the 3 areas of the business using a range of performance
review techniques.
Performance review techniques are basically some systematic processes that evaluates
and analysing the performance of the business in terms of productivity with the respect of
predetermined objectives and aims. Few performance review techniques are used in respect
of monitoring the above-mentioned business areas of McDonald’s as well. These techniques
and methods are elaborated below in relation with the restaurants expectations and abilities.
 Food Safety Audits- This is the most prominent and commonly used tool by
restaurants in United Kingdom for monitoring and evaluating their performances.
McDonald's can make use of this performance evaluation process for measuring and
maintaining food quality and safety standards (Salihoglu and et. al., 2018).
 Staff Feedbacks- Staff turnover was one major area on which concerns were shown
in above section about how it is important to monitor it. In order to review the
performance of McDonald's in relation with retaining their workforce and gaining
competitive advantage, engaging them in operations and taking their feedbacks will
resolve the issue if excess staff turnover. Moreover, McDonald's can improve its
retention ratio along with expertise and talent management (De Boeck and et. al.,
2019).
 Customer Satisfaction Feedbacks- Another concerning area is of customer
satisfaction and the most influencing one. For this McDonald's can make initiative of
taking feedbacks form customers covering several aspects such as their performances,
product and service standards and many more. Through these feedbacks outcomes can
be generated about improvement made and other lacking area which requires
improvisation.

Provide justified recommendations to resolve the challenges within the three areas of the
business monitored.
OBJECTIVES ACTIONS DEADLINE RESPONSIBILITY MONITORING
TOOL
Food Safety
and Quality: To
ensure all safety
and quality
measures are
followed in
restaurants.
Developing
respective
polices in
compliance
with laws and
regulations.
In next 8-10
Months.
Making sure that all
restaurants are
following common
policies developed in
relation with food
quality and safety.
Mystery Guest
Staff Turnover:
To ensure staff I
retained and the
staff turnover
ratio is reduced
by 15%.
Rendering
training and
development
along with
better
development
opportunities
(Chiadamron
g and Tham,
2018).
In next 1 Year. Conducting
evaluation and
keeping the staff
knowledge updated
according to the
current market
trends.
Staff evaluation
of services
Customer
Satisfaction: To
increase
customer base
by 5-6% in those
regions where
goodwill is
lowering and
customers are
shifting to other
By
developing
better
relations with
consumers
and most
importantly
by keeping
them
informed
In next 6
Months.
Making sure that all
CSR policies and
sustainable means of
procuring best quality
raw material and
ingredients are
followed and aligned
with external
environmental
Client and Guest
evaluation

restaurant. about the
raw material
used in
preparation
process.
policies.
CONCLUSION
The above report is based on food service management systems and CSR activities of
hospitality organisation operating in the marketplace. Corporate social responsibility is an
essential practice which is undertaken by all different sorts of organisations present in
different industries. The food Service management department of companies are responsible
for taking care of its CSR activities and enhancing the profitability. Various ethical issues are
evaluated and discussed in the report for gaining the insight of the importance of working
effectively and fulfilling social responsibility of organisation.

REFERENCES
Books and Journals
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Petljak, K. and et. al., 2018. Green supply chain management in food retailing: survey-based
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