Ethics and Sustainability: An Examination of McDonald's Practices

This essay examines the ethical and sustainability issues faced by McDonald's, a multinational fast-food corporation. The analysis covers various ethical concerns, including the company's corporate social responsibility (CSR) practices, environmental impact from waste management and sourcing, ...Read More

Running Head: ETHICS AND SUSTAINABILITY
Ethics and sustainability
Name
Institution

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Introduction
Although McDonald’s is a multinational company with big fame and strong sales
volume, various ethical issues associated with how it operates its business has been reported
in various media platforms recently (Williams, 2015). Irrespective of being one of the leading
fast food companies, some of the ethical issues associated with this company has adverse
impacts on its performance. Operating in different countries means ethical issue arising from
one of its branches may lead to serious impacts on the rest of the branches irrespective of
being in different countries.
Ethical issues
One of the recent ethical issue which has been trading recently is failing to consider
corporate social responsibility in its business operations. Business ethics do not permit
companies to only do whatever is necessary to make money but also to engage in activities
which contributes positively to the wellbeing of the society (Wright, 2011). Undertaking
activities which contributes to making the society live in unhealthy environment like
releasing harmful products to the environment is wrong.
Corporate social responsibility states that every company should provide safe working
condition and use manufacturing processes that do not contribute to environmental pollution
(Sharon, 2015). On its operations, this company has been having negative impact on the
environment in different ways like lack of proper waste management practices, using
products which are harmful to the environment like plastic papers among others.
This company purchases its meat from privatised farms established on the land where
a lush of rainforest reside. This means not only polluting the air, McDonald’s is also
destroying some of the resources which would play a role in cleaning it out (Keong, 2017).
The trees that are levelled plays a significant role than just cleaning the air and attracting

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rainfall. They also provide homes to very many animals that are likely killed or being made
homeless when the trees are torn down. Therefore, it is wrong to harm these tress because
doing away with them may lead various things like draught, soil erosion, killing of wild
animals among others.
Apart from corporate social responsibility, McDonald has also been associated with
unhealthy relationship with its stakeholders. Recently, various media platforms reported that
this company was not providing the required working condition and adhering to the human
rights (Keong, 2017). Some of the issues which led to improper relationship with its
stakeholders include failing to give employee benefits which are worth the job they provide,
giving little or no benefits, and forcing employees to undertake duties in unhealthy and
unsanitary conditions.
Other ethical issues which led to lack of proper relationship with employees
comprised of wage theft and mistreatment of pregnant women. Most of the media platforms
which exposed these issues said that employees in this company cannot live a normal life
under the working conditions they face (Christiana, 2014). It is wrong to mistreat people
who contribute to the success of any business and therefore the management should provide
the required measures to ensure these issues are addressed.
Reports indicated that the issue of treating employees unfairly and making them work
in bad working conditions happens in different countries especially the underdeveloped ones
and the third world countries. Abusing the rights of staff members is unethical and can make
the management to experience serious problems (Bernal, 2012). Making the company to stay
wealthy while leaving employees on a low wage or making them work on environment which
is not friendly is wrong. Employees plays a significant role in making an organization attain
its goals and therefore they should be treated as important assets.

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Other issue which traded in media platforms concerning ethical issues associated with
this company was selling expired food to its customers. Although this company stated that it
considers ensuring the food sold to consumers is of high quality and healthy, the reports
indicated that some of the customers had noticed that the food they bought from this
company was expired, or had hygienic issues (Bahr, 2015). For example, it sold chicken 90
minutes after they were cooked, which was a contravention of the organization’s 30 minute
rule.
McDonald’s staff was also associated with preparing and serving food which is not
hygienic. Engaging in such activities is unethical because it can make the customers to
develop serious health complications (Roxana, 2014). It is the responsibility of the
management to ensure its staff does what is right and values hygiene in all activities in order
to provide food which is safe for consumption. The company must enhance management and
strictly implement food safety standards to ensure the health of its consumers.
Effects
Upholding ethics in business operations is vital because it is among the factors which
contributes to positive reputation to an organization (Blake, 2016). The recent ethical issues
associated with McDonald can impact its success irrespective of being one of the leading
organizing in the hospitality industry in the world.
Not adhering with corporate social responsibility makes the public to develop negative
attitude towards the company because every person wants to be associated with companies
which consider preserving the environment and doing what is right for the wellbeing of the
society (Giorgio, 2013). Consumers also expect that companies are supposed to be more
environmentally and social responsible in operating their businesses and if this does not
happen according to their expectations, they switch their interest to other companies. This

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means to maintain customer loyalty, the management should consider operating the company
in a manner which contributes positively to the wellbeing of the society.
If McDonald does not show CSR commitment, it can experience long-term negative
effects on how it relates with the society, which in turn affect its brand image. When a
company brand image is negatively impacted, it fails to have strong competitive advantage
which in turn may make it to experience reduced sales and low profitability (Teodorina,
2014). Engaging in Environmental pollution activities is violation of law in most countries
and can make the company to end up paying huge fines.
Failing to provide good payment, safe working conditions and respecting the rights of
its employees is unethical and can lead to various adverse impacts to the company (Sarvaiya,
2014). First, it can make it to experience increased employee turnover which can lead to
increased expenses on hiring and training. This is because all employees wants to be
associated with companies which respect their rights, offer them safe working environment
and give them salaries which are worth the services they provide. If this does not happen,
they tend to seek jobs from companies which give them fair compensation.
Lack of valuing employees can also make the company to be subjected to legal actions
(Marianne, 2015). For example, in most of the countries where this company operates, there
are strict rules concerning minimum wage and offering good working conditions to
employees. If a company does not consider adhering to these rules, it may be subjected to
legal actions which can at times risk spending a lot of money in paying fines or even closure
of the company.
Regular strikes resulting from the manner in which this company treats its employees
also poses the risk of giving it bad reputation. This is because positive reputation comes from
not only production of quality goods or services but also from how the company relates to its

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stakeholder (Michael, 2010). When such strikes occur and reported in various media
platforms, people across the world sees how the company relates with its employees and end
up developing negative attitude towards it.
Selling expired food to customers is quite unethical and can make this company
experience reduced sales and low profitability because of change of customer loyalty (Lim,
2014). Selling of expired products or changing labels indicating the actual expiring date of
foodstuff can also make this company be forced by authorities to close down because of
putting human life at risk through making them consume products which have passed expiry
dates.
Selling expired food can also make McDonald to experience great impact on its
reputation because people like being associated with companies which value doing what is
right (Olsen, 2016). Selling food stuffs which have passed the expiry date can make
employees to switch their loyalty to other companies which provided similar products
because consumers like purchasing from companies which not only provide high quality
products but also products which are safe for consumption.
What can be done?
There are various actions which this company can take to address these ethical issues.
All multinational organisations including this company should have corporate social
responsibility strategy (Blake, 2016). McDonald’s management should ensure the business
model of this company is socially responsible and environmentally sustainable. Apart from
making profits, this company should be responsible for the totality of its influence on all
stakeholders. The stakeholders in this case can be employees, customers, business associates,
the government, investors, and the community.

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In order to avoid some of the ethical issues like underpayment and violation of the
rights of its employees, the company should work based on the law. In most of the countries
where this company operates, there are rules which direct organizations to give employees a
minimum wage of a particular percentage, ensure good working environment, good working
hours, fair benefits among others (Blake, 2016). The management should adhere to these
rules by ensuring all employees gets what is worth the services they provide. The
management should not only target on maximizing its profit but also on ensuring its
employees feel appreciated through better payments.
The company should also ensure it does not sell expired products to its consumers.
This can be through ensuring all products are checked before they are sold and proper labels
indicating expiry dates are properly shown on all products. Selling expired products can harm
customer interests and confidence, which can in turn make them to consider purchasing
similar products from other companies (Michael, 2010). The company should respect and
protect the rights and interests of its consumers, through ensuring they provide products
which are safe for consumption.
Providing strict rules concerning how to handle food stuffs which are not hygienic is
also another way of addressing ethical issues which arise from preparing and serving
contaminated to the consumers (Bahr, 2015). For example, the management can state in its
rules that any food associated with hygienic issues should be termed as waste. The company
can also address this issue through taking disciplinary actions on employees who do not
consider proper hygiene while preparing or serving food to its employees. Training
employees on various matters concerning how to enhance hygiene while handling food can
also play a significant role in assisting the company to address issues which arise from being
associated with lack of considering hygienic measures while preparing and serving food to
the customers.

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One of the strategies which McDonald can use to address its CSR issues is making all
employees understand that it is unethical to engage in activities which puts the lives of the
community at risk. The management should also come up with programs aimed at promoting
the wellbeing of the society like undertaking environmental conservation activities and
educating the society on the importance of living in health environment (Keong, 2017). using
material that are friendly to the environment can also play a role in avoiding ethical issues
which arise from lack of considering CSR in its operations.
Conclusion
Working based on business ethics is important and has various benefits to
organizations (Blake, 2016). McDonalds should ensure it prepares and serves health food, it
operates based on corporate social responsibility and values its employees through better
payments and provision of better working environment. Failing to operate based on ethics can
make this company experience a lot of problems. Some of them include facing legal actions,
negative reputation, spending a lot of money on fines, lack of customer loyalty which can
result to reduced sales, low profitability, among others. Some of the ways which McDonalds
can do to address some of the ethical issues include coming up with strict rules targeted on
making the company do what is right, training employees on the importance of upholding
ethics on its operations, working based on food safety regulations, participating and coming
up with programs aimed at promoting corporate social responsibility others.

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