MBALN703 - Corporate Social Responsibility: McDonald's Code of Conduct

This report provides a critical assessment of McDonald's Corporate Social Responsibility (CSR) report, examining the ethical environment in which the company operates and its impact on business behavior and performance. The analysis covers various aspects of sustainability, including nutrition and well-being, supply chain management, environmental responsibility, and employee development. It also delves into the importance of a code of conduct, emphasizing honesty, accountability, integrity, respect, and flexibility. The report highlights the dual role of managers in upholding ethical standards and ensuring their team's adherence to these principles. Furthermore, it acknowledges McDonald’s initiatives in community well-being, financial sustainability, and technological advancements. The report concludes that McDonald's actively fulfills its CSR responsibilities, positioning it as a leader in long-term business building and development.

Running head: CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
Corporate Social Responsibility and Code of Conduct
Name of the Student:
Name of the University:
Author Note:

1CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
Part A:
Corporate social responsibility involves the set of ethical responsibilities and duties
associated with each firm and the extent to which the firms follow a pattern of development and
growth while catering to the sustainability issues it is involved with (Anaf et al. 2017). Business
ethics forms a very important in the building and maintenance of long term customer and
stakeholder relations. The firms need to undertake a set of self regulatory rules in order to cater
to the requirements of the corporate social responsibility. The firms that cater to the needs of the
community where they operate in some way whether directly or indirectly, help in living up to
the corporate responsibilities. In the subsequent parts of the essay the corporate social
responsibility performed by McDonald’s is critically evaluated and discussed with respect to one
of its sustainability reports (Ross, Pandey, and Ross, 2015).
There are various parts to the sustainability report produced by McDonald’s. The
company working in the food industry has to cater to the responsibilities of many aspects of
sustainability. The major components of the sustainability report include nutrition and well
being, employee development, sustainable supply chain development, environmental
responsibility and responsibility in terms of community well being as a whole
(corporate.mcdonalds.com. 2018). The report brings to light the fact that maintaining
sustainability and well being of the clients as well as the employees is a heritage implicitly
present within the organization and borne by the organization as a part of the heritage. The
various aspects of the corporate social responsibility fulfilled by McDonald’s are discussed in
detail in the subsequent parts of the essay. That the process is completely tangible is ensured by
the organization working in different parts of the world using the stakeholder, customer and
employee relations. In other words, McDonald’s is one of the few organizations that inevitably

2CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
bring about good to the society and the community in which they operate by following the values
of honesty, integrity and fairness ardently and strongly.
In the context of providing services that cater to the needs of nutrition and health the firm
has reported to only increase the amount of fruits and vegetables used in almost all the happy
meals options and their salad content in the meals has also increased as a part of the extra meals
that they serve. Besides these among other initiatives taken by the firm to promote sustainability
in terms of health and nutrition the firm has added the options of offering yoghurt in Canada and
a few their countries of late. In other countries food items included in the menu include corn cups
and carrot sticks (corporate.mcdonalds.com. 2018). To make it easier and feasible for children,
McDonald’s has also introduced options of meals specialized and customized for children.
In the context o Supply Chain Management, the firm has taken steps to ensure that the
packaging and sourcing of all the raw food materials and other equipments are done in a process
that is environmentally viable and do not have any detrimental effects. It also takes care of the
fact that the packaging should be done in such a way that the fiber and other materials used for
packaging also mean no harm to the environment. In addition, to all these activities being carried
the viability of these as well as all other processes are carried out using the monitoring by a
Environmental Scorecard so that the extent to which such activities and environmentally viable
can be calculated and the base level can be maintained (corporate.mcdonalds.com. 2018). The
measures taken by the firm to ensure that none of the supply chains carry our practices that are
unsustainable are setting an example to the industry as a whole and ensuring that the industry
limit of all the food organizations is getting extended as a whole. For example, McDonald’s has
taken up the initiative of ensuring sustainable fish supply by ensuring that they are able to

3CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
identify and use some other species that are healthy and are of the quality and taste standard that
McDonald’s as a food outlet ensures.
Next comes the context of environmental responsibility in which McDonald’s as a firm
helps in reducing the extent to which the firm consumes energy in its different outlets and
restaurants across the world. The firm has in fact undertaken a program that helps all the
different outlets to measure the amount of energy conservation and energy consumption and
cater to levels of energy that should ideally be used. The energy related activities are also
regulated and maintained by this program (corporate.mcdonalds.com. 2018). Various changes
have also been incorporated into the system ranging from the replacement of LED lights and
solar window films by the installation of energy management panels. The restaurants operated by
McDonald’s have been reported to have been reducing energy costs by around 20% in the last
few years. Along with these attempts the firm has also installed enough energy efficient
equipments across all its branches in different parts of the world. In fact, the firm has also started
the initiative of imparting knowledge regarding energy consumption to its employees through
workshops and other interactive video sessions.
The next context of sustainability ensured by this firm in relation to the factor of
employee experience and increased opportunities for them. The firm in the last few years has
taken up initiatives to provide extensive training and development of its workforce and also
ensure that the number and extent of opportunities that they are exposed to is increasing
(corporate.mcdonalds.com. 2018). The various programs help them to impart education and
knowledge to the employees and also helps them to apply the same in their personal and
professional lives. The firm programs in the form of apprenticeships and diplomas which help
them climb up in the corporate field either within the same field or in other fields as well in

4CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
certain cases. Sometimes programs are specifically provided to managers to better their skill sets
and knowledge about the operations of the firm which further propel their career growth. This is
done in the form of vocational trainings. All these efforts by the firm have jointly helped in
increasing the extent of employability of the workers of McDonald’s as a whole. The firm has
also received numerous awards for being a very important driver of growth in the field of
women’s career development and their growth. Sometimes the firm even provides opportunities
that help the employees to secure positions in public or private schools so that they learn and
earn at the very same time.
Finally the firm provides the best services to the community and society where they sell
their products and services. The firm helps in providing greater outreach and well being towards
the community by extending volunteering and financial support to the needy
(corporate.mcdonalds.com. 2018). To proved a greater extent of help and impact the lives of
children and families in a bigger way, the firm leverages local and global resources. In this
context, the firm also ensures the safety and security of the employees and the staff along with
their families. The firm also donates in many ways and amounts to various associations that help
in disaster risk mitigation and aversion.
In fact according to (corporate.mcdonalds.com 2018), the annual reports produced by the
firm also suggest that the firm also undertakes measures to ensure that the financial proceedings
and methods implied by the firm are also sustainable and ensure equal benefits for the current as
well as the future generations. As a matter of fact, to ensure this, the firm reinvests portions of
the revenue generated to ensure developing and improving standards of operations and
marketing. Further the storage, handling and preparation of products using the latest means of
technology and smart products. In an attempt to reduce costs and ensure sustainability the firm

5CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
has recently taken up activities of partnering with firms that supply various raw materials or
services that help to manufacture processed equipments for the firm. The firms also compete in
the market using sustainable concepts of improving their standard and quality while also
increasing the choices and varieties available to the huge existing customer base across different
parts of the world. The firm also carries out and encourages widespread activities in the field of
research and development in the continents of Asia, United States and Europe. The report also
asserts that even though the returns in terms of returns from investment in customer experience
including investments in technology are not anticipated to be high, the firm still carries out
extensive investments in these fields as it will help in propelling long run growth and also steer
long run trust and relationship building.
Thus, to conclude it can be asserted that the firm adheres and caters to all its
responsibilities in the field of corporate social responsibility. The firm makes sure that it looks
into the aspects of health and nutrition, sustainable supply chain management, employee
engagement and capability development and also the context of developing means to provide the
best level of well being an improvement in the community that they operate in. McDonald’s is
thus a step ahead of most other rivals and competitors in the long run business building and
development.
Part B:
In almost all organizations operating in the corporate field the managers as well as the
employees operating under the managers are expected to maintain and adhere to a few rules and
regulations that form and define a legal and ethical code of conduct (Banks et al. 2016).
Adhering and catering to these codes and ethics allow the company as a whole to improve its

6CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
public image and increase its rank in terms of the target customer base or the market (Honig et
al. 2014). The major aspects or pillars of the code of ethics that should be followed are honesty,
accountability, integrity, respect and flexibility. These codes of conduct help in improving
scenario revolving g around fairness and equality in the organizations and also in shaping the
corporate personalities and attitudes of that section of employees that completely follow the foot-
steps of their managers (Garegnani, Merlotti and Russo 2015). This part of the essay brings to
light the dual responsibility that mangers have in employing and monitoring the habits and
professional features of the workers who are employed under them.
As a manager I find it absolutely important and necessary to focus on the various
responsibilities and address the same in a strategic manner. It is very important to stay positive
everyday and also be motivated in the face of challenges instead of becoming easily agitated and
irritated because of the existing turbulent situations (Formentini and Taticchi, 2016). For me it is
important to carry out proper distribution of responsibilities and look after the ethical codes of
conduct being followed at every level of hierarchy. As a manager it is also very important to
promote wider engagement of the employees and ensure their well being and safety. The entire
organization should work in terms of honesty, equality of every aspect of working, respect and
accountability. Aware of the situation of employees prone to copy my gait, my behavior and my
personality, I try to ensure that I behave in a way that speaks of respect and honor that each
employee working at a hierarchy above or below me deserve. It is also internally controlled and
maintained that there is gender equality all throughout the organization. I also try to set an
example of accountability by ensuring that I fulfill all my responsibilities and commitments with
full accuracy and on time. As a manger it is also very important to set an example as a leader.
This means that it becomes very important for me to handle a portion of assertiveness and a

7CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
portion of compassionateness together at the same time and simultaneously (Mittal and Dhar
2015). It becomes very important for me to play and abide by the same rules as that of the
employees working under me. In fact the roles and responsibilities of a manager especially in the
context of setting an example cannot be pointed out or stated in the form of a set of rules. The
personality and blend of different roles will help the managers to provide appropriate and good
examples at work (Hill, Jones and Schilling 2014). It is very important as a leader to portray the
challenges and the ways of dealing with those challenges in case the same challenges or
problems arise when the employees are promoted to the post of a manager. The role of managers
in the context of decision making and interpersonal goal achieving is actually complex and calls
for the managers to be patient and deal with unproductive and inefficient workers in a way that
encourages and motivates them. However, setting an example and monitoring based on my own
example is not enough and building a code of conduct for the employees working under me is
important and as a manager if I would have to develop a code of ethics then I would prescribe a
framework of codes which is described in detail in the subsequent parts of the essay. Leadership
is the process in which one is expected to set an example in terms of decision making skill
development, interpersonal skill development and informational skill development. I feel that
following and monitoring the codes prescribed below will help in the overall leadership sill
development of all employees not only in my organization but in any organization as a matter of
fact.
The company referred to in this case is a Healthcare firm by the name of Mercy and all
the measures and values mentioned in the Code of Conduct aim at achieving company growth
along with adherence to the fact that the patients are benefitted the most and that their needs are
placed ahead of anything else. The Code of Conduct that should essentially be followed by the

8CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
employees employed especially at the leadership level is one that caters to the vision, mission
and the values mentioned below:
Vision: The vision of the firm is to cater to the needs of the patients and provide them
with extended benefits while catering to the needs of growth and development
Mission: The mission of the firm will be to extend their services extensively in the
healthcare sector and reach out to a larger section of patients than the already existing set of
clients and customers.
Values Roles
Honesty The employees of the firm should understand
their roles and positions and also the set of
rules and regulations governing the position at
which they are employed. The employees
should also be fully aware of the vision and
mission of the firm and make sure that their
actions do not breach any of those values.
Dishonesty of various forms are often
punishable and even if not punishable harms
the firm and causes a range of issues that are
completely not called for.
Accountability As a manager it is also important for me to
monitor the productivities and the quality of
work for the employees and so the employees

9CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
should be responsible and accountable for their
actions and performance. This will carve them
into individuals that can set a good example as
a manager later on.
Respect The employees should be motivated and
energetic and have respect for the work that
they do, for the organization and also for the
employees working with them. They are not
expected to work like robots or like machines
who are scared of being their real self but are
expected to maintain certain manners and
personality traits that define their thought
process and professional and responsible
nature and set an example for the fellow
employees and other co-workers as well as for
the clients in certain cases. In other words, the
employees should behave in a way that they
would expect others to behave in with them.
Flexibility In most of the cases it is noticed that managers
do not entertain or help out the employees that
are not able to perform in the way or at the
level where they are expected to perform or
generate productivity along with quality level.

10CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
However, for me it is very important to ensure
that managers and workers working at the
subordinate levels are compassionate and
patient with the teams or employees working
under them. This will ensure that the
employees are able to push their own limits in
terms of capabilities, efficiencies and capacity
and also develop their level of stress
management.
In this particular aspect of codes of conduct,
the training and development activities
conducted within the firm also become very
important. To help enhance and promote the
ability of workers to improve their skills and
work in a flexible way, workshops and training
sessions should be exclusively conducted.
Additional initiatives should be taken by
employees at the leadership levels to monitor
the performance of the employees and suggest
them ways and methods and sometimes even
counseling which will help them to propel their
performance to higher levels and help in
achieving greater growth levels.

11CORPORATE SOCIAL RESPONSIBILITY AND CODE OF CONDUCT
Integrity The workers should be able to supervise and
lead their own work as well the team’s projects
while maintaining a high and esteemed level of
integrity. This may sound easy but is one of the
most difficult codes of conduct to adhere to.
This is so because the managers and other
leadership employees find it difficult to make
informed decision making and adhere to the
values of the firm at the same time. The goals
and objectives of the firm are also to be framed
in such a way that the values and the integrity
of the firm is maintained and not tampered
with.
The employees should follow the above prescribed rules and codes of conduct in order to
avoid any unforeseen circumstances or issues that may affect the company in a harmful way and
cause it to take steps that may be severe and cause loss to them.