McDonald's Corporate Governance: Board Structure, Scandals and Ethics

This presentation provides a comprehensive analysis of McDonald's corporate governance and ethical practices. It begins with an introduction to the company, including its founding, industry, and key statistics. The presentation then delves into McDonald's board structure, outlining the roles of top-level executives and the finance, marketing, and sales departments. A significant portion is dedicated to the scandals associated with the company, such as deforestation, packaging waste, and corporate governance issues, along with the environmental ethics involved. The presentation also maps out McDonald's stakeholders, including employees, customers, investors, communities, the government, trade unions, and suppliers. It explores the application of ASX guidelines, including the implementation of principles like the UN Global Compact and the code of conduct. The presentation further examines management information systems and decision-making approaches. It concludes with a review of McDonald's Corporate Social Responsibility (CSR) activities, referencing Carroll’s CSR Pyramid and highlighting food, people, and community practices. References are provided for further research.

Corporate
governance
and Ethics

Agend
a
• Introduction
•Board structure
•The Scandal
• Regulatory Process
•Stake holder s participation
•Decision making
•CSR activities

Company profile
Founded
Richard and Maurice
McDonalds, 1940
Headquarter
Chicago, Illinois,
United States
Industry
Fast Food Chain
Employees
1.9 million
Products and
services
Hamburgers, cheese
burgers, shakes,
French fries
Revenues
21.03 billion U.S
dollars., 2018
Citation: (McDonald 2015)

McDonalds board structure
Top level
executives
CEO
Chairman of
Board
Directors
CFO
Chief Restaurant
Officer COO
Senior Marketing
Manager
Senior Sales
Manager
Citation: (Fredendall and Hill 2016)

McDonalds board structure
Finance
Department
Finance
Country Head
Finance City/ State
head
Finance
manager
Accounts Manager
Citation: (McDonald's - Official
Global Corporate Website 2019).

McDonalds board structure
Marketing
Department
Marketing country
Head
Marketing city
head
Marketing
Manager
Marketing
Executives
Sales
Department
Sales Country
Head
Sales city head
Sales
executives
Sales Men
Citation: (Epstein 2018)

Scandals
•Causing
deforestation
• Packaging waste
•Corporate
Governance
invalidity
•Environmental
Ethics
Citation: (Velasquez and Hester 2015

Stakeholder map
Employees
Custome
rs
Investors
Communities
Citation: (Xu 2015)

Stakeholder map
The
government
Trade unions
Suppliers
Citation: (Laudon and Laudon 2016

1 .
I M P L E M E N T E D G U I D E L I N E S
•
T E N P R I N C I P L E S O F T H E U N I T E D N A T I O N S G L O B A L C O M P A C T
•
C O M M I T T E D T O T H E U N I T E D N A T I O N S D E C L A R A T I O N O F H U M A N R I G H T S
•
C O R E L A B O R S T A N D A R D S O F T H E I N T E R N A T I O N A L L A B O R O R G A N I Z A T I O N ( I L O )
2 .
C O D E O F C O N D U C T
•
C O N D U C T I N B U S I N E S S
•
C O N D U C T T O W A R D S C O L L E A G U E S A N D E M P L O Y E E S
•
C O N D U C T W I T H T H E S O C I E T Y
•
H A N D L I N G O F I N F O R M A T I O N
•
P R O T E C T O F C O M P A N Y P R O P E R T Y
•
I M P L E M E N T A T I O N A N D C O N T A C T S
Application of ASX
Citation: Asx.com.au 2019

Management information system and
decision making
It comprises of three
resources:
• Technology
•Information
•People (Bruhn 2013)

Decision making approach
•Administrative
approach
•Political approach
•Incremental or
classical approach
(Berger 2017)

Carroll’s CSR Pyramid
Citation: tutor2u 2019

Corporate Social Responsibility of McDonalds
• Food Practices
1. Ethical practices
2. Environmental Protection
3. Long-term Economic Viability
•People and community practices
•Ronald McDonald House
Charities (Lawrence and Weber
2014)

Conclusion
The company is making huge business by
providing the good quality service to the
customers and taking care of their employees.
The main aim of the company is to take care of
the customers and the employees. The
company is using various techniques and
methods for mitigating the issues faced by the
organization.

References
•McDonald, Malcolm. "Marketing accountability." Wiley Encyclopedia of
Management (2015): 1-8.
•Fredendall, L.D. and Hill, E., 2016. Basics of supply chain management. CRC
Press.
•McDonald's - Official Global Corporate Website (2019). McDonald's - Official
Global Corporate Website. [online] Corporate.mcdonalds.com. Available at:
https://corporate.mcdonalds.com/corpmcd.html [Accessed 3 Sep. 2019].
•Epstein, M.J., 2018. Making sustainability work: Best practices in managing
and measuring corporate social, environmental and economic impacts.
Routledge.
•Velasquez, M. and Hester, P.T., 2013. An analysis of multi-criteria decision
making methods. International Journal of Operations Research, 10(2), pp.56-66.

Reference
 Xu, Z., 2015. Uncertain multi-attribute decision making: Methods and applications. Springer.
 Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education India.
 Bruhn, S., 2013. Corporate Social Responsibility: A Case Study of Consumers’ Perception of
McDonald’s Use of CSR in Relation to Image & Reputation. Bachelors Degree, Aarhus University.
 Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public policy. Tata
McGraw-Hill Education.
 Zhu, L., Anagondahalli, D. and Zhang, A., 2017. Social media and culture in crisis communication:
McDonald’s and KFC crises management in China. Public Relations Review, 43(3), pp.487-492.
 Berger, A.A., 2017. Reading matter: Multidisciplinary perspectives on material culture. Routledge.
 tutor2u. (2019). Carroll's CSR Pyramid | Business | tutor2u. [online] Available at:
https://www.tutor2u.net/business/reference/carrolls-csr-pyramid [Accessed 11 Sep. 2019].
 Asx.com.au. (2019). Home - Australian Securities Exchange - ASX. [online] Available at:
https://www.asx.com.au/ [Accessed 11 Sep. 2019].

Thank You