Business Ethics: McDonald's CSR and Code of Conduct Analysis

This report provides a comprehensive analysis of McDonald's ethical practices and Corporate Social Responsibility (CSR) initiatives. It begins with an overview of McDonald's and its ethical environment, followed by a critical examination of its CSR activities, including efforts to reduce greenhouse gas emissions, promote environmental sustainability, and contribute to education. The report also explores the concept of a code of conduct, using the National Milling Company of Guyana Inc. as a case study, and identifies ethical issues relevant to modern businesses, such as misuse of company time, violation of internet policies, and employee harassment. The analysis draws upon a variety of academic sources to support its claims and offers a thorough assessment of McDonald's ethical standing and CSR performance. The report highlights the importance of ethical considerations in business operations and provides a framework for understanding how companies can integrate CSR into their strategies.

Business Ethics

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
McDonald’s overview and its ethical environment.....................................................................1
CRITICALLY ANALYZING THE CSR ACTIVITIES OF MCDONALD’S...............................2
Reduction in greenhouse gas emissions......................................................................................2
Environmental sustainability.......................................................................................................3
CSR in the field of education.......................................................................................................4
PART B...........................................................................................................................................5
Overview of the company............................................................................................................5
The concept of a code of conduct................................................................................................5
DEVELOPING A CODE OF CONDUCT......................................................................................6
Be honest with clients..................................................................................................................6
Misuse of company time..............................................................................................................6
Violation of the internet policy of the company..........................................................................7
Harassment of employees............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business ethics refers to set of norms, social rules and policies that provides the right
direction to business by differentiating between right and wrong practices (De George, 2011).
The business ethics assists management to take the right decision in context of different business
activities including supply chain, corporate social responsibility, employment and general
business operation (Weiss, 2014). In this context, the present report critically analyzes the ethical
practices adopted by the food brand McDonald’s through analyzing its Corporate Social
Responsibilities (CSR) with the deep evaluation of the CSR report. Further, for this purpose,
different CSR activities of McDonald's have been identified with critical evaluation of different
practices including reduction in greenhouse gas emissions, environmental sustainability, CSR in
education, etc. Besides this, , a code of conduct has been explained by considering the National
milling company of Guyana Inc. In this regard, ethical issues faced by modern businesses in term
of misuse of company’s time, violation of internet policy of company and harassment of
employees, etc. are identified and analyzed.
PART A
McDonald’s overview and its ethical environment
McDonald’s is an American company which deals in fast food products. The company is
operating the business from last 78 years in the United States and several other nations.
McDonald's has been covered a common area of 100 countries along with 36,900 outlets as per
the report of 2016.Moreover, the company is dealing with a wide variety of products such as
Chicken, Hamburgers, Soft drinks, Coffee, Desserts and Breakfast, etc. With its constant efforts
of being successful international business, the revenue of the business by the financial year 2017
is around $22.820 billion (McDonald’s, 2018). Further, McDonald’s employs approximate
2,35,000 who assists business in delivering quality products and services to number of buyers.
Being international business, company is involved in several CSR initiatives through which
interest of different stakeholders is considered. Also, the sustainability initiatives of the business
facilitate in increasing brand image and competitive edge of the business (McDonald’s, 2018).
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CRITICALLY ANALYZING THE CSR ACTIVITIES OF MCDONALD’S
McDonald’s performs different CSR activities to maintain the ethical environment at
global level. Further, the company is focused towards different issues including reduction in
greenhouse emissions, sustainable environment and CSR in education, etc. which helps in
increasing its sustainability (Scribed Inc., 2018; McDonald’s, 2015).
Reduction in greenhouse gas emissions
CSR activities are helpful to develop a sustainable environment through valuing the
stakeholders. According to the CSR report of 2017, it has been assessed that McDonald’s is
focusing to reduce the greenhouse gas emissions occurred through transportation and
manufacturing restaurants. In this context, company targets to reduce CO2 emission by 36% by
the end of the year 2030 due to global changes in climate. Further, the company has chosen to
reduce the rate of emissions intensity to 31% towards suppliers by 2030 (CSRwire, 2018). In this
context, Frenken and Kiersch (2011) asserted that a reduction in greenhouse emission has
significant contribution to improve environmental performance through the protection of
biodiversity as well as freshwater resources, etc. It would be helpful for corporation to ensure
safety of environment and accordingly meet the expectations of different stakeholders including
general public, government, suppliers and customers. In this context, Zhang et al. (2012) argued
that greenhouse emission is not an easy task for the companies even if they are operating at
international level because, for the upgradation, organizations require skilled and cooperative
workers to expand the work culture and sustainable environment.
The pressure of protecting environment is increasing for McDonald’s because of
increasing population and awareness of customers towards the environmental factors. On the
contrary, Watson et al. (2011) asserted that the reduction in greenhouse gas emission would
provide a systematic environmental protection which also helps in recycling the waste and
promote the healthy environment. Moreover, it can be suitable for companies to maintain a
sustainable as well as equal food quality at all global level stores. By considering this, the
concept of reduction in greenhouse gas emissions will grow the targets and business of
McDonald's without interruption of emissions in the food processor. Further, to meet the climatic
challenges and minimize the ratio of emissions, McDonald's is focusing on plantation around 3.8
billion trees on the sides of the road. Furthermore, for controlling the carbons, the company is
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promoting the renewal of energy resources as well as use the resources efficiently and
minimization of waste by recycling (CSRwire, 2018). Therefore, reduction in greenhouse gas
emissions of McDonald’s offers the sustainable environment in the organization which would
also be supportive in obtaining the competitive edge of the business.
Environmental sustainability
McDonald's is continuously emphasizing on environmental sustainability through
improving social responsibility along with environmental practices. It is helpful to achieve the
long-term objectives and sustainability in the company; hence, it has benefits for the respective
company as well as the communities in which the McDonald’s serves (McDonald’s Corporation,
2018.). In this context, Ageron, Gunasekaran and Spalanzani (2012) stated that sustainable
business had become a new aspect for the food industry in the current environment because the
government has provided important surveillance to social responsibility. Moreover, attention has
also been given to profit and non-profit organizations for the environmental and sustainable
supply chain management. Similarly, Soebandrija (2017) asserted that sustainable industrial
system and green innovations have the central participation in sustainability as well as
improvement of the company. This indicates that environmental sustainability is highly required
in the cotemporary business environment through which corporation ensure to increase the
competitive edge by meeting the expectations of different stakeholders.
Sustainability creates a perspective for the company to develop competitive advantages
and market sustainability for the organization. However, Hueting (2010) argued that the
maintenance of viability demanded a considerable amount of expenses for the implementation of
innovative systems, machinery and equipment for the green aspects of the company. However, it
develops the long-term benefits for the company in the form of loyal customers, stakeholders and
sustainable environment in the global market. Similarly, McDonald’s treat its customers in the
right manner by meeting their requirement related to quality products and services. Thus, it
reflects that environmental sustainability generates the chances of competitiveness in the
international market and maintains better relations with suppliers by keeping sustainable supply
chain management as well as green innovations.
McDonald’s has announced a CSR and sustainable plan for the upcoming years of 2020
by including sustainable beef production and emphasizing on purchase of beef from sustainable
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sources only. Also, company focuses on the fiber-based packaging merely from the certified
sources of McDonald’s which facilitates to improve the quality and sustainability in the supply
chain (CSRwire, 2018). In this context, Wright and Bennett (2011) stated that CSR activities
create the positive image of the business at the local as well as national level as it shows the
contribution of the business in the social development. By retaining a close-relations, the
company would be able to produce the conventional products of customers and earn more profits
by focusing on the quality standards of the business. However, Asongu (2007) argued that it is
not necessary to perform the CSR activities for the growth of the company; hence, growth can be
achieved through best suitable solutions and planning for the business of free market system. On
the contrary, Du, Bhattacharya and Sen (2010) asserted in favor of CSR, that it offers an
opportunity to the business-like long term as well as enlightened self-interest to remains engaged
with social responsibility. It indicates that CSR activities has a participation in the success of the
business and creates a self and collaborative interest in the company. Moreover, buyers,
employees and stakeholders can also be benefited because it focuses on active packaging, quality
measurements and suitable solutions for the sustainability of the business.
CSR in the field of education
McDonald's has decided to give a scholarship to the Hispanic American commitment to
educational resources to help the Hispanic students. The company offers $1,00,000 as a
scholarship for the further study of helpless students because they are capable of reverting the
better outcomes to the education industry. Here, McDonald's is being socially responsible by
contributing towards growth of education sector and shaping the positive mind set of different
stakeholders towards the business (CSRwire, 2018). In this regard, Nijhof and Jeurissen (2010)
mentioned that CSR activities affect the employee’s performance, level of job satisfaction and
retention rate because CSR develops an identity of the company in the international market and
has a positive impact on the success of a business. Similarly, Saeidi et al. (2015) stated that CSR
is helpful to generate more profits from the public by sacrificing some other benefits. It has been
evidenced in the McDonald’s case because with its constant contribution towards the
environment company is continuously operating across different nations (McDonald’s
Corporation, 2018). Also, the customers have keen interest towards the specific food range of the
McDonald’s and liking the brand to a great extent. Additionally, Gössling and Vocht (2007)
asserted that in the absence of CSR functionalities, the organizations could not apply the strict
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measures for the business because these businesses are not obliged to be ethical. In this context,
to maintain collaboration with ethical standards, McDonald's dealing with the social connections
by offering different types of student’s scholarships. On the other hand, conducting a charity
program in honor of the moms at international Mother’s Day through celebrity friends of Ronald
McDonald’s charity house and developing the business facilitates corporation to be social and
ethical responsible (CSRwire, 2018). Hence, it shows that McDonald’s engaged in a variety of
CSR activities to attract the customers, stakeholders and other people towards the company
because CSR is an additional activity to show the work culture of the organization. Further, CSR
develops a strong belief in the consumers that particular company is reliable and valuable to
derive the quality services.
PART B
Overview of the company
National milling company of Guyana Inc. is a food and beverages company which is
located at water street, Agricola, Georgetown, Guyana. The company is a subsidiary of Seaboard
Corporation which is a US-based organization (National milling company of Guyana Inc., 2017).
As a designation of general manager, the manager has been worked in Guyana Inc. for the last
three years along with possessing a double role in the organization. Moreover, the first role was
that the manager behaves ethically and shape the employee's behavior realistically. On the other
hand, the manager was responsible for employee’s deed that what they all are doing, all things
are suitable for the organization and these scenarios have been created by introducing a code of
conduct to workers. Therefore, the respective company has been selected for the development of
an ethical environment and considering the code of conduct to influence the workforce for
ethical activities.
The concept of a code of conduct
Code of conduct is a set of rules and regulations which shape the specific type of
behaviour among employees associated with the business. It may cover social responsibilities,
practices, norms and religious activities for an individual or a group of people as well as
organizations (Erwin, 2011). In this context, a code of conduct includes the regulations of the
company in use of information, assets, way of dealing with shareholders of the organization. For
instance, Coca-Cola company has incorporated the core values in the code of conduct as
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disciplinary actions, the collaboration of additional resources for the welfare of employees. By
considering this, Coca-Cola company has been developed the business through a strong
commitment to business standards as well as ethical codes (Coca-Cola HBC’s company, 2018).
DEVELOPING A CODE OF CONDUCT
As a general manager of National milling company of Guyana Inc., a systematic and
understandable code of conduct has been prepared for the involvement and to influence the
employees by considering the ethical issues of modern workplaces. At this juncture, the double
role of manager has been explained as follows-
Be honest with clients
The manager would strictly follow the norms that the employees of the company will
remain honest towards the clients so as to create the trustworthy relationship. In this context, the
National milling company of Guyana Inc. faces some ethical issues regarding the customers due
to financial position. For instance, if a client of the respective company is dealing with the
financial crisis; however, the client is procuring a specific range of products from Guyana Inc. at
a higher rate. Nonetheless, the client has an opportunity to buy the products from other
subsidiaries in the competitive marketplace (Crane and Matten, 2016). In this regard, the
manager of the company has a right to inform the client regarding the price scenario to maintain
strong relations by considering the ethical behavior. Here, the manager has a chance to breach
the code of conduct for own personal greed but his honesty and compliance of code of conduct
would be effective to ensure that workforce get the right direction. Also, the continuous
assessment of employees’ work and data collected from other customers would be helpful in
getting the insight regarding the attitude of being ethically responsible employees.
Misuse of company time
In modern workplaces, it has been seen that most of the employees in the organizations
misuse the company time in other circumstances and personal working which shows an unethical
behavior. By keeping in mind this issue, the manager of Guyana Inc. can set standards regarding
the punishment for such employees. However, they will be communicated regarding the
organizational code of conduct. Moreover, the additional training can be provided in that
particular period so that vacant time can be utilized as well as unethical behavior cannot take
place in the employees of the company (Tota and Shehu, 2012). In this context, manager of
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National mining company of Guyana Inc. can play a role of ethical behavior in the organization
by engaging self in the different task so that extra vacant time can be used in the completion of
further business-related activities instead of personal greed. However, workers being ethical at
workplace would be rewarded and their efforts will be communicated in the organization. This
facilitates to derive the valid outcome for the corporation. In this regard, Mason (2017) stated
that code of conduct sets the boundary for workforce to be ethical or for misconduct.. Hence, the
manager of a respective company can deal with this ethical issues by stating a policy that if any
employees have been found to engage with unethical behavior and personal business activities
during the company timing then that employee would be considered as a victim for the company
and can be retrenched from the company on the spot.
Violation of the internet policy of the company
In the current business era, violation of internet policy of companies is a significant
unethical aspect which tends to affect the business performance to a great extent. The company
allows the employees to use the internet facilities for the business purpose activities; however,
the employees use them to accessing the Facebook, personal mail account and other social media
sites which is unethical behavior since it increases the chances of data theft (Siponen and Vance,
2010). In this regard, Umphress, Bingham and Mitchell (2010) asserted that unethical behavior
in the organization degrades the competitive edge of the business by offering an opportunity for
competitors to use the theft data of the business. By considering this issue, the manager of
National milling company of Guyana Inc. can introduce an internet policy related to code of
conduct that internet access would be given only for the business information and transactions.
No one would be allowed to use the internet for personalization; hence, if an employee is found
using the internet facilities for the personal use then he may be punished or debarred.
Harassment of employees
Most of the organizations in modern businesses are dealing with the unethical behavior as
harassment of lower-level employees by superiors and harassing the female employees by male
candidates which indicates the ethically wrong. However, affected people try to ignore the issue
because of fear of losing the job. . Also, they get warning from their senior workers which tends
to affect their confidence level and may lose their interest at workplace (American city business
journals, 2018). This puts workforce in the ethical dilemma that whether they should complaint
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about such cases or not. However, Boyd (2010) argued that the ethical dilemma in the
organization can be sorted out by allowing a specific language to convey and report against the
harassing behavior; although that communicator would not be punished to take the step against
the harasser. Hence, this is the common ethical issue in the current business era but to deal with
this unfair challenge, the manager of National milling company of Guyana Inc. can set strict
policies again such people so they cannot create mess at the workplace. Thus, it can be a
practical approach for the company because by including the new standard regarding the safety
of employees would create a strong identity in the mind of employees and they can remain
engaged for an extended period.
CONCLUSION
By the report of part A, it has been found that McDonald’s is performing the different
CSR activities to maintain the brand image in the consumers and has a positive impact on the
business activities. It has been concluded that by considering the reduction in greenhouse gas
emissions as a CSR activity can develop a chance to minimize the waste and maximize the living
standard of employees. On the other hand, CSR functionalities in the field of education raises
awareness among students regarding the existence of the McDonald's and a significant
contribution in the education of Hispanic students. Apart from this, from Part B, it has been
summarized that most of the organizations in modern businesses face the issues related to
harassment of workers and violation of internal policies. Moreover, it can also be concluded that
the company should set the strict code of conduct and comply with the same so as to ensure
ethical operation of the business with the increased rate of return.
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CSRwire, 2018. Celebrity Friends of Ronald McDonald House Charities(R) (RMHC (R)) Host A
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