MGT4161: Analysing Ethical Issues at McDonald's in Global Management

This report examines the ethical issues McDonald's faces as a global fast-food organization, focusing on its impact on the environment, treatment of suppliers, consumers, and employees. It highlights concerns about unethical practices, such as contributing to pollution through factory expansion and unsustainable packaging. The report suggests implementing Corporate Social Responsibility (CSR) principles, emphasizing economic, legal, ethical, and environmental responsibilities to address these issues. Recommendations include using sustainable packaging like paper bags, adopting electric-powered machinery, and respecting stakeholder opinions to foster a more ethical and sustainable business model. The analysis concludes that by embracing CSR and prioritizing environmental sustainability, McDonald's can improve its brand image, increase consumer trust, and ensure long-term success.

MGT4161 MANAGEMENT
IN A GLOBALISED

Table of Contents
INTRODUCTION...........................................................................................................................2
ETHICAL ISSUE FACING THE ORGANIZTION.......................................................................2
CONCLUSION AND RECOMMENDATIONS............................................................................3
REFERENCES ...............................................................................................................................5

INTRODUCTION
Management is defined as process of managing, and controlling key performance and
practices of human resources as well as overall business. This procedure encompasses varied
stages and actions such as effective planning, organizing, decision-making, leading and
motivating individuals to perform even better than before. The current assignment will be based
on McDonald's, which falls under the category of top 10 fast food organizations in the world.
The study will explain ethical issue facing by chosen company and appropriate recommendations
based on overall analysis. It will justify one ethical or corporate responsibility concept to address
the specific issue.
ETHICAL ISSUE FACING THE ORGANIZTION
In the recent time, it is quite essential for a company whether it is large or small, private
or public to follow and conduct the CSR practices, because it helped them to survive in the world
of business for longer time. By doing so organizations may gain a lot of benefits in bulk and
obtain desire outcomes in effective manner (What are the ethical issues of McDonalds, 2021).
Well its all above those companies that consider corporate social responsibility term into their
consideration. Now those who does not do that are dealing with major or drastic issues. For
example, McDonald's is included in list of most unethical firms in the whole world because of its
venture conduct including the way it may put impact on environment in negative manner.
Furthermore, the organization is facing ethical issue due to its unethical form of practice or
treatment in the context of key suppliers, consumers, employees and environment (Gilbert,
2020). In the United Kingdom, firm is getting the least rating with 35% from residents or
population just because of its unethical behaviour with each stakeholder as discussed above.
The chosen company might be accused of having the worst impact on nature and overall
environment in more than one manner. For instance, it may effort to build hundreds of factories
worldwide just to increase profitability, generate revenue and gain competitive advantages by
producing tasty burgers, fries, and other fast food items that customers prefer to eat and purchase
(ABIDIN, HASHIM and ARIFF, 2020). The process or decision of establishing factories around
the world may contribute to increase air, water and other form of pollution that is not beneficial
and in favour of human well-being as well as wild life. Organization may establish its brand
image among more than 119 nations; therefore the amount of factories or business units and

work cover to make its goods, may significantly and adversely impact environment around the
venture.
CONCLUSION AND RECOMMENDATIONS
From above analysis, it has been concluded that organization is facing major issue
related to environmental sustainability and unethical practices regarding key stakeholders, while
running its venture into food & beverage industry. Just because of its unfair treatment and lack of
concern about sustainable environment, it has been criticized by many consumers, which lead to
decrease its sales, productivity and profitability. Its business practices driven management
attention toward dealing with legal matters that put negative impact on its brand image and
reputation. Organization may overcome the current issue in term of following and considering
strategic suggestions and these are:
 McDonald's could implement corporate social responsibility (CSR) theory, which enable
it to address ethical problem that its stakeholders are facing as discussed above. As a
specific concept of the way companies interact with surrounding community as well as
wide world, CSR theory is encompassing four elements such as economic, legal, ethical
and environmental responsibility (Singh and Misra, 2021). It driven the attention of a
company toward conducting ethical and sustainable practices related to these four areas
along with more, to grow rapidly and gain benefit of sustaining business in the market
positively without dealing with any legal matter. Organization can take approach to
respect the points of views and opinion of their stakeholders, because it can give firm
chance to grow with teams of skilled people's who always support and take initiative to
achieve organizational aims and objectives in effective manner.
 Furthermore, it is quite essential for McDonald's to take another suggestion into
considering and implement that appropriately. For example, instead of using plastic bag
for packing food items, it can take action to use paper bags in bulk. Along with that, it
can take decision to establish factories and product food products by using those
machines that are electric instead of utilizing those that run via petrol or diesel, which
contaminate air.
 Organization can take approach to utilize paper box to pack big parcels, as it contribute to
make environment sustainability forever.

REFERENCES
Book and Journals
ABIDIN, A.F.Z., HASHIM, H.A. and ARIFF, A.M., 2020. COMMITMENT TOWARDS
ETHICS: A SUSTAINABLE CORPORATE AGENDA BY NON-FINANCIAL
COMPANIES IN MALAYSIA. COMMITMENT. 15(7). pp.164-182.
Basar, B., 2021. Multiple instances of negative publicity: the role of publicity domain similarity.
Journal of Marketing Communications. pp.1-26.
Gilbert, H., 2020. McDonald's tops index of unethical companies. Supply Management, 11(9),
p.9.
Singh, K. and Misra, M., 2021. Linking corporate social responsibility (CSR) and organizational
performance: The moderating effect of corporate reputation. European Research on
Management and Business Economics. 27(1). p.100139.
Online
What are the ethical issues of McDonalds?. 2021. [Online]. Available Through:
<https://www.sidmartinbio.org/what-are-the-ethical-issues-of-mcdonalds/>