Food Service Management Report: McDonald's Ethical Practices and CSR

This report provides a detailed analysis of McDonald's food service management, focusing on corporate social responsibility (CSR) and ethical considerations. It begins with an introduction to McDonald's, outlining its global presence and core offerings. The report explores CSR, explaining its importance and analyzing ethical issues such as law and social responsibility, externalities, and labor markets within the context of McDonald's operations. It then critically examines McDonald's ethical practices in relation to these issues, highlighting initiatives such as sustainable operations and labor market strategies. The impact of CSR practices on McDonald's is evaluated, emphasizing positive outcomes like cost reduction, enhanced goodwill, and customer retention. Furthermore, the report identifies key areas of the business for monitoring, including menu planning, staff payments, and food safety, providing justifications for their selection. Performance review techniques like feedback and human resource accounting are discussed in relation to these areas. Finally, the report offers justified recommendations to address challenges within the monitored business areas, contributing to a comprehensive understanding of McDonald's food service management and its challenges.

FOOD SERVICE
MANAGEMENT

Table of Contents
Table of Contents.......................................................................................................................2
INTRODUCTION......................................................................................................................3
LO3.........................................................................................................................................3
Introduction to restaurant.......................................................................................................3
Explaining CSR......................................................................................................................4
Critically analysing ethical issues..........................................................................................4
Critically analysing ethical practices that are carried out in McDonald's in relation to the
issues raised previously..........................................................................................................5
Critically analysing the impact of CSR practices on the McDonald’s...................................5
LO4.........................................................................................................................................6
Explaining the areas of the business which are being monitored and why............................6
Explaining the process of monitoring the areas of the business using a range of
performance review techniques..............................................................................................7
Providing justified recommendations to resolve the challenges within the areas of the
business monitored in above section......................................................................................8
CONCLUSION..........................................................................................................................8
REFERENCES.........................................................................................................................10

INTRODUCTION
Food service management is an activity of keeping the satisfaction level of customers
high and with lower cost of operations. Food service Management use the company and their
interpersonal skills for rendering high quality services and curated experiences to the
customers. Food service Management involves where activities such as controlling food
keeping the business profitable, collecting regular feedbacks and opinions of customers for
efficient services and personalize experiences. Food Service Management is basically
department in an hospitality organisation, the duties and responsibilities there is from
business to business according to their size nature and scope of the entity.
LO3
Introduction to restaurant
The report is developed on McDonald's which is an American fast food restaurant
chain founded in 1940 by Richard and Maurice McDonald’s. This is the world's largest
restaurant chain serving over 69 million customers on a daily basis from around hundred
countries in the world. McDonald’s serves to worldwide population with across 37,855
outlets (Martin-Rios and et. al., 2018). The company is the second largest private employer
around the globe and first in hospitality industry. McDonald's is a fast food serving restaurant
offering hamburger in which it has specialisation along with it serves other side dishes such
as French fries, soft drinks, milkshake, salads, coffee, desserts, breakfast meal and wraps.
McDonald’s is expanded and established in worldwide locations acquiring different
geographical markets but its headquarters are in Chicago, U.S.

Explaining CSR
CSR stands for corporate social responsibility which a self regulating business model
is enabling the organisation to be socially accountable to the stakeholders and to the general
public. Social responsibility is a practice which is also known as corporate citizenship and
basically an activity which is conducted with a sense of responsibility towards the society and
environment in which company is having their operations. The engagement of company in
CSR activities and practicing CSR means that in ordinary course of business entities
operating in such a manner that enhance the society and environment instead of negatively
affecting it. Caesar is a broad concept which can be undertaken in many forms according to
the company and the industry in which the organisation is operating. CSR is an essential
activity for both the community and the organisation as the Goodwill of the company rises
along with profit in the environment and contributing towards the society.
Critically analysing ethical issues
Corporate social responsibility is an important part of business ethics as is normally
responsible for treating their employees well and render best experiences and satisfaction to
the customers but also for keeping up with the society as well. Some of the basic CSR
activities involves minimising environmental impact of the operations, greeting money to the
needy and dangerous products and many more. but the problem with responsibility and
business ethics occurs then the business has to wait his responsibilities against their
responsibilities to their shareholders (De Boeck and et. al., 2019). The three ethical issues
which of very common for organisations operating in the marketplace are:

 Law and social responsibility- A business CSR constantly clashes with the ethical
responsibilities. New organisations legally bounded and responsible for looking out
for the shareholders profit and at the very same time they are socially responsible for
reducing social damage by taking appropriate decision. This’s one of the most
potential ethical issue related to CSR which are faced by McDonald’s. The company
has to make their arrangements according to the law and their CSR strategies. Also
even plans and ultimate goals are developed by integrating all the laws, CSR and
strategic objectives.
 Externalities- These are basically those cost which are occurred in business but paid
by the society. Externalities refers to those damages which a business operation
causes to the society by polluting the environment and which local people pay money
to the departments such as local sanitization department for cleaning the mess created
by the corporates (Kibler and et. al., 2018). In case of McDonald’s the externalities
which are paid by society due to their operations is for managing the garbage and dirt
that is exposed by the restaurants in the public dustbins and sometimes even on the
roads.
 Labour markets- The corporate organisation and executive are always do anything
to minimise their cost and increasing profits. The best and quickest way to cost
minimization and logical process of profit maximization is by removing number of
employees. This option of provided to McDonald’s and other large corporations
holding huge workforce, increases unemployment and creates lot of green on social
assistance program. The managers are responsible so keeping the balance while
making such decisions.
Critically analysing ethical practices that are carried out in McDonald's in relation to the
issues raised previously
McDonald’s is a restaurant chain and the food service management department of
McDonald is responsible for maintaining and fulfilling CSR activities. There are several
actions taken by McDonald’s managers and executive for maintaining CSR in relation with
above issues.
 Law and social responsibilities- In order to be competitive and working in balance
manner McDonald's managers develop a relationship between there social
responsibilities and operational laws. In other words McDonald's managers develop
their operational laws by conducting research about the social responsibility of

McDonald while operating in a particular market segment (Salihoglu and et. al.,
2018). Moreover, restaurant managers also make sure that their CSR are being
fulfilled and motivate staff to work ethically and by following all the laws.
 Externalities- For reducing externalities and impact of their operations to the society
McDonald’s has a policy for all its restaurants operating in different geographical
locations that the restaurants will be operated by sustainable means. For instance
currently due to increasing use of plastic and its harm towards the environment
McDonald’s removed all unnecessary plastic packaging and other items, which the
best example is using paper straws which are recyclables.
 Labour markets- In case of labour markets McDonald is world's largest employer in
hospitality sector therefore the issue of labour market is irrelevant for the
organisation. McDonald believes that human resource is one of the greatest assets and
invest appropriate amount in training in developing better skills in their workforce
rather than removing them from organisation for increasing profit levels.
Critically analysing the impact of CSR practices on the McDonald’s
From the above evaluation and analysis of different ethical issues related to CSR in
general and the actions taken by McDonald’s for these ethical issues it can be summarised
that company is impacted in positive manners due to the activities undertakes. McDonald’s is
well aware of its social responsibilities towards the environment and to the society in which it
is operating (Christensen, Jablonski and O'Hara, 2019). Company makes its laws according to
the social responsibilities in order to fulfil the motive of the organisation and also
accomplishing its social responsibilities. In case of labour market issue McDonald’s is proven
to be the second largest employer it’s automatically fulfilled its objectives. And in case of
externalities McDonald's make use of sustainable operations and work according to the
environment reducing harm towards it. All these combined action of McDonald's food
service management department enables the company to reduce their costs as the work
according to law therefore stay safe from any unessential penalties and also makes the most
of the available resources out of which human resource considered to be the most important.
The mixture of these actions enhances the goodwill and sustainability of McDonald's in the
marketplace along with helping it to attract and retain more and more customers.

LO4
Explaining the areas of the business which are being monitored and why
In recent years the business of McDonald's have faced many challenges and problems due
to various reasons the most potential is increasing competitors and rapidly evolving
marketplace and customer preferences. Three areas of McDonald's business are being
monitored which are mentioned below with proper reasoning.
 Menu planning- One the biggest problem faced by McDonald’s in past years is
losing loyal customers problem. The reason behind popularity of McDonald and its
Goodwill is its fast convenience food which is tasty but company missed the memo
about changing customer preferences and increasing competition. In recent years fast
food and restaurant chain competition has increased new people entering the
marketplace which innovative offerings and McDonald’s not made any changes in
their menu working with the old fashion styles and at a certain extent quaintly
unhealthy (Okumus, Koseoglu and Ma, 2018).
 Staff payments- McDonald's has a reputation for paying it staff poorly. The workers
of the organisation has been hit many protests against organisation in relation to the
wages they earn. Many staff of the company very old in working with the
organisation for years still they on minimum wage without any increments.
 Food safety- Another business area in which McDonald's needs monitoring is
improving its reputation in the marketplace in relation with the food safety. Recent
times a suppliers the change restaurant in China was accused of supplying rotten meat
and expiry dates. This impacted the business and reputation of McDonald’s in
Chinese Market mostly but also has some impact over its international restaurant
chains.
Explaining the process of monitoring the areas of the business using a range of performance
review techniques
Performance review techniques are basically some systematic processes that evaluates
and analysing the performance of the business in terms of productivity with the respect of
predetermined objectives and aims. Few performance review techniques are used in respect
of monitoring the above-mentioned business areas of McDonald’s.

 Menu planning- In case of menu planning is concerned and related to the customers
that references and need satisfaction. Therefore, for monitoring this area and bringing
change and innovation in menu design and offerings of McDonald’s feedback is a
suitable performance review technique. Feedback is basically conducted for knowing
the opinion and viewpoints of different individuals either associated with business or
not (Petljak and et. al., 2018). By collecting feedbacks McDonald’s can easily gain
knowledge about the preferences of customers and their needs. the company can make
use of these feedbacks to make changes in the menu and design innovative new menu
which is according to the current trends and meeting the needs of consumers. It can
also help McDonald's to attract new potential buyers and retaining them for longer
duration.
 Staff payments- In relation to human resource and their wage payments McDonald's
can make use of human resource accounting method to appropriately calculate and
provide what exactly an employee deserves in relation to the services they render to
the public on behalf of McDonald’s. The human resource accounting method analyse
and evaluate the performance of employees through the monetary benefits which
yields to the company (Attia and Salama, 2018). This method enable food service
management department to compare the cost of retaining an employee that is the cost
which is incurred by company and the monetary benefits that is the contribution a
specific employee is making towards organisation and its predetermined goals. with
the help of this tool and employees performance is properly evaluated on cost
accounting methods and factors like overheads, quality, service value etc. which helps
the company to pay appropriate amount to employee and satisfy them along with
motivating.
 Food safety- In case of food safety and repetition of McDonald’s in Chinese and
international marketplaces company can you make its suppliers review system more
thorough and strict (Chiadamrong and Tham, 2018). This implies that McDonald’s
should make improvements in suppliers make a valuation of their raw materials
quality at the time of purchase and develop proper rules and regulations for franchise
owners to be more careful while serving to customers and enhance their food safety
standards.

Providing justified recommendations to resolve the challenges within the areas of the
business monitored in above section
In order to the most effective and potential in the marketplace need to take some
measures and steps improve its reputation in the marketplace and gain its goodwill back.
Challenges highlighted above are the old fashion styles and menu, the unsatisfied and poorly
paid employees and reputational issues due to food safety measures. In case of these
company can make use of effective performance review techniques to analyse the root cause
of these problems and accordingly make changes with the current trends and technologies to
be most effective. Instance in case of menu planning companies use of heat packs as
suggested to know the perspective of customers and accordingly plan their menu. In case of
employees a human resource cost accounting method can be used for appropriate evaluating
the performance and accordingly paying them so that the human resource motivated and
satisfied which will enhance their productivity and automatically enhance their profits of
McDonald’s (Wen and et. al., 2018). In case of food safety measures it is a very crucial point
which is about the Goodwill of the organisation the quality of its offerings. McDonald’s
should meet its supplier review system thorough and complex and also increase their food
safety standards in order to serve best quality and healthy food different restaurants in varied
marketplaces.
CONCLUSION
The above report is based on food service management systems and CSR activities of
hospitality organisation operating in the marketplace. Corporate social responsibility is an
essential practice which is undertaken by all different sorts of organisations present in
different industries. The food Service management department Bosch company are
responsible for taking care of its CSR activities and also keeping the cause of operation slow
and enhancing the profitability. Various ethical issues are evaluated and discussed in the
report for gaining the insight of the importance of working effectively and fulfilling social
responsibility of organisation.

REFERENCES
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