• Internal Code :
  • Subject Code : THT2114
  • University :
  • Subject Name : Management

Sustainable Operations and Destinations 

Contents

Introduction

Expectations of the public and governments

The interrelationship between CSR and Triple bottom line

McDonald's CSR and Triple bottom line

CSR in current COVID-19 situation

Impact of CSR

Conclusion

Reference

Introduction to Corporate Social Responsibility

Corporate social responsibility is a growing practice that integrates sustainable development into the company's business model. It has a major influence on social, economic, and environmental factors. The concept is becoming highly crucial for organizations as it provides a competitive advantage in the most effective manner. Furthermore, CSR is the company's dedication to administer social, ecological, and financial effects of its function and in line with public expectations. Corporate social responsibility strategies support the organization to make a positive influence on the environment and stakeholders. The key attraction of CSR is the sense of self-responsibility to shelter the setting and give credibility to public responsibility rather than a legalized duty forced by law.

Regrettably, numerous firms acknowledge CSR as a permissible compulsion or just a promotional instrument for long-term monetary advantage. Currently, the monetary benefits of performing CSR are increasingly attracting new companies. Some of them use unauthorized promotion tools, like greenwashing, to increase their effectiveness or conceal their injurious and environmental unfriendly production. In addition, followers of CSR argue that there are noteworthy benefits in communally accountable behavior.

Corporations are using their CSR actions to employ and keep the finest talent and to create an affiliation with society to augment company pressure on legislation. The report will critically analyze the CSR industry in Australia. It will further analyze the relevant elements of the company's CSR programs. For these analyses, McDonald’s corporation will be used. Finally, the conclusion will summarize the overall analyses.

Expectations of The Public and Governments

McDonald's corporation makes continuous efforts to establish the best food system in the world. The company always focuses on improving supply, distribution systems in order to provide the best services to the customers. Furthermore, the company has divided its CSR into five different categories including food, people, community, sourcing, and planet. All these categories help to provide maximum benefit to the company (Crane, Matten & Spence, 2019). The food or quality control helps to assess the quality of products. People are based on the viewpoint of individual growth. The planet is based on the thought that environmental concern is a part of CSR. As a huge organization, the major responsibility of the company is to support the local economy. For consumers, a robust and transparent corporate social responsibility programs are essential before they are willing to purchase.

The most essential accountability of management is to manage the business in a profitable manner. Furthermore, McDonald's is a noteworthy provider to the Australian economy. The companies put in 0.2 percent of the gross domestic product. The company also spent money on utilities, manufacturing, and support services. Every eatery makes more than 100 employment opportunities for the local society. In addition, it is the moral accountability of the business to function in a way that not simply reduce its effects on the natural ecosystem, but also improves sustainability. The company holds its volume to pressure ecological sound practice with its dealer and other industry (Grayson & Hodges, 2017).

Furthermore, it also connects with organizations that function in an environmentally sustainable way. Packaging or creation is completed in a way that utilizes the least probable funds while fulfilling the business’s guarantee to its clients of offering hygienic food. To reduce the ecological effect of distribution, the business is reprocessing cookery oil to fuel its trucks. The business is also modernizing present provisions to make them environmentally responsive and implementing new technologies to reduce water and energy consumption.

For instance: the business only uses local plants for landscape as they require less water and need the least care. The restaurants have elevated ceiling to reduce the requirement for air conditioning and wall have apparent windowpane to decrease energy use through illumination. In addition, responsible businesses go beyond deliver financial values to the society they function and limit their footprints; they also make optimistic aid to society by recognizing the unique challenge and tackle them. McDonald's is a significant leader in flexible CSR (Lins, Servaes & Tamayo, 2017).). The corporation supports actions and expands leisure services for kids in metropolitan centers. Also, they have taken the job of availing healthy foodstuff to citizens living in city centers at reasonable prices. The companies seek out to obtain products that have the least effect on biodiversity and deforestation. In the present scenario, the company is functioning with dealers and business associates to recognize the means of dipping energy use in its restaurants.

The Interrelationship Between CSR and Triple Bottom Line

The triple bottom line is a structure or assumption that recommends that companies must focus on community and ecological distress. In the organization, corporate social responsibility is reported and deliberated by executing the replica of the Triple bottom line. Though, TBL is classified as its influence on citizens, planet, and revenue. For each international business, CSR practices are extremely necessary for endurance in the marketplace. it has been recognized that CSR performance of the association in the packaged food business is classified on the three aspects such as triple bottom line model, the occurrence of change approach in the corporation performance and third is whether the performance succeeds as being outside the organization normal business practice. By employing the triple bottom line structure it has been identified that association typically concern about the people –based activities as it is easy to attain and appease their stakeholders. Furthermore, TBL is the right social responsibility framework for identifying and engaging stakeholders.

Furthermore, there is an interrelationship between corporate social responsibility and the triple bottom line. The triple bottom is an important theory of corporate social responsibility. Triple Bottom Line works on the statement that the business is an affiliate of the ethical society, and these present its social tasks (Wang, Tong, Takeuchi & George, 2016). This hypothesis focuses on sustainability, and need that any business considers its proceedings on three autonomous scales such as financial sustainability, social sustainability, and ecological sustainability.

These three tabulations are all proposed at long-term sustainability. Financial sustainability must focus on the long term as this is the environment of a determined company. Social sustainability provides priority on the balance of financial influence in the culture. Competition in the business ground is widespread, and positive, deeds, but maximizes the bottom line in community terms need that a business cultivates surroundings in which all can be successful (Stirling, Palazzo & Phillips, 2016). The obligation of ecological sustainability stem from the credit that resources are not unlimited, and lead to the analysis that too much deprivation will deteriorate the wellbeing of people.

McDonald's CSR and Triple Bottom Line

In the food business, there are numerous matters that are becoming more famous in regard to corporate social responsibility. These comprise the utilization of animal wellbeing practices, giving back to society, sustainable and reasonable trade cultivation forecasts, and human rights. One means that McDonald's try to be a responsible business is through the endorsement of sustainable agricultural way (Liang & Renneboog, 2017). McDonald’s had also connected Unilever and Nestle in assurance to move to completely sustainably-sourced palm oil by 2015. Clear cutting for the palm tree plantation process is a cause of greenhouse gas and this business uses indirectly affect the reputation of the business.

By shifting to fair practice for palm oil, this pessimistic environment impacts can be alleviated to a certain degree. An instance of McDonald’s practices at corporate accountability can be found in its financial support of the Ronald McDonald House. This body offers shelter and some partial monetary support for people whose kids are experiencing treatment for life-threatening sickness (Hussain, Rigoni & Orij, 2018). The community iss sponsored not just by McDonald’s, but also by numerous dealers in its supply chain. Although these are all fine instance, McDonald’s is not complete without a blunder. Furthermore, depressing exposure surrounding its worker pay scales has started to rise. The negativity surrounding its offerings to the rising Australian fatness epidemic has also sustained to develop, regardless of hard work by the business to initiate and endorse salad stuff and improved low-fat options.

CSR in Current Covid-19 Situation

As the COVID-19 outburst was first identified, it has extended to over 190 countries and all Australian states. The virus is having a visible effect on worldwide financial growth. Estimation points out that the disease could trim international financial growth by as much as 2.0% per month if present circumstances continue. International trade could also drop by 13% to 32%, depending on the deepness and degree of the worldwide financial downturn (Flores, Gavronski, Nardi & Haag, 2017). It is the corporate social responsibility of huge organizations to protect their employees, customers, and all the necessary stakeholders. Furthermore, the current situations can also highlight the CSR responsibilities of numerous bigger organizations and their contributions to the economy.

The company stated that restaurant workers have been and will continue to be our main focus through this catastrophe. They are very important in serving our clients and sustaining our society. During this catastrophe, employees of McDonald’s employees been supervising the influence of ambiguity and never wavering in their promise. The franchisees of the organization are providing improved reimbursement programs including admiration pay, bonuses, gift cards and more to demonstrate people how much they are respected. These events and many others demonstrate employees that the company thinks about their security, protection, and happiness.

In addition, many businesses encouraged by the actions of McDonald’s Australia so they are also showing admiration to each business owned restaurant worker by offering additional benefits, which equal 10 percent of pay will earn in May. Furthermore, the company has been taking numerous steps throughout the COVID-19 epidemic to support workers, including:

  • almost 50 new security actions, like caring barriers, wellness test, mask and gloves
  • remunerated sick leave if they are affected by COVID-19
  • offered assistance and emotional support through therapy meeting

McDonald’s Corporation specified that remarkable alteration in consumer actions through the coronavirus pandemic harms its income and sale. CSR and brand persist to play a significant role, particularly during these unmanageable times. The significance of sincerity, devotion, and social outreach helps companies keep the product and status genuine during this time. The company is supporting cause during COVID-19 and serving NPOs or aid organization (Jamali & Karam, 2018). This clearly shows companies' engagement and involvement with pubic and government. A corporation that sustains the COVID-19 epidemic through this time goes above and beyond to work with contributions and NPOs to promote relations construct from real care.

This is a chance for novel associations, better community appointments, and an educational opportunity for workers on the significance of giving back at this time. As this is such an unprecedented instance, it is predictable that numerous businesses have had to rapidly move priority, reconsider the current agenda and plan, and of course, assess their catastrophe relief procedure (Mcdonalds, 2019). This offers the CSR and industry continuity team the chance to reorganize and streamline their tactics to guarantee society and employee commitment remains top of mind during these discussions. McDonald's is offering wellbeing, security, and protection to its workers and also comprise opportunities for its workers to connect in significant reaction to the disaster that pressure those pillar.

The community just needs support in any shape. It could be comforted that a brand or store they depend on is running usually or that merchandise they require is accessible. Brands should resist the appeal to continually update patrons. McDonald’s focuses to give 400,000 KF94 masks to the crisis operation center for use by those who are serving to fight the COVID-19 virus from the front lines of the society, counting police and first responders (Crane, Matten & Spence, 2019). As an international corporation, McDonald’s has access to a reserve of masks through its associates in China as they start to get well from COVID-19.

McDonald’s has constantly been a home base for a different society. In affiliation with franchisees, the company is executing extra defensive actions to maintain the security of patrons, team, and society. Guaranteeing the wellbeing and protection of citizens and society is the uppermost priority as Australia rapidly mobilizes to slow the spread of COVID-19. The company's decisions are directed by a specialist, local and state health authority leadership. in addition, the company is also obeying with all local and state restaurant limits, where appropriate. As the countries continue to navigate the outburst of coronavirus, there is no superior concern than shielding the wellbeing of employees, people, and customers.

Impact of CSR

The CSR activities are highly effective and useful in improving the profit and productivity of the business in the most effective manner. With the help of CSR activities, the company has become a reputable business in Australia. However, some practices of Mcdonalds were highly criticized by the community. This shows that the company must put more emphasis on improving the working conditions and providing the right pay to employees. McDonald's frequently declares itself as a business with a strong sense of corporate accountability (Lee & Lambert, 2017). Though, the vision does not straight deal with this point. The primary strategy comprises the progress of their community, particularly those functioning within the restaurants.

The conduct of these workers, though, is frequently questioned by protester and society leaders especially those situated in a poor area. Also questioned is the level of nourishment McDonald's present in their foodstuff, the unfavorable consequence McDonald's restaurant has on the surroundings, the outcome McDonald's publicity campaign has on manipulating kids, a matter concerning extension into non-Western civilization, and their utilization of political and lawful power in restricting free communication against their practice (Hussain, Rigoni & Orij, 2018).

The exploitation of personnel is an ordinary charge in today's international market; however, very few extremely victorious, "well appreciated" corporations require fending off allegation as frequently as McDonald's. Workers in the fast-food business and at McDonald's in particular, are remunerated very low salary due to the stress to keep earnings high and pay expenses low. This also led to understaffing throughout peak age, thus putting extreme strain onto the personnel. This may generate a traumatic working surrounding and leads to accidents.

Conclusion on Corporate Social Responsibility

It has been identified from the overall report that McDonald's Corporation has implemented CSR activities in an effective manner. The report also highlighted the current contribution of McDonald's during the pandemic. The company is mainly contributing to providing maximum safety to the employees. However, McDonald could focus on raising their community events by taking more accountability over their aid organization and by endorsing it a lot more on their packages and on other advertisements. This will improve their charitable trust and it will have additional donations over the Ronald McDonald charity.

McDonald's has superior customs and they are highly enthusiastic about taking concern for their workers and their clientele and they have made a lot of modernism to assist their stakeholders. Though, they could function on including a healthy alternative in their menu which may be suitable for more target customers. Furthermore, McDonald has also worked with its Franchise to decrease greenhouse gas. This is a profit for the community as it will decrease the total health problems created by business pollution. The overall analysis shows that CSR activities encourage organizations to contribute to the society and economy even during the pandemics.

Reference for Corporate Social Responsibility

Anaf, J., Baum, F. E., Fisher, M., Harris, E., & Friel, S. (2017). Assessing the health impact of transnational corporations: a case study on McDonald’s Australia. Globalization and health, 13(1), 7.

Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings and cases in a global context. London: Routledge.

Flores, F. S., Gavronski, I., Nardi, V., & Haag, R. (2017). The influence of triple bottom line on international operations management. Journal of Operations and Supply Chain Management (JOSCM), 10(2), 85-99.

Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make corporate social responsibility work for your business. London: Routledge.

Hussain, N., Rigoni, U., & Orij, R. P. (2018). Corporate governance and sustainability performance: Analysis of triple bottom line performance. Journal of Business Ethics, 149(2), 411-432.

Jamali, D., & Karam, C. (2018). Corporate social responsibility in developing countries as an emerging field of study. International Journal of Management Reviews, 20(1), 32-61.

Lee, A., & Lambert, C. (2017). Corporate social responsibility in McDonald’s Australia. Asian Case Research Journal, 21(02), 393-430.

Liang, H., & Renneboog, L. (2017). On the foundations of corporate social responsibility. The Journal of Finance, 72(2), 853-910.

Lins, K. V., Servaes, H., & Tamayo, A. (2017). Social capital, trust, and firm performance: The value of corporate social responsibility during the financial crisis. The Journal of Finance, 72(4), 1785-1824.

Mcdonalds corporation, (2019). 2019 ANNUAL REPORT. Retrieved 18 May 2020, from https://corporate.mcdonalds.com/content/dam/gwscorp/nfl/investor-relations-content/annual-reports/2019%20Annual%20Report.pdf

McWilliams, A., Parhankangas, A., Coupet, J., Welch, E., & Barnum, D. T. (2016). Strategic decision making for the triple bottom line. Business Strategy and the Environment, 25(3), 193-204.

Schrempf-Stirling, J., Palazzo, G., & Phillips, R. A. (2016). Historic corporate social responsibility. Academy of Management Review, 41(4), 700-719.

Wang, H., Tong, L., Takeuchi, R., & George, G. (2016). Corporate social responsibility: An overview and new research directions: Thematic issue on corporate social responsibility.

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