McDonald: Corporate Social Responsibility

McDonald’s: Corporate Social Responsibility

Ronnie Holland

 Executive Summary

     Delta Consulting Group (DCG) is submitting to McDonald’s Austria, this analysis case for resistance to change, being that our services were solicited by the Corporate Social Responsibility (CSR) Manager of McDonald’s Austria, Christopher Meyer. We are providing an assessment of the current productivity as it applies to social responsibility and environmental commitment. In the end, we implemented our recommendation for change based on our needs assessment which included the anticipated resistance for change, using a Social Responsibility Committee (SRC) development strategy. We also used the 7-S change model in conjunction with a readiness for change survey and provided the benefits of improving the environmental commitment and perception of social responsibility for the company as it correlates with the customers.

     McDonald’s Austria Case for Change resistance: encapsulates the logic and routine measures leading the organizations environmental obligation and the consumer’s awareness of its responsibility, links marketing and resistance to change objectives by McDonald’s Austria with the objectives attained by DCG recommendations, as well as, recognizes the recommended benefits of the technological, marketing and operational changes.

Key Findings

     McDonald’s Austria will put into effect the recommendations attained, implement more strategic marketing with the help of DCG, offer methods of training on environmental issues and social awareness and responsibilities and have these implemented in 60 to 90 days. Consumer recognition of McDonald’s Austria’s social responsibility and environmental commitment is dependent on upon the efforts of the SRT and McDonald’s Austria CSR manager. However, the principal purpose is to alter McDonald’s Austria’s consumers view on the organizations commitment to environmental conservation as well as its social responsibility efforts. Thus, merging a more thriving CSR strategy, marketing strategies, and an SRC which will enhance McDonald’s Austria marketability.

Introduction

     An in-depth analysis was conducted of the McDonald’s Corporate Social Responsibility Challenge which included the strengths, weakness, opportunities and threats of McDonald’s Austria. Strategies that will improve the consumer awareness of McDonald’s Austria efforts involving environmental changes and the insight that McDonald’s Austria is not a socially responsible company were brought to the forefront during this analysis. A significant amount these implications of change were eminent based on the internal and external analysis and the 7-S model. It was discovered that McDonald’s Austria considers the employees to be the company’s most valuable resource. (Oberseder, Gotze, Saupper, & Wilhelmer, 2011)  There were other issues detected in regards to the opinion of corporate and the consumer’s point-of-view of the commitment of McDonald’s Austria.  

     McDonald’s Austria’s customers’ recognition of the new green restaurant design was prevalent in retrospect to the company’s effort to its environmental commitment contrary to their belief the company was committed to being socially responsible. DCG recommends training the employees on the company’s direction of being environmentally committed and their green initiative. It is a strategic resource of DCG to provide a low-cost marketing strategy to assist McDonald’s Austria in informing their consumers their initiatives as well as change their perceptions. There have been several assessments used to get a better point-of-view of how McDonald’s Austria views itself and how the consumers see them.

     An analysis of the Corporate Social Responsibility policy that is currently in place was done and the social responsibility actions have been noted. This analysis will be beneficial for McDonald’s Austria in establishing their presence and stance by making strategic influences in their social actions. It is with purpose that DCG provide a level of service to McDonald’s Austria that will make certain the consumers understand the company’s effort of being environmentally committed and socially responsible. Also, assist the company with successfully circumvent high production cost and expand the strategies of their CSR to edge out its competitors.

Analysis

     An internal and external analysis of McDonald’s Austria’s environment and the factors that impact their environmental commitment and social responsibility was performed. In addition, a SWOT analysis was used to determine the need for change within the company. A business with the size and success of McDonald’s must be keenly aware of their strengths, weaknesses, threats and opportunities in order for continued growth. This growth will be accomplished through McDonald’s Austria’s CSR functioning at high levels in its environment.

McDonalds is the top fast food retailer in the world. However, it’s not always easy being on top. The world is holding fast food retailers accountable for being more socially responsible. We recommend the 7s diagnostic model in order for McDonalds to create change within the internal aspect of the organization in regards to CSR.

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Shared Values

McDonalds need to capitalize on its website. The company owners and staff can share ideas on how to make McDonalds socially responsible through green and health efforts.  McDonalds should rank the problems that endanger it quest to become a beater CSR organization. This will allow McDonald to become aware of their problems and conduct necessary solutions in an effort to combat these problems.

Strategy

McDonalds overall corporate image and reputation is on the line. The company wants to make their consumer base more aware of the CSR initiatives. We recommend that McDonalds become more proactive in their efforts through their marketing campaign. Customers need to be made aware of healthy food and drink choices to serve as substitutes for less healthy foods and drinks. The company should implement more recycling

Structure

McDonalds is a large company with multi-levels of management. During McDonalds annual corporate governance assessment meeting it is essential that the strategy is passed down to the front line workers.