McDonald’s

CSR Activities
Maia Mikadze
Giga Kutkhashvili
Avtandil Medzvelia

Caucasus School of Business

2019-2020
 OVERVIEW
• An American fast food company founded in 1940 by
Richard and Maurice McDonald, but Ray Kroc made
changes to the brothers' business to modernize it
• The world's largest restaurant chain by revenue,
serving over 69 million customers daily in over 100
countries across 37,855 outlets as of 2018
• Not only hamburgers and French fries, but also
chicken products, soft drinks, milkshakes, salads…
• The world's second-largest private employer with
1.7 million employees
• Market capitalization was valued at over US $134.5
billion in September 2018.
• Emblematic of globalization -"McDonaldization"
• "Big Mac Index":
McDonald’s
Logos
Competitors

1. KFC
2. Burger King
3. Subway
4. Starbucks
5. Pizza Hut
6. Domino’s
7. Dunkin’ Donuts
8. Wendy’s
 We take our social responsibilities very seriously.
What is For example, we're always looking for ways to
McDonald's reduce, reuse and recycle in our restaurants and
across our whole business. For example, we use
corporate low energy LED light bulbs, energy saving
equipment and waterless urinals, and recycle
social used cooking oil into biodiesel to fuel more than
half of our delivery trucks. We also recycle the
responsibility cardboard boxes used in more than 89% of our
restaurants, and more than 85% of our packaging
(CSR) policy? is made from renewable resources. We know that
every little bit helps.
 HFC-Free Restaurant

• In 2003 McDonald’s opened the world’s first

HFC-free restaurant in Denmark.
• The new restaurant uses 100% HFC-free
technology in all its refrigeration and
ventilation equipment  Absolutely harmless
to the environment.
• The HFC-free McDonald’s met with solid
approval from environmental organizations,
commending McDonald’s for its leadership
actions toward finding better environmental
alternatives.
McDonald’s CSR
At McDonald’s we recognize our responsibility to protect
and preserve the environment for future generations to
come , our goal is simple, all of our activities are
centered around the key priorities of reduce, reuse,
recycle and redesign with the aim to use less energy
 Packaging
Reduce the environmental impacts of
consumer packaging through:
• designing packaging that is more resource
efficient and more recyclable;
• increasing the recovery and recycling of used
packaging from households and away from
home sources ;
• taking action to reduce the incidence and
impacts of litter ;
When it comes to packaging and waste they
are continuing to explore options to decrease
environmental impact.
Their first priority is to reduce the resources
and materials being used wherever possible.
Where they can’t reduce their materials, their
aim is to reduce waste to landfill. they
continue to seek ways to incorporate reuse
and recycling into their restaurants and they
see this as one of their greatest opportunities
for improvement.
 Waste Management
Waste reduction and management is a key priority for the
business but continues to be a challenge. They have just
completed a Back of House recycling trial in 25 restaurants
aiming to divert more than 60 per cent of waste from landfill. As
part of the recycling initiative, the restaurants separated organics
food and liquid ), cardboard and general waste on site. The
organics were then transported to a compost facility, the
cardboard recycled and the general waste is separated into
recyclable waste streams at the waste collector’s facility. The trial
has been successful in increasing landfill diversion rates over a
short space of time however there were issues with waste
contamination. Based on these learnings, we will continue to trial
Back of House recycling in the restaurants and expand into the
market when this issue is resolved. Achieving effective packaging
recycling is an important priority for us and reaching an effective
solution is currently a focus for the business.
 Oil to Biodisel
Matthew Howe, senior vice president with McDonald’s UK,
said the fast food restaurant should eventually be able to
replace the six million litres of diesel its fleet used last year
with cooking oil from its 1,200 restaurants in Britain.“ We
may even have a little bit of excess (biodiesel) capacity we
can sell into the market,” he told Reuters. McDonald’s
launched its rollout on Monday with half of its 45-strong
fleet based in Basingstoke and in about 12 months would
convert all its 155 delivery trucks to run on the green fuel.
Vikram Ogale, Director of National Supply Chain & Quality
Assurance, McDonald's India, indicated, in a report by PTI,
that the company converts more than 35,000 liters of used
cooking oil every month into biodiesel; which, in turn, aids
in saving more than 4,20,000 liters of crude oil annually.
The fuel thus created emits 75 per cent less carbon than
diesel and petrol. Sandeep Chaturvedi, President of
Biodiesel Association of India, hailed the move stating, "All
food companies to learn from this initiative and apply it in
their own business model."
Palm Oil

Palm oil has been and continues to be a major driver of

deforestation of some of the world’s most biodiverse
forests, destroying the habitat of already endangered
species. This forest loss is throwing out millions of tonnes
of greenhouse gases into the atmosphere and contributing
to climate change.
To mitigate this problem, in 2004 a not-for-profit
organization Roundtable of Sustainable Palm Oil (RSPO)
was formed. It unites stakeholders from the 7 sectors of
the palm oil industry and aims to develop and implement
global standards for sustainable palm oil.
- McDonald’s became a member of RSPO. This membership
represents significant progress in the company's
commitment to source palm oil only from RSPO member
companies and to use only RSPO-certified palm oil in
restaurants and pre-cooked chicken and potato products.
 Principles

BUSINESS SHAREHOLDERS IDENTIFYING CSR IS NOT PROFIT =

EQUALS DO NOT OWN STAKEHOLDERS SOLELY A ECONOMIC
SOCIAL THE FIRM IS EASY; CORPORATE VALUE +
PROGRESS PRIORITIZING RESPONSIBILITY SOCIAL VALUE
STAKEHOLDER
INTERESTS IS
DIFFICULT
 Stakeholders
• Organizational
• Employees
• Economic
• Customers
• Competitors
• Shareholders
• Investors
• Societal
• Locals
• Society in general
• Environmental
Organizations
Thanks for
your
Attention!