Business Sustainability – McDonald

McDonald is one of the world largest food service retailers with operations in more than 100 countries and serves 69 million people each day. The company have more than 36000 restaurants along with 1.9 million employees globally as well as it serves a standard menu throughout the world with small geographical variation. Company products include chick, beef and fish burgers, salads, coffee and range of beverages. This numerous size and scale of company operations results in massive environmental and social impact.

In this essay, sustainable practices of McDonalds are evaluate in order to analyse how the effectively company is addressing the challenges of sustainable operations. Moreover, effectiveness of the company policies to achieve sustainability and inconsistencies of these policies are discussed (Mcdonald, 2015).

According to Angell and Klassen, 1999, environmental consideration in operational management include operating issues (pollution and waste), structural issue (process and facilities) along with infrastructural issue (supplier, workforce and new product). Three pillars of sustainability of are social, economic and environment. The social issues include fair trade, health and equal right, as well as environmental factors, include pollution and resource availability.

Hence, company should these issues to achieve sustainable operational development. Sustainable operational development is concerned with resources utilization to meet the needs of current generations without compromising the ability of future generations (Henriques and Richardson, 2013).

In order to address the sustainability issues company have started a wide range initiative. The company have started a program ‘Good Planet’ to increase energy efficiency as well as increase the amount of recycling. The effectiveness of these programs is that the company managed to reduce its carbon footprint by 30%. This helped the company to improve operational and infrastructural environment issues (McDonalds, 2015).

In addition company ‘water steward’ program at its restaurant to minimise the wastage of water. Company average used of water at its premises is 2225 m3 which is way above the standards published by the US environmental agency which are 300 gallon per day. Nevertheless, the program is consistent with efforts to manage the sustainability of the operations and it is expected that company will reduce it water usage to 1400 m3 per day. These practices are consistent with effort to make operations more sustainable (Mcdonalds Sustainbility report, 2013).

Farfan (2015) analysed that company ‘Good food’ initiatives are focused to bring balance choice as well as provide more information to the customer to healthy living. The company is committed to providing quality food as well as a health of the children’s through providing nutrition information. The measure includes low sodium and sugar and providing fruit and vegetables. This program is effective to improve the life of people and make a good social impact. Nevertheless, the company should remove the food with danger fats which are still part of its menu. This represents an inconsistency of company to have sustainability in its processes.

The company is committed to improving the infrastructural issue through a program called ‘good people’. McDonald’s believe providing opportunity and diverse labour force. There is a range of initiatives such healthy working environment, equal opportunity, diversity and respect and dignity for an employee to make its operation more sustainable (Kohl, 2013).

Rucki (2013) evaluated that the program is useful for the company as its increase the workplace health and safety as well as helped McDonald to more good employers. The social impact of the program has far reaching effectives on MacDonald to become a sustainable employer. Moreover, a company has started programs for a sustainability of raw material through deploying unsustainable land management as well as introduced hydro-energy in its operations. This makes the company commitment towards the sustainable operation (McDonald, 2015).

Rucki (2013) discussed that McDonald’s have started ‘Good sourcing’ measure in order to build sustainable supply chain through collaboration and leadership. The principle objectives of company is to develop a sustainable supply chain through sustainable beef production, fair trade procurement of coffee, palm oil and fish as well as 100% packaging material based on the fibre which helps the recycling and reduce waste. Company practices are consistent to improve the sustainability of its operation.

Henriques and Richardson (2013) elaborated that the range of measures helps to improve operating and infrastructural issues throughout its supply chain. The sustainable beef supplier should have good health and safety conditions, RSPO certified palm oil, fair-trade coffee, and purchase of white fish from verified sustainable supplier as well as buying chicken from supplier who follow good practices. The practice marks good practices to improve environment issues and develop more sustainable operations. The joint coordination, transparency and trust, communication and collaboration have helped the company to increase the sustainability (Mcdonald, 2015).

Nevertheless, Katsnelson (2015) stated that the inconsistency is presented in the policy and implementation of these sustainable practices. The performance of the company is low in terms of achieving the sustainable standards. The initiative such as sustainable received criticism from NGO claiming that it is fundamentally flaws efforts made by the McDonalds for green washing.

Moreover, company initiative to provide health food to children has delivered poor results and numbers of products it offers are unhealthy. The healthy food for the children has been called has deceptive marketing program for children. (Rucki, 2013) Moreover, the company has failed to monitor the practices of its franchisee in terms of ethical practices. Even, judgment issued by National Labour Relations Board, said company is equally responsible for exploitation of labour because of franchise operations (Rushe, 2014).

In conclusion, McDonald’s have started and deployed range to practise to tackle its operation, structural as well as infrastructural environment issues. Company programs for food, planet, people as well as resource utilization represent the commitment of the company to become more sustainable. However, company has failed to fully implement these programs and more concerned with revenues.

Company most initiate have ended in failure and in long-run these programs deliver zero results. Company use these practices a green washing marketing with an serious attempt to implement the sustainable strategy.  Therefore, it is important for the company to understand the real value sustainability program deliver for the company in terms of cost reduction, increase efficiency as well as improve image.

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