The article in the url below demonstrates the range of issues facing a company as it tries to create value for its diverse set of stakeholders. This is true even for a firm as large and complex as McDonald's ("Every day McDonald's serves 69m customers, more than the population of Britain or France"), which wouldn't normally spring to mind as the epitome of a socially responsible organization. The article profiles the career of Bob Langert, who converted a short-term assignment in the firm in 1988 (dealing with a spat over polystyrene packaging) into a 25 year career as McDonald's CSR officer:
"It was a Herculean task. … Apart from litter, he had to deal with animal welfare, environmental destruction, obesity and worker's rights."
The opportunities, however, when a company the size of McDonald's decides to make a change in operating practices, are massive:
"McDonald's [often] took action even when there was little sign of public concern. Shaving one inch off the napkins saved 3m lbs of paper annually, for example, but few consumers noticed."
Another example is the firm's supply chain for eggs:
"In the late 1990s, after complaints from campaign groups about the living conditions of hens, Mr Langert visited an egg facility to find the conditions were indeed terrible. In August 2000 the firm said it would buy eggs only from suppliers that gave hens 72 square inches of space, compared with an industry average of 48 square inches. Suppliers resisted so strongly that McDonald's had to find new sources for its eggs. But those who complied found that the mortality rates of hens decreased and egg-laying rates increased, offsetting the extra costs."
The list of issues were endless:
"Human working conditions also caused the company trouble. … Another issue was the use of 'trans fats' to cook the restaurant fries, which were deemed to increase the risk of heart disease; it took six years for the chain to phase out the practice. But the company has also added more salads and healthy options."
Even if critics continue to campaign against McDonald's and hold it up as the anti-CSR company, it is clear from the article that the potential to change the world lies with these large organizations, much more than the Patagonias or NGOs of this world:
"Was all the effort worth it? It seems like that many of the people who care a lot about these issues would never eat a fast-food burger in the first place. But Mr Langert did more than most to reduce environmental waste and animal cruelty."
Take care
David
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Do you want ethics with that?
February 9, 2019
The Economist
Late Edition – Final
55
