Enterprise Sustainability and Business Ethics
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Slide: Title Page
Slide: Content page
Slide: Introduction
Overview of McDonald’s Global Impact
One of the largest fast-food chains globally (Christian and Gereffi, 2018).
Meals are offered to millions of customers daily.
Current Sustainability Efforts
Success in sustainable sourcing and reducing plastic waste (Gardas, Raut, and Narkhede, 2019).
Broader sustainability challenges.
Business Case for Ethics and Sustainability
Importance of ethical practices for brand reputation and consumer trust.
Long-term benefits of sustainability for operational efficiency and cost reduction.
Presentation Objective
Evolution of McDonald's into an ethical and sustainable fast-food industry giant.
Speaker Notes:
McDonald's is arguably the world's largest fast-food brand with significant influence over food culture and consumption patterns. Millions of customers are produced every day by this company. Yet, such companies' operations have led to enormous environmental degradation and social damage issues. Despite its stride towards sustainability and reduction in plastic waste, the confusion persists in McDonald's not embracing complete sustainability and ethics all the time. This presentation would focus on an overarching analysis of how McDonald's could evolve business ethics and the sustainability of their practices by meeting international standards, including the UN's 17 Sustainable Development Goals, as well as those of the EU.
Slide: Overview of Triple Layer Business Canvas Model
Economic Layer
Key Partners: Suppliers, Green Tech Firms, Local Communities (Breuer et al., 2018).
Key Activities: Sustainable sourcing, Green energy investments
Value Propositions: Eco-friendly products, Reduced carbon footprint
Customer Relationships: Clear communication, Educating the customers on sustainability
Revenue Streams: Subscription services, Partnerships
Speaker Notes
"The Economic Layer, similar to the traditional Business Model Canvas, is income-generating."
"Our firm will collaborate with green technology firms and local suppliers so that our operations do not adversely affect the environment.
"By emphasising green value propositions, we create trust and transparency, securing loyalty as we continue to drive our sustainability message".
Slide :
Environmental Layer
Supply Chain and Distribution: Renewables, Electric vehicles in our fleet
Manufacturing: Improve energy efficiency and waste reduction
Usage: Products for years and recycling.
End: Closed loop recycling; Compostable pack.
Speaker Notes
"The Environmental Layer integrates our business activities with responsible and environmentally conscious practices in the life cycle of our product."
"Integrate renewable energy and electric vehicles to reduce our carbon footprint from production to delivery."
"Our durable products and closed-loop recycling will ensure no waste and a more circular economy."
Slide:
Social Layer
Community Impact: Jobs, Local initiatives support
Employee Engagement: Training in sustainability, Incentives for green behaviour
Customer Involvement: Education programs, Feedback channels
Social Value: Equitable access, Community empowerment
Speaker Notes:
"The Social Layer bridges our sustainability framework to all stakeholders, that is to say, employees, communities, and customers."
Through local employment and supporting programs in a community, we will also make positive impacts on societies. It shall establish a brand that supports social development.
We connect employees for sustainability purposes as well as educate the consumers on sustaining the environment through the aspect of sustainability and social benefit.
Slide: Social Layer of Triple Layer Business Canvas
Improvement of labour conditions in the supply chain
Community engagement towards sustainable activities
Employee education related to sustainability would be improved
Speaker Notes:
The social layer deals with the responsibilities of McDonald's toward their employees, suppliers, and local communities. Improvement in labour conditions, especially in a supply chain, and community investments would bring a company like McDonald's one step closer to an ethical and socially responsible business.
Slide: CSR Analysis
CSR Activities currently
Procuring sustainable ingredients.
Supports various community projects as well as local programs.
Improvement Scope
The waste management practice should be improved.
Fair labour practice in the company especially in the supply chain is needed.
Alignment with 17 SDGs by the UN
The effort should better align with a few of the specific SDGs to make an impact better.
Speaker Notes:
This presentation finds McDonald's worthwhile because the company has exhibited an improvement in its Corporate Social Responsibility. Specifically, it shows improvements in the sustainable sourcing of ingredients. That would then mean ensuring that whatever is used for menu items is environmentally friendly and ethically sourced. Besides this, the company also facilitates community projects where it positively contributes to local areas. However, pressing issues facing the company, whereby waste management strategies and fair labour practices regarding its entire supply chain are crucial areas of improvement. If McDonald's could align its CSR activities more in line with the 17 SDGs proclaimed by the UN, then the company would significantly beef up its commitment towards global sustainability, many social and environmental challenges would be addressed, and brand reputation would improve.
Slide: Alignment with UN and EU 17 SDGs
Relevant SDGs
Goal 12: Responsible Consumption and Production
Goal 13: Climate Action
Alignment Strategies
Decrease waste.
Decrease Greenhouse gas emissions.
Develop supply chains having measures to advance responsible agricultural and farming practices.
Supporting Activities Examples
Reduction of food waste in restaurants.
Manages a partnership with the suppliers to ensure that the companies use environmentally friendly farming techniques.
Speaker Notes:
Most of the 17 SDGs of the UN are especially aligned with McDonald's business and its sustainability commitment. For instance, Goal 12 Responsible Consumption and Production encourages businesses to forward sustainable consumption and production patterns in sourcing and consumption. Goal 13 Climate Action sets its ambition to take immediate action to combat climate change. McDonald's may work towards achieving these goals by implementing solutions to help ensure fewer and reduced forms of waste, such as improving food waste management in restaurants and reducing packaging waste. Important as well is reducing emissions through the use of energy and promoting sustainable agriculture methods up their supply chain.
Slide: Application of Deontology and Utilitarianism
Deontology: Focus on what McDonald's should do to be ethical with its practices (Adekoya and Jimoh, 2019)
Utilitarianism: Balancing the consequences the sustainability decisions are likely to have with all the stakeholders.
Discuss the ethical implications of current practices.
Speaker Notes:
On the use of deontological ethics as applied to McDonald's practice, it is observed that the corporation has a responsibility to the task of abiding by ethical standards, not considering profit instead. It frees the consideration for the effect a decision would have on everyone from the employees and clients to the environment. These two theories help shine a light on how the sustainability practice can be enhanced for McDonald's.
Slide: Green and Sustainable Funding
Green Financing Products
Green Bonds: Raised by banks and other lenders to finance green projects including renewable energy, energy efficiency, and waste reduction (Chan, 2021).
Benefits of green finance:
Sustainability-Linked Loans: Financing with conditions attached to McDonald's performance on carbon abatement and sustainable sourcing.
Government Funding Tools
UK Green Investment Bank: A government-provided fund for businesses to switch over to low-carbon and sustainable modes of operation.
Clean Growth Fund: The government funds such companies that reduce emissions and promote clean growth.
Speaker notes
To further enhance sustainability efforts, McDonald's can tap practical sources of green funding for its green initiatives. For example, green bonds issued by financial institutions enable the company to raise funds directly for environmental projects, such as waste reduction or renewable energy sources. Sustainability-linked loans reward McDonald's with favourable loan terms if it achieves its sustainability targets, thus creating financial and environmental incentives. Government funding also shows significant support. For example, the UK Green Investment Bank funds companies that engage in business activities that will reduce carbon emissions; McDonald's aims to have a greener supply chain.
Slide: Regulations to Sustainability
Policies in Propose:
Sustainable Supply Chain Policy – Source all its key ingredients sustainably in the following year, by reducing waste, and providing more transparency about its whole supply chain by 2030 (McDonald and Hite, 2023).
Law and regulations applicable to it
Environmental Protection Act of 1990: It is found in the UK; this legislation reduces wastes and pollution by using a lot of green and sustainability principles that should be embraced, and waste and pollution reduction will help it reach the expected targets set through sustainable supply chains. It also encompasses the EU circular economy action plan.
Paris Agreement 2015: Aim at limiting global warming, which is of interest to McDonald's in its attempt to minimize GHG through its supply chain.
Modern Slavery Act 2015: Require transparency over the source of origin by ensuring that all standards are in place in the treatment of ethical labourers within the company's supply chain.
Speaker notes
"To lead in sustainability, McDonald's has adopted a Sustainable Supply Chain Policy. The policy is committed to sourcing 100% of ingredients sustainably by 2030, as well as waste reduction and supply chain transparency. Several key regulations closely align with this policy. For instance, the UK Environmental Protection Act requires waste reduction, which McDonald's is committed to through waste reduction. The EU Circular Economy Action Plan promotes recycling, which aligns with the waste reduction element of McDonald's policy.".
Slide: Transparency and Sustainability Report
Transparency Analysis
Transparency helps to build the confidence of stakeholders by offering access to sustainability practices, impacts, and McDonald's Transparency also leads to accountability towards sustainable objectives.
Reporting Instruments
GRI: Overall structure that outlines the environmental, social, and economic impacts of McDonald's (Anaf et al., 2017)
SASB: This concerns financially material information related to sustainability that is of interest to investors
Integrated Reporting: This combines finance and sustainability metrics to have a view of the company
New Innovative Reporting Technologies
Blockchain for Supply Chain Transparency: Traces from source to store and sustainable practices.
Speaker Notes
"Transparency in reporting on sustainability is vital to McDonald's as it deepens stakeholder trust and accountability. McDonald's is using the Global Reporting Initiative, which includes the spectrum of sustainability metrics: from social to environmental impacts. SASB reporting, focusing on financial materiality, is particularly useful to investors who want to see where McDonald's stands on its long-term sustainability.". As the outcome, Integrated Reporting integrates financial and sustainability information about McDonald's present situation and future opportunities. Solutions like blockchain contribute to further transparency: using the blockchain, stakeholders are now able to trace all stages of every product and hence confirm McDonald's devotion to sustainable sourcing.
Slide: Sustainability Strategy
Implementing Lean Manufacturing and eco-efficiency improvements.
Implementing Sustainable Supply Chain Management practices.
Trained and educated employees on ethical business practices (Gheribi, 2017).
Speaker Notes:
Sustainability could be enhanced for McDonald's by embracing Lean Manufacturing, waste minimisation, and efficiency. Aligning supply chain management toward sustainability and ensuring all ethical labour practices are in place would be at the top of the list. Training in these areas would be one means of instilling a sustainability culture within an organisation.
Slide: Proposed Sustainability Initiative
Develop a new initiative on sustainability.
Focus on renewable energy, sustainable packaging, and responsible sourcing.
Focus on how this project will help McDonald's become the perfect example of sustainability (Crane et al., 2019).
Speaker Notes:
The three parts of the sustainability initiative for McDonald's are: transition to renewable energy sources for all operations; sustainable packaging; and responsible sourcing. These changes will create a new standard in the fast-food industry- sustainability by McDonald's.
Slide: International Manager's Global Mindset
Importance of a global mindset for sustainability (Rimanoczy, 2020).
Examples of how international managers might lead corporate sustainability
Call to action for managers to actively lead ethical and sustainable practices.
Speaker Notes:
Most importantly, international managers have significant roles to play regarding sustainability. With a global mindset, they can implement sustainable practices in different markets respecting all local contexts but maintaining a high standard of global sustainability standards. The managers at McDonald's should act as role models and push these initiatives throughout all of their regions.
Slide: Recommendations and Call to Action
Key Recommendations for McDonald's
Establish robust initiatives in sourcing and waste reduction.
Engage more with the communities, making efforts to improve social responsibility.
Innovation Required
Create a culture of ongoing sustainability innovation.
Call for Action
Challenge the leaders in the industry to seriously take ethics and sustainability to new high levels.
Speaker Notes:
Overall, McDonald's stands to gain tremendously in playing the lead corporate sustainability role through a holistic economic, environmental, and social approach. This also comes out clearly with current innovation, transparent reporting on sustainability issues, and compliance with all international standards to build a reputation on responsible business principles. These recommendations from the presentation would then be aimed at exciting change across the industry and driving meaningful moves toward sustainability in McDonald's.
References
Adekoya, O.D. and Jimoh, I., (2019). Scholars Journal of Economics, Business and Management.
Anaf, J., Baum, F.E., Fisher, M., Harris, E. and Friel, S., (2017). Assessing the health impact of transnational corporations: a case study on McDonald’s Australia. Globalization and Health, 13, pp.1-16.
Breuer, H., Fichter, K., Lüdeke-Freund, F. and Tiemann, I., (2018). Sustainability-oriented business model development: Principles, criteria and tools. International Journal of Entrepreneurial Venturing, 10(2), pp.256-286.
Breuer, H., Fichter, K., Lüdeke-Freund, F. and Tiemann, I., 2018. Sustainability-oriented business model development: Principles, criteria and tools. International Journal of Entrepreneurial Venturing, 10(2), pp.256-286.
Chan, R., (2021). Ensuring impactful performance in green bonds and sustainability-linked loans. TheADELAIDE LAW REVIEW, 42(1), pp.221-258.
Christian, M. and Gereffi, G., (2018). Fast-food value chains and childhood obesity: A global perspective. Pediatric Obesity: Etiology, Pathogenesis and Treatment, pp.717-730.
Crane, A., Matten, D., Glozer, S. and Spence, L.J., (2019). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Gardas, B.B., Raut, R.D. and Narkhede, B., (2019). Identifying critical success factors to facilitate reusable plastic packaging towards sustainable supply chain management. Journal of environmental management, 236, pp.81-92.
Gheribi, E., (2017). The activities of foodservice companies in the area of corporate social responsibility–on the Example of International Fast Food Chain. Journal of positive management, 8(1), pp.64-77.
McDonald, K.S. and Hite, L.M., (2023). Career development: A human resource development perspective. Routledge.
Rimanoczy, I., (2020). The sustainability mindset principles: A guide to developing a mindset for a better world. Routledge.
