ETHICAL PRACTICES

FOLLOWED BY MCDONALD’S
 MC’DONALD’S INTRODUCTION
• McDonald’s is the global fast food giant.

• Entered India in Oct 1996.

• Forty eight years down the line - world’s largest food-

service chain

• more than 30,000 restaurants in 100 countries

• serves 46 million customers ever day.

 It has created history
 It’s a franchisee
• McDonald's, franchisor grants the right to sell
• McDonald's recognized the need for a co-
coordinated marketing policy
• Mc Donald’s finds out what the customers want
• Cinema and television advertising have played
a major part in McDonald's marketing mix.
• McDonald's employees follow a standard
ethical code.
• McDonald’s introduced
home delivery system in
stipulated areas.

• Also introduced samples

with the core products.
PRODUCTS
 MISSION

'Promote Diversity and Inclusion

among our Employees,
Owner/Operator's and Suppliers who
represent the diverse
populations McDonald's serves around
the globe.
 VISION

• To be world’s best quick service restaurant

• Provide outstanding quality,service,

cleanliness and value

• Make every customer smile

 Mc Donald’s commitment
• Relationship between franchisor, franchisee and
supplier to be of paramount importance

• Ray Kroc recognized the need very early on for

franchisees

• McDonald's will not offer franchises to partnerships,

consortia or absentee investors

• The selection process is rigorous to ensure that

McDonald's only recruits the right people.
 MC’DONALDS STRATEGY

• Positioned as a family restaurant

• Extra care has been taken to make the

restaurant children - friendly
I Love Children- Happy Meal
 HEY, HAV KEPT FULL SENTENCES HERE COZ JO
BHI BOLEGA USKA EXPLNATION IDHAR SE HI
PADNA HOGA..D PERSON WHO VL XPLN DS
SLIDE CAN EDIT IT ACC
• McDonald’s strategy is obviously to make the eating-out function
the focus of these outings

• Focused on Price Penetration

• In 1998 McDonald’s had achieved sufficient level of success, on

their offerings & then educated customers about their core
strengths

• Service, hygiene, products etc.

• McDonald’s not only highlighted the
economic value but also the experiential
aspects at their store.

• Aimed at 100% customer satisfaction for every

customer, on every visit.
– Service
– Accuracy in order taking
– Knowing needs
– Quality food
 BUSINESS ETHICS - Principles

• Transparency

• Accountability

• Honesty

• Trust
 Ethical Practices
followed by Mac’D
 CODE OF ETHICS

 McDonald's Expectations
• customer is important
• employees to be committed to their jobs
• to acknowledge the community that
supports
• Training and orientation of employees
 EMPLOYEE
RESPONSIBILITIES
• To perform to the highest standards set

• Abusive behavior is not allowed

• to help create an environment that is not offensive

• practice safety at all times

• Alcohol or illegal drugs are forbidden.

 COMPLIANCE WITH LAWS, RULES
AND REGULATIONS

• Fair dealing

• Act violating the law – strictly prohibited

• Attention to the laws, rules & regulations –

distribution, securities, civil rights etc.
 DISCRIMINATION AND
HARASSMENT
• Workplace free of discrimination &
harassment – race, color, religion, age,
gender etc.

• Lodging of complaint in case of

discrimination
 POLITICAL CONTRIBUTIONS

• Company resources not to be used to

support any political party or candidate

• Lobbying is encouraged – maintains cordial

relations with law makers
 ACCOUNTING AND REPORTING

• Follow company’s acconting policies

• Describe business records accurately

• Data should not be false or altered

• All disclosures should be complete and

accurate
 RESPONSIBILITY TO THE
COMPANY
• No usage of any company assets for
personal reasons.

• An employee must guard against joining

enterprises that create a conflict of interest.

• Privileged company information must be

respected.
 CONFIDENTIALITY
• Protection of company’s confidential
information

• Information, if disclosed – harmful

• Eg – trade secrets, business trends, financial

inforation, marketing plans, R&D ideas,
manufacturing process, potential acquisitions
etc.
 STRATEGIC RECRUITMENT &
SELECTION
• Should be done considering company’s mission
and objectives

• Competitive advantage – retaining quality

workforce

• Selection and recruitment – merit basis

• Should not be on the basis of influence or relations

 PROVISION OF CONDUCIVE
WORKING ENVIRONMENT
• It is a must to increase work productivity

• Helps employees perform better and provides

job satisfaction

• Promotes positive image

• Good working condition – non personal

communication tool
 THE EMPLOYEE AND THE
COMMUNITY
• McDonald's is active in community
involvement and in charities

• Employees do not pursue any political activity

• They give time and effort when needed

• Quality of Products and Services

 EMPLOYEE RECOURSE
• Report unethical or criminal behaivour

• Complaint will be dealt with and may involve

an investigation.

• The employee is protected from retaliation by

strict rules and regulations.

• McDonald's implements a procedure for this

 CORPORATE CITIZENSHIP
• In compliance with all relevant laws and
regulations
• Community health and family welfare
• Modern scientific and managerial techniques
and expertise
• In consonance with national and
regional priorities.
• Respect the culture, customs and traditions of
each country
 COMPETITION
• Promote the liberalisation of trade.

• Investment in each country.

• In restrictive trade practices.

• No misleading statements about competitors.

 GIFTS AND DONATIONS
• No illegal payments

• Does not obtain any uncompetitive favours

• No involvement in bribery, fraud and corruption

• Comply with government procurement regulations

• Transparent in all its dealings with government

agencies.
 ETHICS IN ADVERTISEMENT

• Radio and press advertisements are used to get

specific messages

• Promotional activities

•  Ads talk about emotions, family ties, and fun,

and all these have high visual appeal.

• Ads are not misleading

 Ad Campaign Launched
• ‘McDonald’s mein hai kuch baat’- encourage
people to visit them, they tried to move on making
McDonald’s a regular experience.

• ‘Toh aaj McDonald’s ho jaye’- everyday

experience. Encouraging the customers to visit
regularly.

• In 2003 they came up with a new tag line saying

‘I’m lovin’ it’. It was carried out all over the world,
expecting high increase in revenue(15% in India)
I Love Children

I Have Gifts
For them,
They Can play
Games also
 ETHICS IN HR

• Strives to attract and hire the best

• Provides their employees the skills to meet

standard of excellence

• Emphasis on motivation and commitment

• Orientation for ethical behaviour

• Degree of persistence for goal directed
behavior

• Striving for employee commitment

• Employees contribution to the company

is a must

• Retaining a loyal and motivated staff

• Employee-friendly work environment

 ETHICS IN FINANCE
• No access to and possession of information about
the company

• Not use or proliferate information

Such information includes:-

• Acquisition and divestiture of businesses or business
units.
• Financial information such as profits, earnings and
dividends.
• Announcement of new product introductions or
developments.
• Asset revaluations.

• Investment decisions / plans.

• Restructuring plans.

• Major supply and delivery agreements.

• Raising of finances
 ETHICS IN FOOD
• Started providing coke with Small McShake
for Rs 8 or more
• affordable menu - ‘Happy Price Menu’
(priced at Rs 20 each)
• McDonald’s is leading the effort to harmonize
food safety standards and audits
• within the food industry by working with the
Global Food Safety Initiative
(GFSI).
 Social responsibility
• In 1974 -Philadelphia Eagle Fred
Hill worked together with
McDonald’s to open up a house in
which families of sick children and
live while their seriously ill children
receive treatment.

• New York Times, as of 2005, over

10 million families have been
welcome to the Ronald McDonald
house
• One of the leaders in Canada for youth
employment, having over 50% of their staff
under the age of 18 years

• Paper menus are made from 100%

recycled paper.

• 95% of the cardboard at McDonald’s is

recycled
•Social Accountability program,
including online training for
suppliers, their facility managers,
and McDonald's supply chain
staff.

• Direct suppliers.
Beyond the food -Toy
safety

• The most important thing to know is that

our Happy Meal toys are safe.
• Happy Meal toys are backed by a
proactive safety program that starts with
the
design, long before a toy makes it to
production.
• McDonald’s have built some locations in
Alberta that are partially powered on wind-
generated electricity

• Nutrition calculator to their website

 MCDONALD'S CORPORATE
GOVERNANCE

 “The basis for our entire business is that we

are ethical, truthful and dependable. It takes
time to build a reputation. We are not
promoters. We are business people with a
solid, permanent, constructive ethical
program that will be in style years from now
even more than it is today.”
 CORPORATE GOVERNANCE
PRINCIPLES
• Foundation of personal and professional
integrity
• McDonald’s Corporation deals in an honest,
fair, diligent and ethical manner.
• Earns valuable trust
• Fulfills obligations to shareholders
• Continuous improvement
• focus on leadership in corporate governance
• No change in commitment
 CONCLUSION
• Food industry is one of the largest markets all
over the world.

• Risk posed by the food industry.

• High Information regarding product contents

may be difficult to obtain.

• Customers satisfaction is the main

contributor of profit.            
• Puts people first

• Having the right products at the right prices

• Making places showplaces

• Promoting their brand

• advantage of their increasing economies of

scale
BYE BYE SEE U AT McDonald’S

h a n k
T
y o u
THANK YOU