An ongoing ethical issue in the U.S is our food production, consumption and marketing methods. Many documentary films have been made in recent years concerning sugar, meat harvesting and chemicals that Americans eat every day, but perhaps the most iconic and quite possibly godfather to many was Morgan Spurlock’s Super-Size Me. Super-Size Me followed a healthy male around for 30 days while he consumed unlimited calories from McDonald’s, conducted quasi science experiments on their food and gradually deteriorated in health while packing on pounds and pounds of fat. The documentary called into question the ethics of the company in their marketing to children, and their role in the U.S obesity epidemic while other actions against them claim wage theft/ poverty level pay and exploitation of workers.
The real start to the McDonald’s Corporation was with Ray Croc in 1961 after buying the rights to the business from the McDonald brothers (McDonald’s, 2019). The business became so wildly successful that even after the 2004 Spurlock documentary sales revenue continued to grow every year except 2009 (Glennen, 2017). The company maintained massive growth as the chain expanded globally. As of 2016 there are 36,000 restaurants in 100 countries with Kazakhstan being the latest addition to the list, however revenue has been in decline since 2013 (Mcdonald’s, 2019) (Glennen, 2017). While investors argue over what stage the company might be in today and if they are posing for the rebound the data indicated by slowed growth seems to show that the negative press came about in the company’s maturity phase and has followed it to a decline that began around 2013 (Glenne, 2017). For the purposes of this blog we will examine how the company approached it’s ethical issues during maturity and may have extended that phase longer than many may have expected.
McDonald’s has addressed each charge and taken steps to mitigate public backlash. One of the earlier instances where the company found itself in hot water was their use of primary colors and cartoon characters to market to young children (Weebly, 2019). This issue was a double edged sword; on one hand the company was providing a great service to families with ill children via the Ronald McDonald house on the other many thought that using a clown to market unhealthy food to children was less than socially responsible. In order to combat these charges McDonald’s instituted a campaign that showed Ronald McDonald snowboarding and engaging in other fitness activities to promote healthy ideas a “Global ambassador of fun, fitness and Children’s wellbeing” as opposed to his former title of “chief happiness officer” (Smallwood, 2019). Further the role of the Ronald McDonald charities was expanded from housing families in need to providing support rooms in hospitals and sending mobile hospital units to vulnerable communities (RMCH, 2019). On the product front McDonald’s began to offer healthier alternatives across the menu but specifically on kid’s menus which provided the option for juice, apple slices and yogurt over fires and a soda. The efforts appear to have been well received as the company continued to grow revenue in the early 2000’s amidst the allegations (Glennen, 2017).
Another ethical issue that McDonald’s has faced in the U.S is the fight for $15. Worker’s claims included long hours, pay which does not provide a living wage and poor treatment by management. These complaints resulted in different protest across the country and national news attention. In order to appear co-operative and mindful of employee concerns the company made a promise of at least $1 an hour above minimum wage for starting pay (Duprey, 2018). These complaints began in 2016 during the decline phase for the company which appears to have continued into 2018 marking some of the worst years for franchise growth in the company’s history. One way they may be able to address wage concerns and problems in other countries might be to replace the majority of the staff with automated systems that enhance customer experience via efficiency and are in keeping with the speed and innovation the McDonald brothers began with.
From the data available on company growth it appears that the changes made in the early 2000’s were adequate in maintaining and acquiring customers. People must have enjoyed the new menu that included premium beef and healthy alternatives as well as the new charity initiatives from the company. If I were to make one recommendation on another change that would have been socially responsible and well received it would be beverage portion control. Refills tend to be free regardless, so in order to enhance a healthy imagine McDonald’s could have reduced their production of super large cups and went to a one size fits all model. Prices can remain the same, customers don’t feel shorted and they can promote themselves as calorie conscious. Concerning the company’s current issues as the brand reaches further into decline they can both address worker issues and new competition from fast casual chains by staying health conscious, inexpensive, and expediting the food prep process through automation. Fast casual chains feel homier and inviting which give them a competitive edge (Glennen, 2017). On the other hand they are expensive and while they seem healthier to some the fact is calorie density is very similar to chains like McDonald’s. To address these issue the company should maintain low prices, automate and improve their system as much and possible and focus a campaign towards the fact that a calorie is a calorie regardless of what burger you choose.
References
Duprey, R. (2018, October 25). Why a McDonald’s $15 Minimum Wage Wouldn’t Be as Big as Amazon’s. Retrieved February 6, 2019, from https://www.fool.com/investing/2018/10/25/why-a-mcdonalds-15-minimum-wage-wouldnt-be-the-sam.aspx
Glennen, C. (2017, June 28). The rise of McDonald’s: From super sized criticism to progressive burger company. Retrieved February 6, 2019, from https://www.worldfinance.com/markets/the-rise-of-mcdonalds-from-super-sized-criticism-to-progressive-burger-company
McDonald’s. (2019). History. Retrieved February 6, 2019, from https://corporate.mcdonalds.com/corpmcd/about-us/history.html
RMHC. (2019). Our charity of choice:Ronald McDonald House Charities® (RMHC®). Retrieved February 6, 2019, from https://corporate.mcdonalds.com/corpmcd/scale-for-good/our-people-and-communities/ronald-mcconald-house-charities.html
Smallwood, K. (2018, August 15). What Ever Happened to Ronald McDonald? (And the Bizarre Rules for Those Playing the Character). Retrieved February 6, 2019, from http://www.todayifoundout.com/index.php/2018/08/the-bizarre-rules-surrounding-being-ronald-mcdonald/
Weebly. (n.d). McDonald’s ethical issues. Retrieved February 6, 2019, from https://mcdonaldsethics.weebly.com/mcdonalds-ethical-issues.html
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