Social Responsibility

Topics: Social responsibility, Corporate social responsibility, Stakeholder Pages: 6 (2180 words) Published: August 14, 2008
“The social responsibility can be defined as the obligation of the organization to act in ways that serve both its own interests (making a profit) and the interests of its stakeholder.” (Sandy Millar, Christopher Theunissen, 2008, P69) Socially responsible organization takes action to ensure that their activities do not affect any of the stakeholders in a negative way. The McDonald’s is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each day. It is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually. McDonald’s with a high level of social responsibility goes one step further, they take action to ensure that stakeholders benefit from their actions. They can use four different approaches, which include proactive approaches, defensive approaches, accommodative approach, and obstructive response to social responsibility. Moreover, the total corporate social responsibility can be subdivided into four criteria – economic, legal, ethical and discretionary responsibilities. “A stakeholder is any group within or outside the organization that has a stake in the organization’s performances. Each stakeholder has a different criterion of responsiveness, because it has a different interest in the organization (King & Roberts, 1989; Donaldson & Preston, 1995).” (Danny Samson, Richard L. Daft, 2005, P165) The need for a business to be responsible for its actions is widely accepted. Businesses do not exist in isolation; they provide goods and services to people and make use of materials and labor supplied by people. Businesses have responsibilities to stakeholders to ensure their actions do not cause harm. The McDonald’s organization, for example, has a responsibility not only to its customers, but also to the employee, shareholders, suppliers, community and competition etc. An organization’s customers play an important role in determining the products and services it will provide. Without customers, there would be no need for the organization. Then, of course, there are the staff, who provide the services to the customers. Food supply chain is the one of the stakeholder in McDonald’s organization. The McDonald’s organization works with suppliers to produce high standards of food. McDonald’s has to compete to some other fast food restaurants, such as KFC, Wendy’s etc. The McDonald’s organization is a good corporate citizen and works closely with local communities in the locations where it operates. McDonald’s adheres to laws regulating wages, hours and working conditions to the stakeholders of government. But these are only six of the stakeholders in the McDonald’s organization, there are many more. Therefore, stakeholder is the term used to illustrate the universe of people and organizations that have a vested interest in a particular effort. “The proactive response comes from firms that take the lead in social issues. They seek to learn what is in the public interest and respond without coaxing or pressure from stakeholders.” (Danny Samson, Richard L. Daft, 2005, P173) Proactive response is one of the four ways a management may choose to respond to environmental and social problems its activities have caused. Proactive responses have the highest degree of social responsibility. Organizations give responses before any issues addressed by the public and without any external pressures. They show a great interest in enhancing society welfare and very good social image. They integrate their interest with the public interest. “Asked why McDonald's was sponsoring Euro 2004 by a deal worth £15m, Jeff Wahl, the company's director of worldwide marketing, said: "It's important that we build brand loyalty with kids, sponsorships like Euro 2004 are a great way to accomplish this." Moreover, we always see the advertising that McDonald’s...
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