Stakeholder Management

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Stakeholder Relationships

Brief
To produce a set of recommendations in a written document about how McDonalds PLC, can reduce its carbon footprint through the management of key stakeholder relationships. Introduction
McDonald’s PLC, is one of the largest fast food chains in the world, with 32,000 outlets in 117 countries. In the UK the first restaurant opened in 1974 and now in the UK stores alone, the chain serves 2.5 million customers daily. In the early 2000’s McDonalds saw for the first time some of its outlets closing, and drastically had to rethink the way that it operated. It was struck with a damaging title of the firm that didn’t care with non-eco-friendly practises, (the ecologist: 2011) and with the negative publicity from Morgan Spurlock’s 2004 film, “Supersize Me”. With this in mind, Mr Easterbrook, Chief Executive Officer 2006-2011 decided to radically re-launch the brand deciding to move McDonalds towards being healthier and a more ecological company with a lower carbon footprint. Stakeholders and McDonalds

The classic definition of a stakeholder is: “any group or individual who can affect or is affected by the achievement of the organisations objectives”. (Freeman 1984: p46) meaning in simpler terms as quoted by (CIMA 2008: p6) “Those persons and organisations that have an interest in the strategy of the organisation. Stakeholders normally include shareholders, customers, staff and the local community. However, Stariks contribution of stakeholders covers the widest of areas. He suggests stakeholders could be “any natural occurring entity which affects or is affected by organisational performance”. (Starik 1994; p90) This statement includes anything from living from plants to animals; it also includes non-living environmental forms such as rocks and water but does taking the ecological stance i.e. using bio fuels actually support the stakeholder? One could agree with Starik’s comments, that from any naturally occurring entity is a stakeholder. Imagine a North Sea Oil rig, without the ocean, the ocean is used to cool the process of extracting the oil. Without the ocean this piece of machinery would not operate, neither would the wind farms on the East Coast. The wind that the ocean creates makes the wind turbines turn. From this, the belief should be that natural entities are stakeholders. This then gives to the question: How can these entities be managed? In the case of McDonalds, they are managing these stakeholders by creating Bio-Diesel to run their fleet of delivery truck in Denmark from the old cooking oil from their restaurants thus understanding what a natural stakeholder is. From these three statements the stakeholders that should be included into the McDonalds inventory are wide and vary considerably. It is without doubt that that we can consider stakeholders to be people and organisations, as well as outside influences, including the environment that has an input into: * What the company does

* How and with what objectives can be achieved
* What you could achieve
* When it can be achieved.
McDonalds PLC would need in the first instance to identify and understand its stakeholders and where they would lie, with what power they had, which would help the company in its decisions and outcomes. Members of one stakeholder group could quite possibly overlap into a second group. They all have a legitimate interest in the company, some more than others, some with more power at help the company achieve its goals. Looking at the stakeholder groups behind McDonalds, they can be placed into one of two categories: External Stakeholders

External stakeholders exist outside of the organisation but have a direct interest in what it does. Internal Stakeholders
Internal stakeholders are those that work inside the organisation. Within McDonalds there are a number of internal and external stakeholders. These are shown within the “onion” graph below and where they lie within the McDonalds...
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