They can be deemed to represent the business’s social and environmental capital as well as economic. Stakeholders can be of very different and varied guises and also harbor conflicting interests consequently, its image and reputation in the eyes of its stakeholders is critical to the company. Mainly they can be categorized into three major groups: 1) Internal Stakeholders 2) Connected Stakeholders 3) External Stakeholders 4) Stakeholders Conflicts Stakeholders are found in all organizations, businesses or firms – from a local rockery store to huge multinational companies such as Coca-Cola, McDonald’s and Microsoft.
The number of stakeholders per business will vary as will their importance and influence. The type of organization or product / service it supplies will also determine its stakeholders. A public Limited Corporation may have far more stakeholders than a family owned business due to its vast numbers of shareholders. Discussing about McDonald’s, it also hold many stakeholders those who get affected and vice versa. Stakeholders of McDonald’s can be categorized into the three major groups as shown under:
Internal Stakeholders Following are the stakeholders which fall under this category: 1) Managers or Directors 2) Staff or Employees Internal stakeholders are those who are ‘members’ of the business organization. These stakeholders are situated within the McDonald and may affect the ‘day-to-day running of McDonald’s or be affected. Their interest would be in the McDonald ;s success which will alternatively secure their career and assure them for high wages and benefits. Example of the internal stakeholder for McDonald would be as follows: ; The employees/staff member working in the McDonald’s restaurant
Connected Stakeholders Following are the stakeholders which fall under this category: 1) Shareholders 2) Customers 3) Suppliers 4) Finance providers Connected stakeholders are those outside the organization but have a direct interest with the progress of the business. McDonald’s suppliers would want that the business runs and grows well, as this will ensure more supplies to McDonald.
How does McDonald’s social responsibility affects its business and stakeholders? Analyze McDonald s corporate social responsibility for its suppliers and the community. Corporate responsibility means many things to many people. At McDonald’s, being a responsible company means living our values to enable us to serve food responsibly and work toward a sustainable future. The goal of McDonald’s CARS is to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of he public sphere.
Furthermore, CARS-focused businesses would proactively promote the public interest (Pl) by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. By maintaining their CARS policy the leave a great impact on their stakeholders, and ultimately maintains their reputation. This also affects their business in a very positive manner. McDonald’s Corporation is among “Most Admired Companies” for social responsibility. In 2001 it was ranked in the Wall Street Journal as number five in reputation for corporate social responsibility.
McDonald’s social responsibility always focuses on a goal of influencing a behavior change among the community and its stakeholders which is to contribute in improving the environmental and community well-being. McDonald’s CARS policy for its Suppliers As it is assumed, McDonald’s supply chain is large and complex. They have numerous direct suppliers ; companies that make or deliver final products for restaurants. They have an even larger number of indirect suppliers farms and facilities that grow and process the ingredients that get delivered to their direct suppliers.
They envision a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging their leadership position to create a net benefit by improving ethical, environmental and economic outcomes. Ethical – They envision purchasing from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals in the supply chain. Environmental – They envision influencing the sourcing of the materials and ensuring the design of their products, manufacturing, distribution and use minimize lifestyle impacts on the environment.