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Corporate social responsibility: McDonalds and KFC

Paper Type: Free Essay Subject: Marketing
Wordcount: 2941 words Published: 19th May 2017

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World Business Council for Sustainable Development in its publication “Building Business Sense” Lord Holme and Richard Watts, use the following definition. “Social responsibility is the continuing commitment of businesses to behave ethically and contribute to economic development, improving quality of life for employees and their families and local communities and society as a whole”

In the same report was evidence of different ideas about what ought to be made from many different companies around the world. Definitions as varied as “COP on capacity building for sustainable livelihoods. It respects cultural differences and find business opportunities in the development of skills of workers, communities and governments of Ghana, on” CSR in the company to give back to society “from the Philippines.

Traditionally in the U.S., CSR has been defined in the model much more philanthropic

On the other hand, the European Commission guarantees its rate on the two definitions in one: “the concept that companies voluntarily decide to better society and cleaner environment, a concept that corporate social and environmental issues, to promote their business. In their interaction with stakeholder’s voluntary basis”

When we checked back every one of them, they agreed that the definition is currently focused on the impact, as the economic base. Some go farther than others, to predict how many companies operate a green light for the operation of their own influence on the topography, especially outside the home, help in achieving the goals of society as a whole. There is a significant difference, when many entrepreneurs believe that their companies are ill-prepared to pursue social objectives of incubators and activists argue that society is not democratic authenticity to take such a role. This is particularly the discussion will continue.

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Introduction – McDonalds

1954, the supplier of machinery fifty-two seen milkshake diner in San Bernardino, Calif., and saw a huge new industry: fast food. In what will be his golden years, showed Raymond Kroc, the founder and builder of the corporation McDonald’s, The advance of industry, for example, no less capable than Henry Ford, who revolutionized the American restaurant industry rules magnificent production of hamburgers, French fries French and milkshakes. Bought developing complex operating system and delivery, he assured that customers bought French fries in terms of Topeka to New York will be. This consistency makes the brand of McDonald’s, which defined the American fast-food restaurants.

McDonald’s mission

McDonald’s is a mission that is the preferred place for our clients, and inspiration to people who eat the joy of each client unsurpassed quality, service, cleanliness and value every time We invite you to become part of this winning team and give you the opportunity to provide a family with the smiles grow on behalf of millions of people every day


Introduction KFC

The company was founded as Kentucky Fried Chicken, Colonel Harland Sanders founded in 1952, when the idea of KFC fried chicken dates back to 1930. The Company has adopted an abbreviated form of his name, KFC, in 1991 [2]. Since April 2007 the company began with its original name Kentucky Fried Chicken again its signage, packaging and advertising in the U.S. through a new corporate rebranding, [3] [4] and the new restaurants will be transformed into a new logo and name while older stores will continue to use 1980 signs. The company also uses the abbreviation KFC freely used in its advertising. International company is still known as KFC.

3.2 current situation of KFC

Analysis of the situation, we have analyzed the situation in the market that KFC faces in terms of company / product, competition and consumers. We have presented our own ideas for which we have seen, placed trends or patterns. Further, we must understand, a survey for students on the market. We focused on the perception of health for consumers KFC, its products, competitors and competing products. Then we have our first series of groups plan to investigate the projections should

4 . CSR ANALYSIS – Carol and Sethi models

Model of Carroll and Sethi – the first models of social responsibility

With regard to Sethi (1975), Tri-State model the behavior of companies that he created are classified as “social power”. The three countries conduct of companies based on:

social Constraint

social responsibility

public awareness

Sethi The second condition requires companies to recognize the movements and, in response to the expectations of society. The third assertion of claims that the company develops the competence to work effectively with stakeholders and specific action on their issues and concerns are growing Sethi also emphasized the cultural and temporal dependence of corporate responsibility and the importance of sound management and classification for easy measuring and evaluating progress.

Model-based Carroll Sethi (1979) model, which includes the following four categories of corporate responsibility in reducing the degree of importance, is proposed:

a) To be economically viable;

b) Legal – to obey the law;

c) Do what is moral and just and equitable without interference;

d) Discretionary / philanthropic “good corporate citizen.

In 1991, Carroll’s model of CSR as a pyramid, and suggested that, although the mechanisms are not mutually exclusive, it “allows the manager to see that with different types of linkages in constant fear of others.”


CSR issues

a. Legal responsibility

Liability related to obey the laws and regulations,

Civil rights: the rights and responsibilities of individuals and organizations

Criminal law: no special measures to break and the imposition of fines and / or imprisonment as punishment for the law

b. Ethical responsibility

Behaviour and actions planned or approved by the members of the organization and the community and society.

Standards, norms and expectations, which reproduce the interests of key stakeholders

c. Economic responsibility

How much resources are allocated for the production of goods and services in the social

Do you think that consumers favour socially responsible companies, or are they more in love with the greatest profit of the company?

5. Corporate social responsibility at McDonald’s

5.1 McDonald’s Value

Our values are represented in the “QSC & V”. For good quality services to customers Do you have a clean environment, while the customer enjoys the meal. The value of food does each customer smiling.


We are customer satisfaction in the heart of what we do

We are committed to our employees

We believe in the McDonald’s

We conduct our business ethically

We provide our communities

We grow our business profitable

We strive to constantly improve

5.2 Apply the model of CSR at McDonald’s

“This process shows that McDonald’s made and its suppliers to continually improve our service to sustainable development. We have dozens of” green laboratory “, which is in development and testing of environmental innovation, to share in the society and the scale where it makes sense “said Bob Langert, vice president of corporate social responsibility.” At the same time to take our suppliers’ ingenuity to help us, our vision of a global sustainable supply chain development best practice in everything from employee well-being, climate change and energy for animals. All of these events very good for our business and the world in which we operate”

The best examples of sustainable supply chain include:

Taming the wind: In the UK, supplier of McDonald’s McCain Food turbines storm in a French fry plant to supply up to 60 percent of annual electricity consumption in the operation of the facility per year, reducing emissions 10.000 tonnes of CO2 in 2009. If the plant does not work, the world power in the national network for sale.

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The energy of potatoes: In Austria, a provider of McDonald’s, and fresh frozen solid by-product of potato and turn it into gas, and the remainder of the process for farmers who use them delivered as a natural fertilizer. The plant produces about 6 GWh of energy per year, and 2000 homes with electricity and saves 30 percent of electricity on the spot.

5.3 Apply the model of CSR at KFC

Researchers Colonel

make KFC Colonel Scholars Program © is to visit for high school graduates to consumption, strong endurance, financial needs and the upper stage at an accredited educational institution in the country and live where they want.

KFC Colonel Scholar’s program is designed for you to succeed your dreams and aspirations, and perseverance. This program is for seniors who visit the state schools are represented in the state or university. Students who meet the criteria can apply online to become a KFC Colonel Scholar. Students for this scholarship are selected to participate receive up to $ 20.000 to a bachelor’s degree.

Social diversity

For us, diversity is not a goal – a lifestyle and way of doing business. Everyone can and does make a difference in our organization. One of our principles HWWT2 – believe in all people – emphasizes the importance of actively seeking diversity in others and believe everyone has the potential to make a difference, training and support for the development of each person to make their full capacity. This adds perspective and depth of what we do. We also found that the various teams is to solve it, all the services our customers more efficiently and creates a rich culture for us all to enjoy.

Code of Conduct

YUM! Brands, Inc (“Yum”) agrees to act in its business in the ethical, legal and social responsibility. To ensure compliance with all laws and ethical business practices, Yum this Code of Conduct adopted by providers (the “Code”) for U.S. suppliers Yum (“Suppliers”).

Compliance with Laws and Regulations

Providers must comply with all laws, codes or regulations, including, without limitation, all applicable local, state or federal laws regarding wages and benefits, accidents, working hours, equal opportunity, worker and product safety. Yum also expects that vendors in accordance with the standards of their practice in the industry.

Packaging and the Environment

KFC also for the environment, we focus on our food and our customers. Learn more about the steps we have made in our environmental footprint and improving plans to reduce the front.

Program for Animal

Yum! Brands, parent company of KFC, it was committed to humane treatment of animals.

YumBrands owns a restaurant, which by itself does not raise or transport animals. However, as the main purchaser of food, we have the opportunity and obligation to the way animals supplied to us will be considered influence. We take this very seriously and we are monitoring our suppliers, the question is regulated in order to identify suppliers using humane procedures for the care and treatment of animals they supply to us. Accordingly, it is our goal, but not with suppliers who share our high standards to maintain our commitment to the welfare of animals involved transaction.

6 Market share

6.1 McDonalds in the UK

McDonald’s is the largest catering company in the world. The company sees itself as the leading global food distribution. With more than 30.000 restaurants every day, more than 47 million people in 121 countries, it is difficult to argue! In 1974, McDonald’s opened its first restaurant in the United Kingdom. As at 31 December 2001, operates McDonald’s and its franchisees in 1184 restaurants in the UK.

McDonalds will continue to succeed in 2009 and contribute to the further it is better not to focus only bigger. McDonalds need a further deepening of understanding of consumers and this will affect the promotion of greater sharing and implementing best practices and new ideas in the world, and through a strategic approach to the implementation of the initiative need to do to drive the best line.

Despite the difficult economic conditions, the system McDonald’s, supplied by our momentum as a world power today. McDonalds continue to rely on their strength to build in five key areas: maintaining a balance between price and value, maximizing the benefits of existing capital by increasing the relevance and contemporary aspect of our existing restaurants, which use the capital and the unique taste of a simple menu of favourites such as Big Mack, the area is provided with cheese and our famous French fries Pounder on our financial discipline and to assess the success of these measures, the origin of measures to promote the positive impact of our restaurants and operational excellence by focusing on more effective implementation.

6.2 KFC in the United Kingdom

KFC, a restaurant in the world’s leading chicken, it was up to 9000 jobs in the UK, Å“150-OE100E dollars invested in their field, which is to monitor the opening 200 new stores -300.

In the next three to five years will create up to 9000 new jobs KFC across the country with special emphasis on the north of England and South Wales. New jobs will be several opportunities for people of all ages and abilities cooks Manager.

Customers tend to choose a restaurant; they eat less, depending on the quality, speed and variety of elements. KFC customers are very price sensitive and go elsewhere if it is not necessary to find a value price. You can also people who want to be served quickly and will be characterized by the restaurant as soon as possible.

Market share

KFC has a long history and recognize the best mark in the chicken with more than 50% market share. It is difficult for companies like Sub, McDonalds, Chicken Planet, Dixie, or those at the fast food market in force.

With more than 50% market share in the KFC fast-food industry is recognized worldwide and global sales for many years in Pakistan and gain market share in the philosophy of Pakistan takes the field.


Depending on the outcome of this appointment, I can conclude it’s better than KFC in the UK based McDonalds Increased range of products. To include more variety to choose from more deserts and other items such as pizza McPuff, It should continue to provide better service and faster. With the lower supply chain costs are so that they contribute to cost reduction.

MCD is ready to extend its Happy Meal choices to win and retain customers, and may also McCafees introduction of gourmet and specialty coffees and other drinks and other foods such as cakes, cookies, etc. in the existing McDonald’s. Focus training on gifts for all the young generations, children, especially older people who are totally new concept. MCD should Shares offered during the festival. You should increase the space for space’s birthday and to try to college festival sponsor.

After analyzing the marketing mix from McDonald’s, it is clear that the company, as a “global”, ie combination of elements of globalization and internationalization can be described. McDonald’s have achieved this by applying the principle “think globally, act locally”

7. Recommendation

As a result of this evaluation, I recommended these things such as

KFC is expected to rise their CSR activities

these two companies should be contribute to reduce the poverty in poor countries

they are consider about the culture of the countries which they are working, it should be increase their sale

8. Conclusion

Increase its product line. To have more variety to choose from, to include more deserts and more items like Pizza McPuff. It should continue to provide better and quick service. By lower the supply chain cost so that it helps in cost reducing.

MCD is willing to expand their Happy Meal choices to attract and retain customers& can also Introduction of McCafees serving premium and specialty coffees and other beverages and other products such as cakes, pastries etc in the existing McDonald’s. Focus on gifts for all generations i.e. youth, kids’ especially senior citizen which is a completely new concept. MCD should provide special promotions during festivals. They should increase the space for provision of birthday party areas& try to sponsor college festivals.

After analyzing the marketing mix of McDonald’s, it is clear that the company can be said to be `global’, i.e. combining elements of globalization and internationalization. McDonald’s have achieved this through applying the maxim, `think global, and act local’


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