Corporate social Responsibilities of McDonalds UAE

Introduction

McDonald is a food company that has established outlets in the global markets. The company has been in operation since 1940 and has diversified in the number of food products it offers to the global markets. The company was established by Richard and Maurice McDonald, and the main goal was to produce hamburgers.

The headquarters of the company are based in the United States, and various subsidiaries have been established in over 120 countries. The company has applied the strategy of franchising, affiliation or corporate operations. These strategies have enabled the company to expand in many countries (Hill & Gareth, 2011). In the UAE, McDonalds has established more than 90 outlets.

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The restaurants are distributed all over the country to serve all customers in the country. The company maintains high quality in offering its products. In addition, the company has maintained a high level of corporate social responsibility. The company has adhered to the legal provisions of the country. It has also improved the welfare of the communities in UAE by supporting orphans and other needy people in the country (McDonalds Arabia, 2012).

Definition of CSR

Corporate Social Responsibility (CSR) is the process whereby organizations regulate their activities so that they can adhere to the ethical standards, legal provisions and global standards. Through CSR, organizations indulge in legal, business activities, improve the environment, provide healthy products and take care of their employees.

In addition, such companies aim at improving the welfare of the communities and all other stakeholders involved in the business. By adopting CSR policies, companies improve their image, and this creates a compelling perception from all the stakeholders. Therefore, CSR is an essential aspect for all organizations (Urip, 2010).

McDonalds’ policy on CSR

McDonalds UAE has practiced CSR in all its activities to ensure it safeguards the welfare of its employees, consumers and all other stakeholders. The company has established various programs to give back to the communities in the regions it operates in by involving in philanthropic activities. The company has also sponsored youth sports and other events which inspire people in the country.

What McDonalds does to carry out their policy

One of the programs which McDonalds UAE has established is to create a partnership with Beit Al Khair Society. This organization takes care of orphans in the country. Beit Al Khair Society was established in 1989 to conduct humanitarian activities in the United Arabs Emirates.

The organization aims at helping the poor and the vulnerable. For example, the organization supports widows, the sick, disabled people, low income families, and people with special needs. The organizations have established partnerships with several; philanthropic organizations in the UAE (McDonalds Arabia, 2012).

McDonalds targeted the orphaned children in UAE by creating a partnership with the Beit Al Khair Society. This program has improved the welfare of many orphans in the country. McDonalds has financed the activities of the organization, and this has been of significant help to the orphans.

For example, McDonalds assisted Beit Al Khair Society to sell children’s books in all restaurants all over the country. There were four published books that were sold by the company across the country through the restaurants of the company. The proceeds gained from the sale of the four books were used in financing the activities of Beit Al Khair Society. The books were written in Arabic and English, and they appealed to children because they had colorful illustrations.

They also had simple stories for children to understand. In addition, the books covered themes in education. Some of the themes included are helping the needy people in the society, balancing life, helping the communities and the significance of education. This campaign was successful, and AED 200,000 was generated. This money was used in improving the standards of the orphaned children in the Beit Al Khair Society (McDonalds Arabia, 2012).

McDonalds established the theme “educate a Child, Support Another”. Through this program, McDonalds donated AED 100,000 to support the children at Beit Al Khair Society. Therefore, the donations were used in educating children at the organization. The main topics of educating children were the importance of sports, eating balanced diets, respect to the elders and environmental preservation (McDonalds Arabia, 2012).

Apart from supporting the orphans, McDonalds has applied other strategies to support the communities in UAE. One of the programs is encouraging people to improve the environment. The company has supported campaigns of green environment. Through these campaigns, the company helps communities protect the environment. The company supports programs alleviate environmental pollution in the country (McDonalds Arabia, 2012).

Agreement with the policies of McDonalds concerning CSR

I agree with the policies established by the McDonalds UAE. Through the CSR policies, the company has helped the orphaned children in the country. The policy was established to help orphaned children get a good education; learn moral value and ethical behavior. This program has improved the welfare of the orphaned children, and it is an excellent move by the company to support the communities in UAE.

However, I tend to disagree with the CSR policies of McDonalds. The company has been accused of selling products which have high cholesterol content. The hamburgers sold by the company are said to fatten people, and this may cause a health risk.

Therefore, the company should aim at improving the quality of its products to reduce the health risk for the consumers. This will help the company improve the welfare of the people i9n the country. The act of helping the orphans is a pleasurable one, but the company should improve on its activities so that it can achieve success in enhancing the lives of the people in the country.

Reflection

I have learnt that CSR is a fundamental activity that should be embraced by all organizations. I have learned that CSR improves the image of a company because it is a form of thanks giving to the community. Corporate social responsibility is a collective responsibility of the company. However, it is determined by the community in which the company is located. Country policies also determine the success of corporate activities of any given firm.

There are a number of theories which helps in explaining corporate social responsibility policies of companies. These include relational or universality, utilitarian and managerial theories. Utilitarian theories focus on how social activities can be used in achieving economic gains for a corporation. Universality theories explain how social investment can be made in the competitive business environments. Social investment is a major part of CSR activities (Ismail, 2009).

Conclusion

Corporate social responsibility is the process through which companies improve the lives of the communities around their areas of operation. Through CSR, companies help the needy people, improve the environment and create better structure for the welfare of the people in the community.

As such, McDonalds has established strategies to help the communities in UAE by financing orphans. This has been achieved by establishing partnerships with NGOs and other organization in the country. McDonalds has developed strategies to improve the welfare of the orphans by donating finances to educate orphaned children. However, the company should improve its CSR because there are many ethical questions being asked to concern the quality of products sold by the company.

References

Hill, C. & Gareth, J. (2011). Essentials of Strategic Management. South-Western Pub.

Ismail, M. (2009). Corporate Social Responsibility and Its Role in Community

Development: An International Perspective. Retrieved April 24, 2012 from: http://www.sosyalarastirmalar.com/cilt2/sayi9pdf/ismail_maimunah.pdf

McDonalds Arabia (2012). Corporate Social Responsibility. Retrieved April 24, 2012 from: http://www.mcdonaldsarabia.com/uae/en/the_truth/our_communities/corporate_socialresponsibility.html

McDonalds Arabia (2012). Our History. Retrieved April 24, 2012 from: http://www.mcdonaldsarabia.com/uae/en/the_truth/our_history.html

Urip, S. (2010). CSR strategies: Corporate social responsibility for a competitive edge in emerging markets. Hoboken, N.J: Wiley.