Strategic Philanthropy Project
Introduction: Strategic philanthropy is an endeavor of the company in aligning its goals and markets with social responsibility in the community. McDonald’s company has effectively participated in corporate social responsibility (Goodsearch). The company has demonstrated a continuous trend in changing the world. The area of concentration has been environmental conservation and community social services development. To achieve this, the company works in unison with suppliers and its owners or operators.
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According to Kotler and Lee, McDonald’s CEO Jim Cantalupo in 2003 stated that the program of McDonald on social responsibility has no basis of season endeavors, but it is a continuous process for the company. The CEO further claimed that McDonald business activities would continue to occur in line with acting responsibly. That is the company has a commitment of acting in a social responsible manner throughout (7). Corporate Social Responsibility model applies to all businesses, organizations and institutions irrespective of their nature.
As such, their operations need to incorporate the element of corporate social responsibility in order to develop the society. However, the key focus in recent discussions has a basis in large companies and government departments. This is because large companies are associated with a well-developed financial strength; therefore, they are expected to give back to the society in an unlimited manner. This minimizes the chances of emerging businesses, organizations or institutions adopting Corporate Social Responsibility. Giving back to the community: McDonald Company has participated actively in giving back to the society.
In this, McDonald Company is involved in the creation of Ronald McDonald House Charities (RMHC). RMHC has inherent programs, which address well being and health of children (Goodsearch). These programs include Ronald McDonald House program, Ronald McDonald Care Mobile program, and Ronald McDonald Family Room program. RMHC has opened doors to a wide network around the world reach a large community with different needs in the world. The program has a number of more than 270 houses in at least 30 nations that create a room for shelter of thousands of families.
The program provides a home to the homeless each night. The mobile program on its side consists of 31 Care Mobile programs in at least four nations. The program ensures that undeserved children in their locality receive education, dental and medical services. The services delivery occurs through the provision of fleet vehicles. Finally, the family program consists of 110 Family Rooms distributed in at least 13 nations. These rooms ensure that hospitalized families enjoy an adequate time with their children (SAGE Publications 18).
The program ensures that families have all the time needed in a family life for recreation purposes. As such, the tie between the parents and children is never broken. McDonald has an effective system to facilitate giving back to the community which conducts annual global fundraiser; the theme of fundraising being World Children’s Day. Since 2002, the initiative has collected an approximate value of $100 million. The amount finds use in charities designed for children and RHMC (Kotler and Lee 40). This program has effectively aided the company in raising funds to meet most of its community-based projects.
Relief efforts: McDonald has demonstrated an effective effort in responding to disasters. The devastating 20110 earthquake left the people of Haiti vulnerable as never before. Thanks to McDonald’s and its sister company, Arcos Dorados which operates relief effort, all McDonald food chains in Latin America region contributed 50 cents on each sale of Big Mac sandwiches and Big Mac Extra Value Meals they made toward relief efforts in Haiti. The company’s customers, suppliers, and employees took part in a fund drive that raised a total of $ 1,147,000 million.
Through the board of directors, McDonald Corporation donated a total of $ 500,000 million towards the relief in Haiti bringing the total contribution to $ 1,647,000 million. The funds were channeled successfully to Haiti through charitable organizations such as the Red Cross Federation for relief efforts (AboutMcDonalds. com). Developing lifestyles: Human beings have a dire need of living lifestyles that encourage them to be productive. On realizing this need, McDonald develops an initiative of improving the lifestyle of the community.
In this initiative, McDonald has a program that focuses in creating a well-being of families and their children globally. The program is called Balanced, Active Lifestyles program. The program relies on the safety and food quality system of the company. The steers of the program are personnel in the field of fitness, public health and nutrition. The program advocates for an effective selection of the menu for food that leads to health development of individuals. In addition, the program outlines the variety of menu in existence for making choices.
The Balanced, Active Lifestyles initiative, has the effect of compelling the community to associate itself with McDonald products. As such, McDonald effectively develops its brand with no need of using other promotion means. The initiative also results in building of the customer loyalty. Promotion: According to Kotler and Lee, McDonald was a key sponsor of 2000 Olympic Youth Camp (38). The program brought approximately 400 youths to Sydney, Australia from various regions, in the universe. The youth took part in sports, art and inter-cultural practices.
In addition, McDonald sponsored National Olympic Committee (NOC), which had a task of youth selection from nearly 200 nations. These youths were to take part in the Olympic Youth Camp. The winners of various events in the Olympic Youth Camp received honors from McDonalds in the form of international news. The results of the event led to McDonald advocating for support of the youth so that they can bring back to their communities through their outstanding activities. McDonald further sponsors approximately 500 youth football teams (Europa 290). In this, McDonald provides the teams with football kits.
In addition, McDonald sponsors Family Areas in football stadiums. This endeavor of McDonald’s in participation, in sponsorship of social activities, leads to gaining of a positive public image. Environment: McDonald has an established environmental program, which focuses on supply chain practices and operations in the restaurant-level operations. The supply chain focus is on Environmental Scorecard for processors and Sustainable Global Fisheries. In addition, McDonald has active participation in preservation of Amazon rainforest vulnerable areas.
To undertake this measure, McDonalds collaborates with other environmental stakeholders, such as Greenpeace and suppliers. The combined effort aims at attaining global social responsibility including animal welfare and taking into consideration of the supplier employment practices. Operations in restaurant level, which aim at environmental conservation, include effective recycling of the restaurant waste, control and minimization of the use of electrical energy, and minimization of packaging materials use (Bolton and Benn130).
The endeavors of the company to conserve energy effectively so to it the company earns the EPA’s 2007 Energy Star Partner of The Year award (Goodsearch). In participating in environmental conservation measures, McDonald acts in line with the global calling of adopting green technology for safer environment creation for future generation. How McDonald’s could leverage its expertise to address social causes: Leverage is a key factor that influences strategy decisions and ensures that the strategy process has value (Lele 5).
McDonald Company has a large pool of competent and highly skilled staff. However, the company has ineffectively used the staff in idea generation process. As such, the company should focus on identifying what the staff knows, the various interests of staff, and use the staff to contribute in idea generation for the company. This should occur in line with job responsibilities of the staff, and the process results in identification of new ways of addressing social causes. The company has also not included the customer base in the decision-making process (Holtz, Havens, & Johnson 154).
Therefore, there is a need of the company to collect consumers’ opinions and advice as it strategizes on how to address social causes. This benefits the company through brand creation of its products and development of customer brand loyalty. As such, responsible purchasing results from the customers. Finally, McDonald should venture effectively in culture experimentation and development of legacy from projects within the community. In this, McDonald Company should ensure that it undertakes small projects also apart from the large projects.
This should occur in line with the established market segmentation. In addition, the company may use price change technique, development of product changes, and selection of new channels as a way of addressing social causes. Conclusion: A company that engages in social responsibility, in the community, earns a high reputation from the community. This reputation acts as an asset for the company in times of a crisis. McDonald has benefitted in this kind of social responsibility reputation. Kotler and Lee argue that, in 1992, there were riots Central Los Angeles (15).
The rioters harmed businesses in the area, but spared the 60 McDonalds retail outlets. Positive press reports form another benefit that McDonald gains from acting in a social responsible manner. In addition, an established corporate social responsibility acts as a guiding aid for policy makers. McDonald has benefitted from this since the policy makers of the company steer the company into a bright future. The involvement of McDonald in various issues that relate to the community and environment has earned the company an outstanding public image.
As such, the company brand development and awareness takes place effectively with minimal cost; this results in development of the profit margin of the company. McDonald, therefore, sets a good example for other companies to adopt in order to develop the community and earn a reputable public image. Cited Works Bolton, D, & Benn, S. Key Concepts in Corporate Social Responsibility, New York: SAGE Publications Ltd, 2011. Europa. The International Directory of Corporate Philanthropy. The First Edition. United Kingdom: Europa Publications, 2002. Goodsearch. Companies Doing Good. 011. Retrieved from: http://www. goodsearch. com/cosdoinggoodpage. aspx? goodid=10 Kotler, P, & Lee, N. Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. Hoboken, New Jersey: John Wiley & Sons, Inc, 2005. AboutMcDonalds. com, Values in Practice, 2011. June 25, 2011. SAGE Publications. SAGE Brief Guide to Corporate Social Responsibility. United Kingdom: SAGE Publication, Inc, 2011. Lele, M. Creating Strategic Leverage and Matching Company Strengths with Market Opportunities. United States: John Wiley & Sons, Inc. 1992.