The food industry is among the most profitable fields due to the constant demand from customers. Despite the global challenges, people will continue to use the services of food chains and stores. As a result, giants like McDonald’s and Starbucks, as well as others, endure sick leave problems, disciplinary issues, or decreased performance. McDonald’s is not the exception in the given circumstances and had to undergo litigation processes for improper management approaches. Thus, while McDonald’s is one of the strongest franchises, it has managerial issues that lead to the evolving issues of employee complaints and, consequently, to the emerging issue of dissatisfaction among certain stakeholders.
When it comes to McDonald’s operations, it works in a highly competitive industry, which is food service. Among the competitors of the company are Starbucks, Taco Bell, Wendy’s, and Burger King. In order to maintain its reputation and competitive edge within the industry, each company must provide unique services. For example, McDonald’s stresses that its goal at the company is to nourish and support local communities, offering affordable food prices (Mcdonald’s, n.d.-c). However, within the industry, there are both evolving and emerging issues that might disrupt any company’s operations. For instance, among the evolving issues are employee retention issues. In addition, among the emerging issues are employee protection problems, which result in staff dissatisfaction with workplace conditions. McDonald’s is one of the companies that experience such challenges.
The general approach of McDonald’s, as well as its business strategy, seems to be compatible with ESG practices. For instance, the company asserts that it understands the necessity of ESG and incorporates it with four Impact Areas. McDonald’s claims that it has defined plans, targets, policies, and success factors within certain Impact Areas to oversee its effectiveness (McDonald’s, n.d.-a). Current ESG approaches of the organization involve the ones of governance, stakeholder engagement and public policy, business resilience, and contributing to the UN sustainable development goals (McDonald’s, n.d.-a). Therefore, it is evident that McDonald’s strives to be the most significant community contributor by not only acknowledging the necessities of the public but implementing ESG methods personally.
However, while the company claims that it is concerned about the public good, it fails in terms of managerial efficiency. McDonald’s is currently known as a firm that fails to satisfy the basic needs of employees in the context of the global pandemic that still has not ended. Therefore, the central managerial issue of McDonald’s is countless complaints, which is an evolving issue. According to the position of staff in the lawsuit, in 2020, management failed to provide the necessary equipment to the employees in order to protect their health (Wiessner, 2021). The litigation process continued until 2021, when it was found that management provided staff with dog diapers and coffee filters to wear as face masks in a McDonald’s Corp location in California (Wiessner, 2021). Thus, this is one of the significant challenges of the company that it claimed to resolve.
After the lawsuit in 2021, McDonald’s has committed to take action to safeguard workers against COVID-19. To resolve the issue, from a management and business strategy perspective, the franchise stated that it would give workers compensated sick time, masks, and gloves, promote social distancing, routinely sanitize surfaces, and mandate that employees experiencing COVID-19 symptoms stay at home (Wiessner, 2021). From an ethical standpoint, the franchisees have additionally agreed to set up a safety procedures board, forcing the owner and managers to have regular meetings with staff members to talk about how to keep a safe working environment (Wiessner, 2021). The agreement was reached as COVID-19 cases in the United States have increased as a result of the emergence of the very infectious Delta form (Wiessner, 2021). McDonald’s said that it would mandate immunizations for all office staff stationed in the United States (Wiessner, 2021). While having a positive effect on stakeholders, such as customers and investors, these issues still had little positive influence on the employees. Despite the firm’s allegations that it will improve the quality of the workplace, the issue of constant complaints continues to persist, with news discussing harassment, lay-offs, and sick leave complaints from the employees. As a result, it can be seen that the emerging issue of McDonald’s is the growing dissatisfaction among the employees.
As for the alternative options that could resolve the given issue, the franchise could implement not only direct provision of safe space but include mental health benefits. For example, one of the firm’s competitors, Starbucks, is providing its employees affected by COVID-19 with complete support and all-encompassing treatment, including vaccination pay, crisis pay, psychological health and sick pay benefits, childcare help, and more (Peiper, 2022). As a result, it is vital to include a holistic approach to the staff and ensure that both their physical and psychological needs are met.
Hence, while McDonald’s expresses a commitment to the community, it does not create a safe workplace for its employees. It believes in establishing relationships with customers, staff members, franchise owners, and suppliers. It is clear that McDonald’s overall philosophy and corporate strategy appear to be in line with ESG norms. Still, the management effectiveness of the organization is a weakness. In light of the ongoing worldwide pandemic, McDonald’s is today regarded as a company that fails to meet the fundamental demands of its employees.
References
McDonald’s. (n.d.-a). ESG approach & progress. Web.
McDonald’s. (n.d.-b). Our business model and growth strategy. Web.
McDonald’s. (n.d.-c). Our purpose & impact. Web.
Peiper, H. (2022). At a glance: What you need to know about Starbucks response to COVID-19. Starbucks Stories & News. Web.
Wiessner, D. (2021). McDonald’s franchise settles workers’ COVID-19 lawsuit as U.S. cases surge. Reuters. Web.