Fall-2017

MGT 4103- E1 Organizational Development

Case Study Assignment

Obaid Alhumaidi

4151-3078
 Case Study Assignment

Question-1

Introduction:-

Every organization has certain corporate social responsibilities towards its environment.
Normally all business organizations looks only to make profit, but there are other responsibilities rather
than business. The corporate social responsibilities include the production of quality products,
maintaining a good atmosphere and remuneration to the employees, introduction and participation of
social development program, maintaining a status qua etc.

Case Analysis:-

McDonalds, an internationally accepted brand of fast food chain, which has outlets in almost all
countries. The burgers, French fries of McDonalds are very famous. But the case study tells about the
ethical/ corporate social issues created in most of the countries.

These issues can be listed as:-

The protest of McDonald’s employees and the attitude of company management:-

Most of the McDonalds fast food centers are working in round o clock, which means the
employees are working more hours if compared to others. But the company management is providing a
less salary. The employees are not getting enough resting period. They started protest against the
waging system followed in the organization. But the attitude on McDonald’s management was different.
According to them, they provide a better salary and working atmosphere to the employees. The
employees works in McDonalds also faced and insecurity in jobs. The jobs are not stable. In summary,
we can see total violation human rights in McDonalds.

The environmental issues created by MCDonalds:-

There are many company outlets and factories of McDonalds to make the burger materials,
nuggets etc. A huge animal waste has been removing every day. Improper waste processing creates
many environmental issues. Also the plastic packet McDonalds creates environmental issues. The piling
of plastic cutlery items and covers creates many environmental issues.

The negligence of legal regulatory in food production:-

Many country outlets faced issues in the preparation of Mcdonalds food items. HongKong
government recently noticed the usage of outdated chicken the preparation of nuggets and burgers. The
government took actions against this and stopped the making of chicken nuggets and Burgers by
McDonalds. The HongKong government took it as serious and conducted many studies to identify the
quality of McDonald products. They research team found that the McDonalds products are not keeping
any quality as mentioned by HongKong government. This also shows a severe ethical violation.
The fare-trade of McDonalds:-

The company claimed to provide assistance to farmers in the cultivation of coffee plants. The
company also gives technical assistance to farmers in Gautimala, costarica etc supported many farmers.
The collaboration with Technoserve also supported many farmers to cultivate the plants scientifically to
get more and more yield.

The corruption and violation in business practices:

The Hongkong government also noticed that the executive in McDonalds restaurants gets money
from most of the food ingredient suppliers. This executive takes money and buys low quality food
ingredients to make burgers, fries etc

Summary:-

Every organization’s success is mainly depends on maintaining the ethical values in a positive
way. But McDonalds HongKOng and China creates many issues in maintaining corporate social
responsibility. The same situation can be seen in certain outlets in US and UK.

Question-2

Every organization has to take the ethical issues in a serious way. The increase in the ethical
issues will create a bad image on the reputation of the organization. Mcdonalds also has to consider
these ethical issues in a serious way. I like to recommend the following solution to solve the issue as:-

1. The company has to take the food safety issues in a serious way. If the company y
continues the same style, the government will ban it. The McDonalds management has to
appoint a food quality checking officer to confirm the quality of the food items. The
company has to give priority on quality of the food items than any others.
2. There are many outlets in almost all countries. The government of these countries has
to be very much intelligent in evaluating the quality of services, products, etc. The
government has to make sure the cleanliness environment of both employees and
infrastructure. The government people have to conduct surprise visit to these outlets to
verify the food provided by these outlets.
3. The company has to increase the social commitments. McDonalds has to conduct social
services to make the people more aware about the importance of environmental
protection.
4. The organization has to treat the employees in a positive way. The employees have to
provide a positive working atmosphere to get a good result. The government officials have
to take regular visit to maintain the employee’s security. The organization has to introduce
motivational packages and other promotions to enhance the working habits of employees
5. Provide workshops and training to make the employees more aware on the quality of
services and food items. The human resource management has to study the work procedure
 of every employee and make a schedule to maintain uniformity in work. The company has
to increase the procurement plan to avoid the overload of work.

Summary:-

Employees are considered as one of the major part of an organization. The performance of
these employees mainly depends on their infrastructure provided to them. So every organization has to
treat them in a higher level. Secondly yher company has to perform he social responsibilities in a a
positive way.
Reference:-

 Helen Daresk.( 2010 ).International management: across borders & cultures. (7 th edition).
Prentice Hall.
 Lancae Moeir. （ 2002 ） . The importance of CSR(corporate social responsibility?)Corporate
Governance, Volume: 2 Issue: 1 Page: 16-24