Business Ethics
Minor Financial Markets

Case 1

McEthics in Europe and Asia:

should McDonald’s extend its response to ethical criticism in Europe?

Introduction
The “McEthics” case describes how Mc Donald’s, the fast food industry’s market leader, faces charges concerning growing health problems in Europe and Asia.
1) Set out the main criticisms that have been leveled at Mc Donald’s in Europe. To what extent are these criticisms likely to be replicated in Asia? What differences can be predicted?
There are four main areas of critique that have been leveled at Mc Donald’s in Europe. First, the products are said to be fat and unhealthy, which fosters health problems, especially obesity and diabetes.
As of now, Mc Donald’s is only known to be vastly successful in the economic perspective of the triple bottom line. Mc Donald’s is also committed to social and environmental perspectives. The Ronald McDonald House Charities for example provide healthcare etc. to children in need. Furthermore Mc Donald’s 2009 Corporate Responsibility Report clearly states how Mc Donald’s tackles the environmental issues and provides examples of Mc Donald’s sustainable supply chain. However this is not what comes to mind when we think about this fast food chain. The solution to Mc Donald’s problem is already in place. The catch is however that no one knows about the corporations’ environmental and social efforts. Through proper marketing strategies Mc Donald’s could earn a much better reputation with very little effort.
5) How sustainable is the fast food industry from the point of the triple bottom line?
The triple bottom line combines the three factors of environmental, economic and social sustainability. The economic sustainability in the fast food sector has been proven in the past by Mc Donald’s balance sheets. Concerning the environmental angle, one can argue that there is room for improvement. For instance in Austria Mc Donald’s is starting to use local products and has sorted rubbish for several years. There are programs in place to aid Farmers become more sustainable,