ayinportfolio.files.wordpress.com viewThis case study will analyze McDonalds’ initial CSR-oriented A-Z campaign through CSR theories and concepts. ... claimed about how badly its

Yin Ningwei Public Relations and Communications 570516

Student Name: Yin Ningwei

Student Number: 570516

Lecture: Dr Barbara Inglis

Case study-McDonald’s Skeptical Healthy and Nutrition Food

Executive summary

This case study will analyze McDonalds’ initial CSR-oriented A-Z campaign through

CSR theories and concepts. My argument is about discussion about whether the A-Z

campaign is a ‘true’ CSR campaign. The CSR campaign is a PR campaign launched

in the UK supported by an online advertisement, webpage communication and

processing CSR activities such as litter patrol, MAAP program and employee skill

education. The campaign was lasting for over six months and aimed reassure the high

quality of McDonald’s food to parents and highlight CSR commitment. CSR as a

new rising concept in PR industry, it mainly promotes the environment and social

welfare, aiming primarily to build sustainable society as well as the business. CSR

communication is one major part of CSR activities, which will be a main dimension

of my evaluation of McDonald’s campaign. The analysis of the case will base on two

major parts: first is the evaluation phrase of the CSR campaign depending on differing

opinions of literatures, the second is focused on the goals and outcomes

measurements of the Campaign. By my analysis of the study, the A-Z campaign is

more like a trial of CSR campaign but not a ‘true’ one that needs further commitment.

The Organization

Dick and Mac McDonald opened the first drive-in restaurant with a menu of nine

items in 1948. McDonald's now primarily sells hamburgers, cheeseburgers, chicken,

French fries, breakfast items, soft drinks, milkshakes and desserts. In order to

appealing to changing consumer tastes, the company has included salads, fish, wraps,

smoothies and fruit in its menu.

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According to the company’s website, McDonald’s positions itself as global leading

food service retailer. And McDonald's brand mission is to be customers' favorite

place and way to eat and drink. As Lubin and Badkar stated, McDonald's has not

been affected by the recession and acted as an unstoppable global force. The fast food

giant reaches in 119 countries and serves over 75 burgers every second over the world

(Side Dish). As a giant business, McDonald’s provides job opportunities to 1.8

million people over the world, and one in every eight American workers estimated by

1996 (McDonald's own estimate in 1996 via Fast Food Nation). Numerous

independent suppliers collaborate with the Company to satisfy the needs of being high

standard and specific (SEC). The Company franchises and operates McDonald’s

restaurants. It operates 33,510 restaurants in 119 countries, 27,075 of which are

franchised or licensed and the Company operates 6,435.

The issue

Although identified as the Top 10 valuable brand over the world, Macdonald’s cannot

escape from being claimed about how badly its core product-food impact on people,

which is a threatening issue of fast-food industry.

In the 1990s, Fast Food Nation *(2003) and Supersize Me (2004)* had been plenty

sources for written and broadcast to tarnish the golden arches’ shine (Salisbury,

2011). Here I take a bad example of PR reaction by McDonald’s regarding the

release of film Fast Food Nation “We have media days and fact sheets that are

available through our web site, as well as platforms that will afford us any opportunity

to talk about what’s important to McDonald’s. We cannot be overly concerned about

anyone else (Riker,2006).”

As a food maker, the main ethical criticism is about the food McDonald’s offering to

people and it is a consistently one that challenges the organization. What are the

ingredients of the food, healthy and natural? There are claims about McDonald’s

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contributing to obesity of people and child, claims about using genetically modified

food, claims about targeting child as to build their diet habit. It’s been effective to

target child that approximately nine out of 10 American children eat McDonald’s and

even before they can speak, they recognize McDonald’s (Robbins, 2010).

And in 2010, Physicians Committee for Responsible Medicine (PCRM)'s launched

"Consequences" (http://www.youtube.com/watch?v=Mx0IJnO3o8g) ad takes dead

aim at McDonald's high-fat menu. It warned some health risks: heart disease, Type II

diabetes, high cholesterol, and high blood pressure. With almost one million views on

YouTube as well as worldwide newspaper and broadcast coverage including the New

York Times, The Guardian and CNN, the ad warned and changed people’s attitude to

their diet in part (Robbins, 2010).

Criticism about McDonald’s food is lasting even though many efforts had been made

to clear it from providing dangerous food for the society.

Public Relations Function

In this case, the function of public relations it best reflects is stakeholder relations

management. Primary organizational stakeholders include employees and managers,

customers, suppliers, and the firm’s owners (Harrison, Bosse & Phillips, 2010).

Stakeholder management is a strategic performance of corporations as constructing

good stakeholder relations relates to the acquisition and development of competitive

resources (Dyer and Singh, 1998; Gulati, 1999).

From a PR perspective, what information and content essential to deliver to

stakeholders in a campaign, how to successfully apply stakeholder identification, how

practitioners customize communication approaches to different stakeholders, effective

relationship building and management methods are critical factors of my analysis of

the case. The outcome of the campaign like what competitive performance it did,

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http://www.youtube.com/watch?v=Mx0IJnO3o8g


what perception and reputation it gained from stakeholders’ perspectives and what

kind of relationship it maintained with the stakeholder are important to be analyzed.

Case context

I picked up the case campaign based McDonald’s PR action in the UK; Leo Burnett

launched the A-Z campaign (http://theinspirationroom.com/daily/2011/mcdonalds-a-

to-z/) in 2011, which is a CSR-focused marketing (PR) strategy.

The PR campaign emphasized on MacDonald’s efforts and investments in employees,

community and environmental issues, as well as delivering food-quality messages. 1

minute TV advertisement, print media coverage, in addition to social-media and

online elements devised by PR Agency Razorfish were collaborated to maximize the

effect of the campaign. McDonald’s delivery trucks and 1200 UK restaurants also

carried the designed images and messages (pragency & the inspirationroom). A web

page (http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/qa.html)

accompanying the campaign named ‘what makes McDonald’s’ was set for food

questions. Publics can find and ask any questions, doubts about McDonald’s food

quality while it communicate more in an asymmetrical way that the web inculcate

positive food messages to viewers instead of providing free talk and communication

platform.

Alistair Macrow, McDonald’s Marketing Vice-president in UK stated: “Over the past

three years, our advertising focus has been primarily on the ingredients that go into

our food and where they come from. While our brand advertising will continue to

satisfy this interest, we feel the time is right to start celebrating the good work we do

in other areas of our business. Even our most dedicated followers will learn something

new.”

As food quality and safety is a continuing and challenging issue of the fast-food

industry, which has the most powerful impact on McDonald’s business. Therefore,

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McDonald’s keeps launching varied campaigns to build its healthy, fun and nutrition

food image. The case I pick is stated not only about delivering quality food but also

including corporate social responsibility issues, however, I suppose that it is a new

way for McDonald’s to enhance its food-quality message in line with increasingly

significant CSR public relations communication approach.

Theoretical literature

Stakeholder theory

Freeman (1984) described a stakeholder as, “any individual or group who can affect

or is affected by the actions, decisions, policies, practices, or goals of the

organization”. The stakeholder perspective images a firm lies at the core of

stakeholders networks (Barringer and Harrison, 2000; Rowley, 1997) acting as a

complex system for exchanging goods, services, information, technology, talent,

influence, money, and other resources (Freeman, 1984).

The empirical stakeholder literature itself reinforces the idea that financial rectums are

primary measurement of value created by the firm (Harrison, Wicks, 2013). Value

creation will be accumulated over time with firm’s strenuous seek to serve the

interests of a broad group of stakeholders. Economic measurements are major

concern of the management process but the value perceived by the stakeholders who

involve in creating it is more challenging for managers to examine.

It is impossible to equally treat every stakeholder; instead maintaining valuable

relationships with a few dominant groups is more beneficial to corporations.

Stakeholder identification facilitates relationships prioritization, issues and

opportunities identification, problem solve and interests alignment. It is a

relationship-building tool and act as the core element of strategic public relations. But

even perfect classification of stakeholder is made, Rowley (1997, p. 889) claimed that

the real argument lies, not in the “classifications of the different types of stakeholder

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influences”, but in “how firms are likely to respond to stakeholder influences”

(Rowley, 1997, p. 889) and from there in “predicting organizational responses”

(Rowley, 1997, p. 890).

CSR

There are a few key elements of the concept of corporate social responsibility

according to Buchholz’s (1991) examination of varied definitions of this concept.

Corporations have responsibilities beyond profit-focused goods and services

production, which require ethical behaviors serving a wider range of human values,

protect and improve social welfare.

Because the concept of CSR is relatively vague and ambiguous comparing to other

concepts of PR literature, it was not applied widely while with increasing study of the

concept, now CSR has become a more remarkable concern and activity that many

corporations believe it primarily works for their survival (Esrock & Leichty, 1998;

Sen & Bahattachrya, 2001).

According to Kim (2011)’s study, CSR communications is for changing the insights of

the public and build corporation’s own well being. When consumers associate the

company with strong CSR, automatically they sustain a company is more likely to

make responsible products. Hutton et al. (2001) maintained reputation management

or perception management is becoming the main public relations function favored by

abandoning relationship management one.

Although CSR has pursued growing focus in academic research, the general

significance of CSR on financial performance or social responses is dubious in

previous research. Some research found no associations (Page & Fearn, 2005), but

others proved some positive relationships between CSR and consumer responses

(David, Kline, & Dai, 2005; Pava & Krausz, 1996; Kim, Haley, & Schumann, 2009;

Wigley, 2008).

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Sustainability （Signitzer, & Prexl， 2008）Corporate sustainability is a newborn concept in management of business. In many

companies, for the sake of long-term profit maximization, corporate sustainability is

increasingly becoming a corporate value and being integrated into business strategy.

It benefits corporations to be economically viable, socially responsible, and

environmentally sound

Dow Jones Sustainability Group Index (DJSGI) has demonstrated that in fact,

corporate sustainability can offer up to maximize corporate profits and thus positively

impacting on shareholder value.

Public relations practitioners have adopted CSC as a prospective field of action,

which has rapidly grown as a new tool for valuable communication. Corporate

sustainability goals, CSR, sustainability of products and production processes, and

stakeholder behavior are main topics of CSC that critically relate to social justice,

environmental awareness and economic success. CSC also contributes to image

improvement, license to operate, fulfillment of customer, and shareholder demands.

Companies use CSC mainly to accomplish broader sustainability goals of

organization management.

CSC is defined as a societal approach which some companies engage in considering a

public case focused on two aspects: first, what it can contribute to communicating

sustainable development issue of an organization, and second, how it can help the

society to move closer to sustainable development by informing, increasing awareness

and giving knowledge of certain issue to stakeholder groups specifically.

Stakeholder theory and CSR

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From its early development, stakeholder theory merely emphasizes social

responsibility while effective management of a broad group of stakeholders is that

matters (Freeman, 1984; Walsh, 2005). Some strategic management scholars believe

that overemphasis on society as a stakeholder seems to have led stakeholder theory to

be about managing social interests responsibly rather than managing a firm

effectively. As Sisodia et al. (2007: 17) express it, ‘How is it that these companies

can be so generous to everyone who costs them money (customers, employees,

suppliers, communities) and still deliver superior. . .returns to investors?’ On the

other hand, some studies demonstrate that a positive relationship between CSR and

firm performance is in support of stakeholder theory (Orlitzky, Schmidt, and Rynes,

2003).

Links between issue and literature

Clearly, I choose one main theory-stakeholder theory to address the case campaign. I

would link the issue with this theory in two aspects, first is value generation of

stakeholders as mainly to suppliers and customers. Because the food is directly

associated with these two sides. Suppliers determine where the food comes from and

consumers determine whether the food can be sold out. They are main part of the

value making for the organization therefore making value for them is critical. And

second, in relate to stakeholder identification, it underpinned how PR practitioners

construct the campaign. Primary audience of the action, specific information

targeting the main stakeholder group (child and parents are the most important one in

the case), mode, design, time and theme are all determining factors in delivering

quality-food messages.

CSR and CSC approaches for public relations communication are also primary for

analyzing the case campaign as ‘A-Z campaign’ is CSR-based. Food safety and

quality is an important issue of societal welfare thus referring to CSR approach, how

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PR practitioners communicate corporation’s social responsible food management with

stakeholders as well as publics. Also, to what degree the campaign has changed and

shaped audiences’ views and perceptions of McDonald’s ethical performance about

food quality so far. As to CSC approach, what has McDonald’s done to guarantee

food safety and quality is not only for CSR campaign communication but also for its

goal of sustainable development. McDonald’s relies on its food for long-term profits,

therefore, whether and how this campaign delivers information about sustainable food

message with a CSC approach will be analyzed.

Analysis

Internal Performance of A-Z Campaign

Vladimíra and Katarína (2012, p.145) supposed that effective internal communication

transfers the right information to the right people, playing as a critical role in

engaging employees towards compliance with principles of responsibilities.

Therefore, in this part I would argue whether the A-Z campaign deliver a well

functioned internal communication with employees in satisfying its CSR orientation.

‘L’ in the campaign represents the ‘litter patrollers walk’ of McDonald’s CSR

engagement for environment performance and making the local community tidy.

From its online statement (McDonald’s 2013), staff from every restaurant across the

UK, go out at least three times a day to pick up McDonald's packaging and other

litter. This is one of the programs provided by the corporation to engage employees,

which is in line with Leeora’s (2013) involved communication for CSR. Moreover,

Leeora (2013) assumes that strategic communication is obtaining employee

commitment to the CSR activities first and then making it external. As to the A-Z

campaign, it is an initiative for McDonald’s to communicate “litter patrollers walk’,

which is one of its main CSR activities positively to the external audiences, based on

employee’s long-term involvement of picking litter. According to campaign

supported website (Litter), “we’ve been working hard for more than 30 years to try

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and reduce the amount of litter on our streets’.

In addition, focusing on the good things done by McDonald’s of the A-Z campaign,

McDonald’s do link CSR with its employees. From Philip’s view (2012, p.95), ‘how

employees are treated is the litmus test of CSR for a company’, the A-Z campaign

draw attention to the qualifications that staff can gain while working at McDonald’s,

including GCSEs (2010), A-Levels (2008) and its apprenticeship (2009) in multi-

skilled hospitality (Anna, 2011). Employees are provided skill-learning opportunities

that comply with the perception of ‘company values and treats employees fair and

well’ tested in GolinHarris surveys (2006-2010).

However, more than involving employee for activities, according to Shirish’s (2010,

p.210) study, employee involvement in developing and implementing CSR programs,

activities and initiatives categorized into internal support is a key factor of success

CSR performance. In this case, from employee engagement for CSR, the A-Z

campaign with the advertisement and webpage communication is a highlight of good

things employees have done rather than “helping define organization’s relationship to

society’ (Leeora 2013). Additionally, according to Vladimíra and Katarína (2012,

p.145), A well-functioning (internal) communication is an organization, which ensures

employees understand and cooperate in sharing common goals and form desirable

attitudes and behaviors. Hence, the advertisement and webpage delivering what the

employees are doing good for the community is not enough to ensure a well produced

CSR campaign which needs not only actions but perceptions.

External Performance of A-Z Campaign

In the process of external CSR communication, stakeholders are main audiences of

the campaign including the customers, suppliers and the public. Michael and Mark

(2006, p.6) illustrated that ‘effective CSR requires an understanding of the social

dimensions of the company’s competitive context—the “outside-in” linkages that

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affect its ability to improve productivity and execute strategy’. Related and

supporting industries are one component of the diamond frame constructing the

competitive context, demanding availability of local suppliers and cluster industries

(Michael & Mark 2006, p.6). One of the main elements of the A-Z campaign is

highlighting the McDonald’s Agricultural Assurance Program, characterizing brand’s

collaboration with local suppliers to reduce the environmental impact of its supply

chain (Popsop). And through my research, the McDonald’s Europe Flagship Farms

project based on the MAAP (2010-2013) encourages dialogue between farmers and

plays as a farming community for conjunct improvement and innovation.

In a word, the program and the project are main supply chain value making CSR

activities, taking social conditions into consideration to form long run strategies

within competitive context. Local availability of supporting industries is one of the

aspects being opportunities for CSR initiatives, which is highlighted by McDonald’s

CSR performance, being communicated by the A-Z campaign (Michael & Mark

2006).

Indicated by Leeora (2013), endorsed communication strategy is designed for general

public and customers, which is the key to avoiding appearance of being self-serving.

In the ad of A-Z campaign, alphabets are delivering messages about green products

such as free-range eggs and services with CSR attributes that are required by strategic

endorsed communication (Leeora 2013). In addition, pointing to the website

supporting the campaign, customers can find detailed information on its CSR

initiatives in a story telling way, which is supported by Jan, Laura, Sabrina’s (2013,

p.58) finding: narrative storylines communicating the CSR activities encourages

positive perceptions that enhances the satisfaction and loyalty, leading to an effective

CSR communication. More than the information delivered by the advertisement,

hundreds of good things McDonald’s that are doing or have done are storied on the

website for reading. On the other hand, as Vanja (3E company 2008) pointed out the

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CSR communication aim for customers is providing information about not only

current but also future initiatives that I can rarely find on the webpage. Also,

Vladimíra and Katarína (2012, p. 147) has proposed that all the CSR activities of the

company should be provided to the public in details with transparency, which is

mainly satisfied by the website supporting the A-Z campaign with details but arguable

of transparency.

In contrary, there are still a few aspects of the A-Z campaign to make it a less credible

CSR initiative. Leeora (2013) maintained that the effective communication with the

public and customers needs third party communications through employees and/or

experts. However, looking through the campaign, there are no signs of no-self

communication, all the information are produced by the McDonald’s and delivered to

the public and audiences even excluding voice of their employees who are

participants of the CSR activities. And from Shirish’s (2010, p.219) perspective,

external support, namely, government support, NGO support and society support are

necessary for CSR communication and campaign, which cannot be found in the A-Z

campaign. By its ad and website communication, no comment or dialogue from the

third party are included as main messages for reference.

Focused on its website communication tool, it is designed as an “interactive map of

CSR activity rather than a "geo-navigation" map that only pinpoints CSR projects’

suggested by Silvia, Laura, and Belén’s (2012, p.33) study including twitter,

Facebook functions and comment-respond mechanism. While, only a few stories gain

audiences’ responds even though asking for the feedback, which indicates

McDonald’s failure in maximizing impact of social media channels on stakeholder

involvement by conversations (Silvia, Laura &Belén 2012, p.33). When evaluating

the credibility of the webpage, absence of third party links challenges its stand (Silvia,

Laura &Belén 2012, p.33). On the other hand, customers’ involvement is a key factor

in CSR activities as Jan, Laura, Sabrina (2013, p.58) assumed that message of CSR

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activities interpreted by customers would be enhanced when they feel being involved

in. Overall, a good and successful CSR campaign should further stakeholder dialogue

(Vanja 2008); provide opportunities for feedback from the customers behalf (Mihaela,

Sorina & Raluca 2011) as to the A-Z campaign, it inclined to be a one-way

communication by pushing information to the stakeholder without response, however,

responsiveness is essential (Leeora 2013). Furthermore, except for communicating

CSR activities for environment and society welfare, companies should inform the

public about how assesses environmental and social risks of its business activities

(Vladimíra & Katarína 2012) and hence effectively assessing the responsive CSR

doings.

CSR Goals/Outcomes

From Reynolds’ (2011) perspective, the campaign is CSR-focused for ‘featuring a

series of McDonald’s related ethical initiatives’, and Alex (2011) identified the A-Z

as a CSR PR campaign for its emphasis on MacDonald’s efforts and investments in

employees, community and environmental issues. In comparison, analysis of whether

the A-Z campaign is a ‘true’ CSR initiative should base on ISO 26000 that provides a

more comprehensive definition of organization taking social responsibility. From

goals’ perspective, by Leo Burnett’s (Leo Brunett 2013) definition, the A-Z campaign

is aimed to reassure the high quality of McDonald’s food to parents and highlight

CSR commitment for the first time. Differ from the main goal of CSR as contributing

to health and the welfare of society (ISO 26000), the A-Z campaign seems to tell a

nice CSR story for improving its product image. Certainly, the activities

communicated by the campaign have aspects for society and environment weal,

however, without sufficient measurement or demonstration of being CSR-oriented.

On the other hand, the campaign did not prove itself as sufficiently valuing the

expectations of stakeholders (ISO 26000) because regular dialogue with stakeholder

and customer/employee feedback that are essential for CSR assessment and

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measurement (Michaela & Kateřina, 2012) are not actively encouraged but instead

one-way inculcation domains the campaign. Walter (2012) believed that ‘CSR

communication is not just talking on and about CSR but is CSR in its best sense’, thus

measurement and integration of CSR communication throughout the organization

(ISO 26000) is important in implementation of CSR campaign. Whereas, the A-Z

campaign is sampling McDonald’s CSR activities, mainly talking on CSR and the

website (2012) supporting the campaign providing diverse and CSR activities without

interconnection that is a main problem of success CSR activity. Last but not least,

evaluation of CSR benefits (Shirish, 2010) for the company as well as for the society,

environment and stakeholder is crucial part of CSR initiative, which is not completely

included in the A-Z campaign.

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Conclusion

To sum up, the essence of a ‘true’ CSR is to make contribution to social welfare, be

responsible to the environment, stakeholder and the public and help to build

sustainable business and good reputation for the organization. At the phase of

evaluation of a true and effective CSR campaign, employee is a prior internal CSR

component; involvement and education are significant for CSR communication. By

the analysis of the A-Z campaign, I saw responsible employee voluntary and

participation as part of involvement while no employees’ ideas and opinions in

planning CSR activities and feedback or recommendations being included in the

campaign. As to the external communication of the campaign, varied message of the

McDonald’s CSR initiatives are accessible; supply chain value making is included in

contents; website enables an interactive communication pattern and customers are in

the heart of the campaign. However, lack of third-party commitment, wanting

stakeholder dialogue and inactivate interaction on website make the campaign a less

credible and trustful CSR initiative. Concerning the goal and outcome measurement

of the A-Z campaign, it is not in accordance with the main goal of a CSR activity for

offering up to the society and environment instead focusing more on building green

image for the products and the organization. Also, measurement is an important part

of the CSR campaign, which is missing in the process of A-Z campaign, making it

incomplete and insufficient.

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Therefore, as the McDonald’s performed the CSR-oriented campaign for the first

time, I cannot definitely judge it as a non-CSR initiative for the aspects of CSR it

unsatisfied while I would say it is a trial of CSR campaign/communication by the

organization and it is not a ‘true’ CSR initiative that needs improvement and specific

positioning for its CSR intention.

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http://www.youtube.com/watch?v=Mx0IJnO3o8g


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ayinportfolio.files.wordpress.com viewThis case study will analyze McDonalds’ initial CSR-oriented A-Z campaign through CSR theories and concepts. ... claimed about how badly its