Qualification Pearson BTEC Level 3 National Diploma in Business
Pearson BTEC Level 3 National Extended Diploma in Business
Unit number and title
Unit 20: Investigating Corporate Social Responsibility
Learning aim(s) (For NQF only) B: Investigate the benefits and drawbacks for businesses of a...
In this report I will be discussing the benefits and drawbacks of CSR policies with external bodies of
McDonalds. McDonalds main CSR policy is to reduce waste, increase recycling and to help the
environment and animals. McDonalds do this in a number of different ways and use a number of
different stakeholders to do so.
20/B. P3: Investigate the potential benefits of the CSR policy of a selected business.
Benefits of the CSR Policy
The CSR policies seek to ensure that businesses operate in a responsible way, taking into
consideration human rights and the financial, economic and environmental effects of what they do
as a company. McDonalds have CSR policies set so they can then increase brand awareness,
customer sales and also revenue. Any business, company or organization who are socially
responsible for their actions will do well in whatever industry they are perusing because it is
important for the outside world to see that a company takes ownership for their actions and most
important to see how they can strive to do better the next time. McDonalds have had a lot of
downfalls with different stakeholders in their years as a successful business but there is no doubt
about whether or not they are doing whatever they can to save the environment, keep their
stakeholders happy and also to drive their capital through the roof.
Improved public opinion - McDonald's corporate social responsibility efforts only partially satisfy the
interests of employees as a stakeholder group. McDonald's views its customers as its second-priority
stakeholder group. The interests of these stakeholders include affordable and healthful food
Improve Customer Loyalty and Brand Image - CSR has almost the same impact as ads, as it shines a
favourable light on a company or commodity. And CSR can also be used as a marketing term. Public
value and market reputation were increased by using the company identity in environmentally of
drawing customers into McDonalds along with their attractive billboards and posters of their
delicious Big Mac which McDonalds is famous for. McDonalds are all for looking out for the
environment and many of their actions have justified this, they have recently switched to paper
, straws and have also reduce the number of straws they give out. It has been proven that this is
helping the environment but mainly the sea as animals were choking on the plastic.
Ability to charge premium prices – Customers who are willing to pay higher prices for non-durable
products are the ones McDonald’s should focus on because those customers show an act of social
commitment to both animals and humans such as fair labour practices. On the other hand,
McDonalds receive customers who don’t really care about the environment and used to take a lot of
plastic straws for other uses besides having to drink from. If McDonalds were seen as being
completely socially responsible it would benefit them as a company but will also increase customers
and some of these customers may be ‘socially conscience’ customers who may do what it takes to
Enhanced Recruitment, motivation and staff retention - In all companies there is a hierarchy from
the CEO to the cleaners however, all voices should be heard because at the end of the day everyone
who is employed to that company has a say about what the company can do to be for e.g. More
socially responsible or what they can do to attract more customers or drive up their revenue. At
McDonalds all staff are trained to only give out one paper straw with each drink or meal. McDonalds
used to just have straws out by the tissues for customers to take but realised this was a mistake
when employees would find wasted plastic straws inside and outside of McDonalds. This was a good
move for McDonalds and their staff felt a lot more comfortable with this because customers would
have to ask a member of staff for an extra straw. McDonalds have recently put some new questions
on both their application and their interview questions list about whether potential candidates who
are willing to work for McDonalds care about the environment as it is, what issues such as littering,
carbon emissions and animal welfare means to them. McDonalds have done this in a way to
introduce a young skillset of open mind employees who will think about issues which have caused
Reduced pressure from government and other stakeholder groups – McDonalds have to think
about all their different types of stakeholders and how every action will benefit some positively and
some negatively, for example as soon as McDonalds introduced paper straws the government were
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