BTEC Business Level 3: Assignment 2 - Unit 20: Investigating Corporate Social Responsibility. (Distinction*)
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Qualification: Pearson BTEC Level 3 National Extended Diploma in Business
Unit number and title: Unit 20: Investigating Corporate Social Responsibility
Learning Aim:
B: Investigate the benefits and drawbacks for businesses of adopting a CSR policy
Assignment Title: Should a large business have a CSR policy
Introduction
Within this report, the benefits and also the drawbacks of the CSR policies will be discussed
while looking at the external bodies of McDonalds. When reviewing the main policies of
McDonalds, their priority policies include helping animals, protecting environment, increase
recycling and reduce the number of wastages. In order to meet these policies, McDonalds
do it in various ways also use few various stakeholders to do so.
P3: Investigate the potential benefits of the CSR policy of a selected business.
CSR policies are there in order to make sure that every business is operating in a ethical and
responsible way. Each business must be taking account for effect of environment, human
rights, financial and economic ways. In order for McDonalds to be increasing in their sales
revenue, customers and their brand awareness, they have set up CSR policies to do so. Big
companies who have a huge social image must take into ownership their actions and how
they can constantly improve to be better. Looking at the history of McDonalds, they have
had ups and down with their stakeholders even as a successful business. However, they
maintain to keep their stakeholders happy by keeping their promise on policies such as
saving environment which leads to high capital and happy stakeholders.
Customers are also stakeholders but are known as external stakeholders. They buy products
from McDonalds as they are interested in that franchise which makes them a stakeholder
within their franchise. Customers may be interested within McDonalds for various reasons,
it can be such as a promotion meal has been introduced and McDonalds are always waiting
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, for feedbacks from the customers in order to improve. This allows for to decide if they
should set the meal in their main menu or not depending on the reviews and feedback.
Improves the Opinion of the Public
McDonalds CSR policies are there to partially be satisfying the employee’s interest as them
being a stakeholder group. The customers of McDonald’s are there as a second priority
conscious initiative. McDonalds is able to increase its overall opportunities on the market
when getting the growth of attention of CSR by the investors and also their consumers. This
will lead to also the intangible assets being affected as it can be from the overall brand
image or just the brand itself. McDonalds and other big organisations are maintained to
promote CSR in order to getting lots of benefits of their good deeds. These benefits can
come from satisfaction of the employees to increase in brand awareness.
Improving Overall Brand Image and Customer Loyalty
Corporate Social Responsibility itself can also be used a marketing way in order to get a
positive impact on the company. Having strong CSR policies and meeting them efficiently
leads to increase in public value and also the market reputation. It leads to the customers
being attracted towards McDonalds. On the other hand, McDonalds are also looking out for
the environment and there are many evidences which can prove this. One of the great
examples of this is McDonalds switching towards paper straws and not plastic straws as they
want to help the environment due to the animals chocking on plastic. and identifying that it
is important for the public and especially their target audience to be having a great outlook
on the company. Of course, McDonalds aim for their social responsibility is their first and
foremost as they want to provide great value for the customer’s money by offering a good
service and high quality. Therefore, following this up by a great customer service and
involving themselves in civil and advocacies causes. Doing this all effectively will lead to
great ethical practices and shows the company does care about its services towards the
customer in and out of store. Customers recently are more aware of the issues that are
taking place globally and nationally which means their buying decisions will also be
influenced by these issues.
Premium Charging
McDonald’s should be more inclined to be focusing on customers that are wanting to pay
higher prices for no durable products as these consumers are showing more social
commitment to fair labor practices and also animals. Therefore, it leads to McDonald’s
achieving their goals which is to be focusing on the non-environmental related socially
responsible products. However, when it comes to profitability, there is less profit when the
business focuses smore on environmentally friendly products than social benefits to people
who are in need. According to research, when the business is suing ethical labor practice
and also indulge their practice within fair trade schemes, it just displays a much better
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