Essay

Unit 37- Distinction 1

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Module
Unit 37

Institution
PEARSON (PEARSON)

This report outlines and evaluates issues identified concerning McDonalds and determines whether McDonalds is a truly ethical company. It will be suggest realistic and specific improvements.

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Uploaded on August 14, 2021
Number of pages 7
Written in 2021/2022
Type Essay
Professor(s) Unknown
Grade A+

How can McDonalds improve its operations ethically?

In this report, I will be outlining and evaluating issues identified concerning McDonalds and whether
I believe McDonalds to be a truly ethical company. Also, I will be suggesting realistic and specific
improvements.

Zero-hour contracts

An unethical concern regarding McDonalds is there zero-hour contracts. Employees are not
promised jobs every week, so they fear not making a wage on zero hour contracts, which have been
deemed immoral. These contracts have sparked a debate as employees want fixed contracts. These
have led to employees struggling to cover their living costs such as rent and food etc as they are not
always given shifts they need. They have also complained that they are unable to obtain a loan or
mortgage because they do not have fixed hours each week.

To address this issue McDonalds could offer fixed hour contracts. McDonald's has agreed to sell both
zero-hour and fixed-hour contracts. This was based on research that found that 80 percent of
workers already wanted a more flexible contract. Employees who opt for a fixed-hour contract, on
the other hand, would be given a weekly average of4,8,16,30, or 35 hours. About 50 restaurants and
over 115,000 UK jobs will be affected.

An advantage of this solution is that employees would be satisfied that they have an option and are
promised a minimum amount of hours per week if fixed hour contracts are implemented. Employees
will be respected by McDonald's as a result and will continue to keep their positions. As a result,
they will be more productive by working harder. This will lead to better products being served to
customers and better service, making them satisfied. This will increase revenue. Another benefit is
that having two distinct forms of contracts to choose from improves the company's reputation and
image. This is as a result of the transition, which shows that they respect their workers and wish to
become more ethical and socially conscious. Therefore, customers would choose McDonald's over
competitors, resulting in increased sales. McDonald's will be able to outperform their rivals as a
result of this.

On the other hand, the implementation of this strategy would be a downside of this solution.
McDonalds employs more than 200,000 people around the world. Due to the vast number of staff,
implementing such a significant shift can be time intensive and challenging. As a result, it will take
some time for the solution to reach all workers worldwide. McDonald's would be at a disadvantage
that they would have to devote money and effort to ensuring that each staff gets a contract that
they are happy with. McDonald's would be at a disadvantage that they would have to devote money
and effort to ensuring that each staff gets a contract that they are happy with. This could lead to a
disagreement if managers are dissatisfied with the increased workload and the potential for
uncertainty as a result of the move. As a consequence, it can create discord in the workplace, which
can have an effect on customer care.

The consequences in the short term would be that McDonald's would be forced to quiet down
enraged workers, allowing them to stay on board. This is because workers are given the option of
choosing their contract and the number of hours they choose to work each week. Consequently,
workers will have job security, which will encourage them to continue working at McDonald's so that
they can continue to get this gain. McDonald's can experience a rise in job applicants in the long run.
This may be attributed to the popularity of offering workers the option of choosing their contract
form. The job would be attractive to employees who want either type of contract. As a result,

, McDonald's will have a larger pool of applicants from which to pick, allowing them to choose the
most qualified and valuable candidates.

This solution is realistic. Fixed-hour contracts are the only appropriate option for satisfying workers'
need for secured jobs every week. They also appeal to staff who wish to work on a flexible schedule.
As a result, they will ensure that all of their workers are happy and have the independence and
protection they want. In terms of if it is feasible, going through each employee's contract and
adjusting will take some time. McDonald's, on the other hand, has the money to make this move,
and therefore will potentially make this kind of contract available to all workers.

Employees will be impacted by the solution because they would have the option of a zero-hour
contract or a fixed-hours contract. Employees would have job protection as a result of this because
jobs would be guaranteed every week. As a result, they will be more financially stable, allowing them
to stay at McDonald's rather than looking for another career. Managers will be impacted, and they
may be asked to make improvements to their workers' job contracts. Managers would have to
ensure that they could efficiently schedule shifts for their workers in compliance with their contracts,
which could be time consuming. Competitors will be impacted as well, since their workers would
demand them to deliver the same deal. Therefore, they would have to reconsider their policy, and
they would be forced to sell fixed-hour contracts. They will, however, become more ethically
conscious as a result of this. Shareholders could be impacted because the favourable publicity could
boost McDonald's sales. This will result in more gains and, as a result, a better return on investment
for shareholders. The government will be affected, and more workers would be employed.
Employees would have more surplus money as a result of this financial protection. This could give
the economy a boost.

I believe Employees will be the most affected stakeholder. Employees on zero-hour jobs will benefit
directly from the arrangements because they will be able to agree to a new deal that promises them
employment every week. Furthermore, it has the most effect on them because it strengthens their
employee rights and ensures their work stability.

Marketing to children

Another unethical issue is the targeting of McDonalds marketing towards children. They use toys and
tv advertisements on kids channels to promote their unhealthy food full of fat, salt, sugar and
calories. The toy was mostly promoted in a McDonald's happy meal commercial, which urges kids to
persuade their parents to buy them an unhealthy meal in exchange for the toy. The happy meals
includes fatty foods that have the risk of obesity and health related illnesses. As a result, McDonald's
is engaging in dishonest conduct. McDonald's has responded by developing healthier options for
happy meals, such as grilled burgers, fruits and milk etc. Additionally, the toys were removed so that
children would not be enticed to purchase the dinner. Therefore, this leads to the decrease in youth
obesity and health risks.

One benefit of the approach McDonald's has introduced is that consumers will be very pleased with
the move. This is due to the fact that parents will be willing to afford something nutritious for their
kids, thus avoiding childhood obesity and illnesses. As a result of the pleased customers, revenue
and profit will increase. The profit will then be reinvested in the company, either to add new
healthier menu choices or to expand. Another benefit of the solution is that it would boost the
company's reputation. Customers will see McDonald's as a fast, low-cost restaurant with healthier
food choices. This will lead to more customers wanting to buy from McDonalds. McDonald's revenue
and profit will increase, which could be reinvested into expansion and improving customer

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