D) KING CODES EXPLAINED AND APPLIED TO THE BRAND.
King code I Report recommends standards of conduct towards reaching triple bottom line. It was introduced as a requirement for management. According to the King Code I, McDonald’s management should not solely seek to create profit for shareholders but consider other stakeholders. People (customers, local communities and employees) and the surrounding environment should be respected and contributed towards. McDonald’s do have CSR initiatives which support the development of lower incomed communities like the Under14 School's League and the Ronald McDonald House of Charities organisation. Sustainability initiatives include the building of steel frame structures, the use of LED lighting and the …show more content…
If a manager is held accountable for a decision, he/she will act more professionally. This will increase the level of trust that stakeholders will have in the business because business operations will be conducted and managed more ethically and professionally. Example, a manager is held accountable for the quality of food or service a customer receives, therefore, he/she will constantly inspect quality.
Independence – means that no conflict of interests will result in McDonald’s taking unethical decisions in favour of anyone or any organisation. Networking is critical for a business to succeed, though it may reduce the business’ independence. For example, McDonald’s agreeing to obtain coke at a cheaper rate, provided they don’t sell any Pepsi products.
Discipline – tis refers to the self-discipline of management and relates to their integrity. If McDonald’s management were to act incompetently or promote their personal interests above stakeholders, the market will punish this behaviour and result in bad publicity for …show more content…
Even though McDonald’s may be perceived to sell unhealthy products, they still promote a healthy lifestyle. Such CSR initiatives include Under14 School's League and The National Basketball Association (NBA) collaboration with McDonald’s South Africa, which builds basketball courts and facilities in underprivileged countries. This promotes important values that sport teaches to communities which don’t have adequate sport facilities.
Fairness – this involves dealings with all stakeholders. Though sometimes it may not be realistic to act in a manner that will satisfy all conflicts of interests. McDonald’s management should always aim to serve the best interests of the business and employees and not for any personal benefit. For example, if an employee achieves his/her set goals for the month, the manager must reward the employee appropriately. Appropriate action will benefit the employee just as their efforts have benefitted the franchise. (1)
Responsibility – is further elaborated in the King Code III Report with reference to directors.
Today, directors are not solely responsible for strategic planning, but are also accountable for incompetence or wrongdoing.
Directors must form policies and implement procedures that are in the best interest of the business and relevant
King code I Report recommends standards of conduct towards reaching triple bottom line. It was introduced as a requirement for management. According to the King Code I, McDonald’s management should not solely seek to create profit for shareholders but consider other stakeholders. People (customers, local communities and employees) and the surrounding environment should be respected and contributed towards. McDonald’s do have CSR initiatives which support the development of lower incomed communities like the Under14 School's League and the Ronald McDonald House of Charities organisation. Sustainability initiatives include the building of steel frame structures, the use of LED lighting and the …show more content…
If a manager is held accountable for a decision, he/she will act more professionally. This will increase the level of trust that stakeholders will have in the business because business operations will be conducted and managed more ethically and professionally. Example, a manager is held accountable for the quality of food or service a customer receives, therefore, he/she will constantly inspect quality.
Independence – means that no conflict of interests will result in McDonald’s taking unethical decisions in favour of anyone or any organisation. Networking is critical for a business to succeed, though it may reduce the business’ independence. For example, McDonald’s agreeing to obtain coke at a cheaper rate, provided they don’t sell any Pepsi products.
Discipline – tis refers to the self-discipline of management and relates to their integrity. If McDonald’s management were to act incompetently or promote their personal interests above stakeholders, the market will punish this behaviour and result in bad publicity for …show more content…
Even though McDonald’s may be perceived to sell unhealthy products, they still promote a healthy lifestyle. Such CSR initiatives include Under14 School's League and The National Basketball Association (NBA) collaboration with McDonald’s South Africa, which builds basketball courts and facilities in underprivileged countries. This promotes important values that sport teaches to communities which don’t have adequate sport facilities.
Fairness – this involves dealings with all stakeholders. Though sometimes it may not be realistic to act in a manner that will satisfy all conflicts of interests. McDonald’s management should always aim to serve the best interests of the business and employees and not for any personal benefit. For example, if an employee achieves his/her set goals for the month, the manager must reward the employee appropriately. Appropriate action will benefit the employee just as their efforts have benefitted the franchise. (1)
Responsibility – is further elaborated in the King Code III Report with reference to directors.
Today, directors are not solely responsible for strategic planning, but are also accountable for incompetence or wrongdoing.
Directors must form policies and implement procedures that are in the best interest of the business and relevant