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现如今，道德管理对全球市场上的公司取得持续发展和长期成功来说是及其重要的。大多数的麦当劳餐厅都提供柜台收银得来速收银服务。这种服务可以让消费者选择在餐厅吃汉堡或者不下车就带走食物。除了这种先进操作，麦当劳公司也注重道德问题。 本文将通过关注最近问题分析澳大利亚麦当劳的道德管理。首先，本文将对澳大利亚麦当劳的背景做一个简短介绍。然后，提出麦当劳最近发生的问题。同时，通过文献综述的模式分析麦当劳的道德管理。最后，本文讨论了公司道德管理的重要性。 1.0 Introduction介绍 In modern times, ethic management and governance are extremely important to achieve sustainable development and long-lasting success of a corporation in the globalized market. Most of McDonald’s restaurants provide the services of counter and drive-through. Due to the services, customers could choose to have burgers in restaurant or to take the food away without going off their cars. Besides the advanced operation, McDonald’s also pays attention to ethics. The present paper is intended to analyze the ethics and governance of McDonald’s in Australia through focusing on a recent issue. Firstly, it will give a brief introduction to McDonald’s background in Australia. Then it will present the issue on McDonald’s recently happened in Australia. Furthermore, it will have an analysis of ethics and governance for Australian McDonald’s through the mode of literature review under the issue condition. Finally, the importance of ethics and governance in the corporation will be discussed. 2.0 Background of McDonald’s in Australia麦当劳在澳大利亚的背景 McDonald’s is the largest fast food restaurant in the world. It was founded by Ray Kroc in America in 1954. It owns over 32,000 fast food chains in 121 countries. Besides, it has a corporation with other catering brands like Aroma Café, Boston Market, Chipotle, Donatos Pizza and Pret a Manager. By the end of 2001, the turnover of McDonald’s reached around 14.8 billion dollars and its net profit was around 1.64 billion dollars (Stephen, 2004). The following bar chart shows the number of McDonald’s restaurants distributed in the top ten countries. In December of 1971, the first chain of McDonald’s was established at Yagoona, Sydney, Australia. In early time, the expansion of McDonald’s Australia was slow due to the inefficient chosen products aiming at opening up the Australian market such as fish and chips. After the mistake was aware of, McDonald’s changed the menu to beef burgers and fries. After the improvement, McDonald’s Australia expanded into other markets quickly, and then within 6 years, there were stores in Queensland, Victoria, South Australia and the ACT. In 1978, the first Australian Drive-Thru of McDonald’s opened in Warrawons, New South Wales. In order to improve the service of drivers, McDonald’s Australia added some US items to the menu like McNuggets and Happy Meals. In 1986, the 9,000th McDonalds restaurant was founded in Sydney. In 1987, McDonald’s Australia decided to add breakfast to the menu, which increased the operating profits of the company. In 1993, in Melbourne, The world’s first McCafe started its business, and after ten years, the number of Mccafe reached one hundred in Australia (Australian Franchise News, 2011). McDonald’s Australia kept on its success. In 2004, it focused on customers’ health with the introduction of Deli Choices. During the year between 2005 and 2006, McDonald’s Australia still paid attention to the diversity on the menu and nutritional value of its products (Meezion, 2007). McDonald’s owned 455 fast food branches and outlets with over 45 thousand staffs in Australia (Steele, 2009). According to the most recent data, about 701 McDonald’s restaurants are distributed around Australia. The employees in McDonald’s could choose a relax work mode like working as a temporary worker, an hourly worker or a regular worker. 3.0 Organizational Structure of McDonald’s in Australia组织结构 The following structural table shows the main part of the organizational structure of McDonald’s in Australia. 4.0 Directors’ Structure of McDonald’s in Australia董事会结构 In regard to the board of director’s structure of McDonald’s Australia, it is composed of directors, who are mainly in charge of internal management and external decision-making. The following chart shows the structure of the directors of McDonald’s Australia. The boards of directors are chosen by board of shareholders. One chairman and one vice president of board are elected in the board of directors. The chairman owns the three-year term of office. Once it is the expiration of the term of office, the director should be involved in another selection with other competitors. The remuneration of board of directors mainly depends on the operation profit of the company. Therefore, the board of directors attaches great importance to the smooth operation of the company. The AGM legal responsibility of board of directors mainly covers the following aspects: making a record of the proceedings, and keeping the company’s articles of association, reporting the actual operation to the shareholders, and applying relevant authority if the company gets trapped into the bankruptcy. 5.0 Ethical Principles Guiding McDonald’s Australia道德指导原则 The ethical principles are extremely important for one organization to make decisions and perform actions, and they can be used for assessing the current standards of the organization. The ethical principles are composed of fairness, law abiding, trustworthiness, responsibility, concerns for others, respect, transparency, environmental protection, honesty, supreme stakeholder involvement, etc. The principles should be applied within the organization by formulating policy, enforcing the policy, formulating punitive measures for ethical policy violations, etc. 5.1 Issue Case Study of McDonald’s Australia 问题案例分析 On March 29th, 2013, the shine of the fast food giant was influenced by an issue. The issue occurred in Tecoma which is a small Australian town in the lush foothills of the Dandenong Ranges east of Melbourne. The residents in Tecoma opposed to the establishment of the McDonald’s fast food restaurant in this area, because they thought it would bring bad impacts on its surroundings and leave negative influences on citizens’ health. However, in order to get an agreement from local community, McDonald’s had already take measures two year ago such as improving its image in residents’ mind and publicizing its CSR. However, it did not seem to work. On March 29th, the residents still fought against the McDonald’s. The citizens said that they resented the influx of an international restaurant chain and felt that the restaurant would spoil the outstanding natural beauty of the area (Sarah, 2013). There are more reasons explain why the local residents opposed the establishment of the restaurant. The location of the restaurant was chosen improperly because it would be built just opposite a school with a large number of pupils. Fast food has resulted in the overweight of many people in Australia, and people believed that the food from McDonald’s fast food restaurant can greatly influence the health of the teenagers. At the same time, the safety of the pupils can not be guaranteed due to the huge number of customers from local places, and crowed environment can result in accidents or crimes. The issue draws the attention of McDonald’s managers, and the managers must devote to performing self-examination on its ethics and governance because they are the main sources that cause the Tecoma residents to resent their corporation. The issue against the establishment of McDonald’s new restaurant in the area draws the attention of McDonald’s managers and employers. The reason is that it reflects the ethics and governance of McDonald’s Australia are not understood well by locals. The following part will present detailed information on ethics and governance of McDonald’s Australia through the way of literature review. 5.2 Ethical Principles and CSR of McDonald’s Australia道德原则和社会责任 The final goal to make a research on business ethics is to build an ideal community in which justice and humanity live harmony with economy. Under the situation, the economy could have a constant development and the public could meet their inner mind’s requirement (Cross, 2009). Ethic is the code of conduct and the business ethic is one of the most important factors in enterprise operation. In all, Ethics means to do the right thing with reasonable reasons. The ethical principles refer to the people who deal with the ethical issues. The fighting issue against McDonald’s reflects that the local people in Tecoma distrust the ethical principles. Therefore, investigating the ethical principals of McDonald’s Australia plays a key part in explaining the deep reasons of the issue. The ethical principals of McDonald’s Australia include the principles for the share holders, board of directors, the managers and the staffs (Tiffany, 2012). In other words, the ethical principals cover all of the company’s employees and shareholders. The shareholders influence the ethical decision of board of directors, while the board of directors helps the management to form the right ethical value. Then, the management directly leads to ethical actions of staffs.#p#分页标题#e# The board of directors has the responsibility of controlling managerial behavior to attain high levels of corporate profit and best interests of the shareholders (Donaldson and Davis, 1991 and 1994). McDonald’s Australia expands its operation scale around Australia to increase the profit of the corporation, and at the same time, the board of directors should take the interests of the stakeholders such as the local citizens into consideration. The stakeholders of the corporation can be greatly influenced by what will be done by the corporation (Freeman, 1984). In the issue, the local people as the stakeholders will bear both positive influence and negative influence from the establishment of McDonald’s. 5.3 Governing Policies and Procedures of McDonald’s Australia 管理政策及程序 The ethical actions include the corporate social responsibility of McDonald’s Australia. In other words, the CSR is one of the manifestations of the ethics. Corporate social responsibility refers to the duty that enterprises should perform to improve the quality of the public’s living environment (Gasparro and Jargon, 2012). In order to solve the problem of opposition of the local citizens, the management of McDonald’s publicized the CSR in Tecoma such as donating cash to protect the local environment, offering the jobs to local people, providing financial benefits to local business, building sporting clubs, and hiring the traffic engineers to solve the traffic jam problems. However, it did not help residents to change the mind, and finally, the corporation backed out its plan. The failure in Tecoma did not frustrate McDonald’s Australia, and in contrast, McDonald’s Australia reviews the issue and draws lessons. McDonald's Australia golden rule is "customer first, customer first forever". All of the employees should abide by QSC&V principals. QSC&V policy means the insurance on quality, service, cleanliness and value. It is the most outstanding character of McDonald’s Australia (Caro, 2008). Quality means that McDonald’s Australia set extremely strict standards to ensure the products quality. For example, McDonald’s Australia regulated that beef products should be approved by 40 times of quality inspection. Expired food is forbidden to sell and should be treated according to the rules of food industry. The limit time to make burgers is around 20 minutes to 30minutes and fries are round 7 minutes. The meat pie should be made of 83% blade meat and 17% marbled meat. The strict regulation relieves the worry of the customers about havinge the McDonald’s food. Cleanliness refers to McDonald’s should strictly follow the cleanliness standard. All the employers and employees should have the value of offering high-quality service for customers. The QSC&V principle not only reflects operation principles, but also becomes the code of conducts of employees. There are important contents of McDonald’s policies and procedures. With the purpose to make chains be more satisfied by customers, McDonald’s establishes the strict supervision system besides the above principals. It includes the following three censorships: regular monthly assessment, headquarters’ inspection and selective examination. The censorship ensures the quality and service of McDonald’s Australia. Therefore, the worry of Tecoma residents could be relieved to some extent due to the insurance of the multinational policies and procedures. 6.0 Implementation of Rules Relating to Ethical Behavior 相关道德行为规则的实施 Similar to any other large-scale multinational company, McDonald’s Australia faces a considerable amount of notoriety in its long history. The most noticeable unethical action is to use the inferior quality components as the business substitute’s products with the purpose to save cost. Firstly, the beef patties are not 100% Australian beef. McDonald’s Australia has declaimed that they used 100% Australian beef with the best quality. However, there was a rumor that they didn’t do so. McDonald’s doesn’t have as good reputation for beef quality as it declaims. It has already exposed that McDonald’s Australia used the beef with the ammoniac-drenched and even could find gut particle-filled pink slime (Sterrett, 2010). There was also the rumor that the beef in McDonald was made of 20% of other kinds of meat and 80% of bean. After the issue being exposed, McDonald’s quickly declaimed it was not true and invited reporter and customers to visit their kitchens. Besides, McDonald’s Australia explained the above rumor in its Top FAQS section with the title “Make Up You Own Mind”. On the website, McDonald’s of Australia claimed that the beef they used came from Australian farms and they had never used poor quality beef. Besides the issue of beef quality, McDonald Australia also experienced the following scandals: meat products were full of additives and preservatives; sundaes and thick-shakes were not real milk and exactly made with pig fat; apple pies were not made of apples but made of chokos; the eggs used were expired; vegetables used were expired and McDonald’s Australia extended its shelf life through making it frozen (Sweney, 2006). In addition, McDonald’s Australia also faced criticism on the account of its labor practices. Many claimed that McDonald’s Australia tried to break federal laws to keep unions out. However, it’s unsuccessful because employees were not interested in (Carrigan Patrick, 2009). Multinational companies should follow the local regulations, which is the basis stone for the international companies. Therefore, the notoriety of McDonald’s Australia influence its normal operation and it spent a lot of time to build up a good image in public after the issue occurred. Furthermore, the Australian public claims that McDonald’s and other Quality System Requirement businesses should be responsible for the obesity problem of Australians. The release of Super Size Me pushes the value to the peak. At the time, McDonald’s Australia purchased advertisement period to introduce healthier options before the movie commenced. The movie gave a strong shock on McDonald’s sales turnover. More and more people began to worry about their health and weight and determine not to go to McDonald’s restaurant that frequently. The above rumors exactly influence the brand image of McDonald’s Australia. Whatever the issue is true or false, the customer will decrease their loyalty and the public will linger fear on the safety of McDonald’s food and operation. The implementation of rules relating to ethical behavior results in the issue of Tecoma residents resent the multinational corporation. 7.0 The Contemporary Approaches to Governance in McDonald’s Australia现代管理方式 Besides ethics, policies and procedures, contemporary approaches to governance should also be researched. In the first place, McDonald’s Australia owns the complete training system. The training system includes on-the-job training and off-job training. Off-job training is mainly performed in Hamburger University to train branch managers and outstanding staffs. And the on-the-job training means the training directly performed in the chain restaurant to teach employees the code of conduct. Besides, McDonald’s Australia adopts the marketing strategy of collective advertising. The collective advertising helps McDonald raise capital more easily through joining up all of the McDonald’s fast food chains. In addition, McDonald’s Australia adopts the strategy of real estate operation. The main income of McDonald’s comes from revenue of its real estate operation, service charge from franchised outlet and profits from direct-sale stores. McDonald buy the real estate ownership by using the money from franchised outlet and then make money from them through renting the stores to them. Furthermore, McDonald’s Australia has a good relationship with headquarters. The early license fee and annuity are relatively low, which decrease the heavy load its branches. The headquarters always support the branches such as helping branches to find the cheap but high quality raw materials. The sincerity of McDonald’s gains the royalty of franchisee and suppliers. Finally, McDonald’s Australia pays attention to external aesthetic image of the store and internal surroundings. The external decoration of McDonald’s will follow up the local decoration style without breaking the local aesthetic rules. Due to the sprit of QSC&V, McDonald’s Australia has a comfortable indoor environment. 8.0 Influence of Ethic Management and Governance on Sustainability道德管理在持续性方面的影响 The governance of McDonald’s Australia also influences the company’s sustainability through the aspects of staff training, marketing strategy, operation strategy and management strategy. To a multinational corporation, effective ethic management and governance are extremely important to the sustainable development and success of McDonald’s Australia. 9.0 Conclusion总结 In conclusion, ethics are the standards for the corporation to formulate management strategies and market strategies to be adaptable to the globalized market. Governance allows the strategies to be efficiently implemented within the corporation to benefit the shareholder and the stakeholders. The ethics and governance of McDonald’s Australia play significant part in operation of the multinational company. The opposing issue against McDonald’s reflects that ethical principals of the corporation are not fully implemented within the local people in Tecoma and lead to the distrust on the corporation. Therefore, ethic management and governance should be implemented effectively. Al in all, in order to keep sustainability of development of the corporation in the globalized market, McDonald’s Australia should keep on the principle of implementing effective ethics and governance within the corporation. Only by the method can McDonald’s Australia keep its competitive status in the globalized market and avoid the issue to happen again.#p#分页标题#e# References参考文献 Australian Franchise News (2001) "History of McDonalds franchise Australia" Australian Franchise News http://www.whichfranchise.net.au/index.cfm?event=getNewsArticle&articleId=2011 Caro, M. (2008) "Devo looks to whip McDonald's good" USA: Chicago Tribune Carrigan, M. and Patrick, D. (2009) "Will ethical consumers sustain their values in the global credit crunch? " International Marketing Review, 26(6), pp. 674–687 Cross, R.(2009) "Inside Hamburger Central". Chicago Tribune. P32-44 Davis, JH et al. (1997) "Towards a stewardship theory of management" Academy of Management Journal, v. 22, n. 1, pp. 20-47. Donaldson, T, and Preston, L (1995) "The stakeholder theory of the corporation" Academy of Management Review Freeman (1984) "Strategic Management: A stakeholder approach” Boston: Pitman. Gasparro, A& Jargon, J. (2012) "McDonald's to Go Vegetarian in India". New York: The Wall Street Journal p. 87. Martin Webster (2010) "The Director's Handbook: Your Duties Responsibilities and Liabilities" Great Britain: Institute of Directors Meezion, L. (2007) "McDonald’sAustralia" http://everything2.com/title/McDonald%2527s+Australia Steele J. (2009) "Oak Brook history in caring hands society president is part of village's changing heritage". Chicago Tribune Page 88. Stephen E. (2004). "McDonald's: The journey to health" Britain: BBC News Sterrett D. (2010) "McDonald’s Being Ambushed by PETA" USA: Crain's Chicago Business Sweney M. (2006). "Not bad for a McJob?" London: The Guardian. Tiffany, H. (2012). "McDonald's monthly sales fall for first time in nine years". USA: Los Angeles Times |
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