ETHICS AND SOCIAL RESPONSIBILITY

Ethics and Social Responsibility



Ethics and Social Responsibility

Introduction

International management is a reality in today's business environment. When a firm decides to expand business across the border, it faces many challenges including management of diversity, language barriers, diverse regulations, diverse norms and traditions, and so on. Culture and business are very much inter-linked, until and unless a firm understands the culture of a new society where it plans to expand, it is impossible to achieve targets and objectives. Language barriers are one of the major issues faced by multinational firms. Cultures vary nation to the nation and continent to continent. The concept of fair business practices get even more ambiguous when one moves in to newer culture. This paper discusses the cross cultural ethical responsibility issues that McDonalds' face and the response of the company to these issues.

Ethical and Social Responsibility Issues: The Case of McDonalds'

In 1999, Jose Bove initiated an anti globalization movement, was thrown behind bars for sabotaging McDonald's restaurant, he claimed that French people support his move. Around 40,000 thousand French citizens showed their support. However, French people were not the only to support it, but McDonald's faced hostility in around 50 countries. This global issue of McDonald's illustrates a friendly Ronald McDonald of U.S. imperialism. McDonald's practices of marketing were against local cultures according to commentators of business management (David, 2004). The unhealthy food, value chain system and fast food concept all lead to these protests. Until now, McDonald's bends backwards to merge into home cultures. The marketing philosophy of McDonald shows itself as a local company for local consumers. In reality, the franchise system of McDonald makes it natural that a local franchise in France is operated by French manager and local franchise in India is managed by Indian manager. Local menus are chosen by the regional manager as they know better about local tastes. Local mangers are best placed to find better suppliers and launch appropriate marketing campaigns according to the norms of local community. A goofy Ronald McDonald replaced a French strip character (in comic) who symbolizes individuality and resistance to royal forces in McDonalds marketing campaign, in 2000s. McDonald in France took an additional proportion to win support of locals by condemning the eating habits in US. In one advertisement, a huge American cowboy protests that McDonald's France does not introduce American beef to “assure maximum clean conditions”. McDonald in France is designed in much leisurely manner the MacDonald's in US. Customers are also allowed cocktail from the menu (Simon, 2004).

Ethical Perspective

Multinational corporations are defined in various ways. A common definition is than MNC with a dominant HQ in one country and various subsidiaries across different countries. International management goes along with international strategy of a firm. Definition of MNCs suggests that some companies will be more multicultural than other depending on the expansion of business in various countries (David, 2004). Extent of diversity is based on multi-currency revenues, number of subsidiaries, and number of foreign assets and so ...