1. McEthics
By
Group – 2, Section - B
Ashuthosh Gupta
Ashwin Murali
Avadhesh Kumar
B U Deepankar
Bangaru Beulah
Bhaghat G
Bhanujeet Choudhary

2. About McDonald’s
• A multinational fast food giant that operates
across 118 countries with 31000 restaurants
serving 60 million customers a day.
• It is the first and largest fast food chain in the
world
• Pioneered an innovative business model
(franchise) in the fast food industry.
• No of outlets: US - 18000+, UK – 1250+, France –
1200+, China – 1500+, India – 250+
• Known worldwide for their burgers (Big Mac) and
French fries

3. Criticism against McDonald’s McLibel Case
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Allegations of unethical practices
Criticized for serving fatty foods
Exploiting children with their advertisements
Cruelty to animals
Antipathetic to unions
Low wages to workers
False advertisement of nutritious food
Risked the health of most regular
and long-term customers

4. Consequences of the McLibel Case
• Massive International publicity
• Publication of an acclaimed book and a TV
programme against McDonald’s
• A documentary film about the trial
• McSpotlight Website

5. Problems in Europe
• Resisted by local farmers’ union in France
• Anti-Americanism due to Iraq war
• Concern about health and nutrition – escalating rates
of obesity
• Failure to provide a balanced menu
• Insufficient information on nutrition and guidance
• Promoting ‘supersize’ portions
• Box office success of anti-McDonald’s film ‘Supersize
Me’ by Morgan Spurlock
• Government regulations

6. Mc fights back
• Dropped supersize options
• Range of new healthy options on the menu
• New advertising campaign – “McDonald’s. But not as
you know it”
• New menus sent to 17 million households in Europe
• Nutritional labelling
• Exercise and sports initiatives for young people – McDo
Sports Tour, McDo Kids Iron Tour
• Sponsored UEFA Euro 2008 Football Championships
• Association with local football clubs across UK
Continued…

7. Mc fights back
• Long-term strategic realignment towards changing
societal values and expectations
• Commitment to serve Rainforest-grown coffee in UK
restaurants
• Used cooking oil reprocessed into biodiesel.
This biodiesel used in their delivery trucks
• McSpotlight website abandoned in 2005
• The fight back was successful – steady growth in profits
• By 2009, Europe was the firm’s highest growth region

8. Looking East
• Potential Markets in India and China – worth
over $120 Billion
• Problem of obesity in China
• Consumers International’s Claim – Global
brands take advantage of lax laws in Asian
countries
• Absence of nutritional information in their
websites in China, Philippines and Hong Kong
• Continuation of unethical practices once
practiced in Europe – online kids’ zones
targeting children with unhealthy food
• Introduction of healthy corn soups in China,
Vegetarian burger in India to appease the
critics
• Yet to replicate the European model

9. Points to ponder – the issue of Ethics
• Reacting to the situation or really ethical?
• Why wasn’t the European model replicated in
Asia?
• Are Asians as health conscious as Europeans?
• Really committed to the promotion of a
healthy lifestyle or just to appease the critics
remains to be seen

10. Thank You