Mariano Marcos State University

College of Business, Economics and Accountancy

Batac, Ilocos Norte

McDonalds
Corporation

Submitted by:
CARIAGA THOMAS EMERSON
MARIANO, REIMAR
RASALAN, MARK CHRISTIAN
RAÑA, HONEY QUEEN ALODIA
BS Accountancy II

Submitted to:
Dr. NINFA S. ASIA
Dean CBEA, Instructor

May 2011
Mcdonalds
McDonald's Corporation is the world's largest
chain of fast food restaurants, serving more
than 58 million customers daily.

A McDonald's restaurant is operated

by either a franchisee, an affiliate, or the
corporation itself. The corporation's revenues
come from the rent, royalties and fees paid by
the franchisees, as well as sales in company-
operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007
to $22.8 billion, and 9% growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french

fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in
Western nations and in the face of criticism over the healthiness of its products, the
company has modified its menu to include alternatives considered healthier such as
salads, wraps and fruit.

Facts and figure

McDonald's restaurants are found in 119 countries and territories around the world
and serve 58 million customers each day. McDonald's operates over 31,000 restaurants
worldwide, employing more than 1.5 million people. The company also operates other
restaurant brands, such as Piles Café.

Focusing on its core brand, McDonald's began divesting itself of other chains it
had acquired during the 1990s. The company owned a majority stake in Chipotle
Mexican Grill until October 2006, when McDonald's fully divested from Chipotle
through a stock exchange. Until December 2003, it also owned Donatos Pizza. On
August 27, 2007, McDonald's sold Boston Market to Sun Capital Partners.
History

The business began in 1940, with a restaurant opened by brothers Richard and
Maurice McDonald in San Bernardino, California. Their introduction of the "Speedee
Service System" in 1948 established the principles of the modern fast-food restaurant.
The original mascot of McDonald's was a man with a chef's hat on top of a hamburger
shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald
McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped
man having puffed out costume legs.

McDonald's first filed for a U.S. trademark on the name McDonald's on May 4,
1961, with the description "Drive-In Restaurant Services," which continues to be renewed
through the end of December 2009. In the same year, on September 13, 1961, the
company filed a logo trademark on an overlapping, double arched "M" symbol. The
overlapping double arched "M" symbol logo was temporarily disfavored by September 6,
1962, when a trademark was filed for a single arch, shaped over many of the early
McDonald's restaurants in the early years. The famous double arched "M" symbol in use
today did not appear until November 18, 1968, when the company filed a U.S. trademark.

The first McDonald's restaurants opened in the United States, Canada, Costa Rica,
Panama, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden, in
order of openings.
McDonald’s Corporate Responsibility = Values in Practice

For McDonald’s, corporate responsibility is about living values each and every day. It’s
about taking action, achieving results and always maintaining open lines of communication with
customers and other key stakeholders.

McDonalds is determined to continuously improve social and environmental

performance. Mcdo work hard, together with suppliers and independent restaurant franchisees, to
strive toward a sustainable future – for the company and the communities in which we operate.

From the beginning, McDonalds have been a company committed to doing the right
thing. Today, the values continue to be the foundation for who McDonalds are, what they do, and
how they operate.

Mcdonald’s Values

McDonalds says:

“We place the customer experience at the core of all we do

Our customers are the reason for our existence. We demonstrate our appreciation by
providing them with high quality food and superior service, in a clean, welcoming
environment, at a great value. Our goal is QSC&V for each and every customer, each and
every time.

We are committed to our people

We provide opportunity, nurture talent, develop leaders and reward achievement. We
believe that a team of well-trained individuals with diverse backgrounds and experiences,
working together in an environment that fosters respect and drives high levels of
engagement, is essential to our continued success.
We believe in the McDonald’s System
McDonald’s business model, depicted by the “three-legged stool” of owner/operators,
suppliers, and company employees, is our foundation, and the balance of interests among
the three groups is key.

We operate our business ethically

Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our
business to high standards of fairness, honesty, and integrity. We are individually
accountable and collectively responsible.

We give back to our communities

We take seriously the responsibilities that come with being a leader. We help our
customers build better communities, support Ronald McDonald House Charities, and
leverage our size, scope and resources to help make the world a better place.

We grow our business profitably

McDonald’s is a publicly traded company. As such, we work to provide sustained
profitable growth for our shareholders. This requires a continuing focus on our customers
and the health of our system.

We strive continually to improve

We are a learning organization that aims to anticipate and respond to changing customer,
employee and system needs through constant evolution and innovation.

”
Corporate Social Responsibility
PHILANTHROPY

1. Sponsorship

McDonald’s has a longstanding

history of supporting premier global
events that create strong, relevant
connections with our customers in
every market around the world. Our
continued sponsorships of the Olympic
Games and the FIFA World Cup are
compelling examples of programs that
help to enrich the lives of children and
adults alike through once-in-a-lifetime opportunities and bring the spirit of these events to
life for our consumers in our restaurants worldwide.

Bringing the Games to life

-McDonald’s Champion Kids program to travel to the Games andget a chance to see
Olympic events, meet Olympic athletes, visit cultural sights and interact with their peers
from across the globe.

-McDonald’s donated funds to provide a new bus for the community center

- Coach the Coaches program was created to develop children’s love for sports by
training coaches at the local level and providing sports equipments.

-Official restaurant in feeding the athletes

-We encourage thousands of families and children to participate in community football

activities, including sponsorships, youth football schools and junior tournaments
Games Sponsored

a. The Olympic Games- McDonald’s has been a proud supporter of the Olympic
Movement for more than 40 years. As a System, we believe in the spirit of the Games
and their unique ability to engage the world in a way that is constructive, positive and
inspirational. We recognize the power of the Games to reinforce excellence, unity and
achievement among people the world over. Our goal is always to bring that spirit to our
customers. That is what our Olympic sponsorship is all about.

b. Vancouver 2010 Olympic Winter Games Environmental Efforts- The Vancouver

Games were the first Games to set a goal of being carbon-neutral. In support of the
Vancouver Organizing Committee's (VANOC) work to achieve this, McDonald's was
one of the first sponsors to volunteer to participate in a special program to help offset
indirect carbon emissions related to travel to and from the Games and accommodations
onsite. In addition, we featured energy-efficient equipment and lighting in our three
Olympic venue restaurants. McDonald’s was awarded the VANOC 2010 Sustainability
Star for waste diversion in these three restaurants, along with our sponsorship of the
Legacy playgrounds initiative. Our McDonald's Olympic Champion Crew – more than
300 of our best restaurant employees from across Canada- wore uniforms made of
recycled bamboo and plastic.

c. FIFA World Cup – McDonald’s Player Escort Program- McDonald’s has served as
an Official Restaurant of the FIFA World Cup since 1994. As a Sponsor, we bring the
world’s passion for football (soccer) to life for millions of fans through special creative
promotions, contests and in-store activations in more than 100 countries around the
world.The centerpiece of our FIFA World Cup sponsorship is the McDonald's Player
Escort Program. Through this initiative, 1,408 children ages 6-10 have the once-in-a-
lifetime opportunity to live their dreams of walking onto the field hand-in-hand with their
football heroes at the start of each official FIFA World Cup match. At the 2010 FIFA
World Cup in South Africa, McDonald’s Player Escorts represented 47 countries.
2. Cash Donations

- McDonald’s McHappy Day® – a

global fundraiser that takes place each
November.

- For every Happy Meal you buy, 50

centavos goes to Ronald McDonald
House Charities – helping RMHC
offer safe havens and opportunities for
children to learn and grow.

- Coin boxes may be found in all

McDonald’s stores so you can conveniently drop your contribution.

-Online and SMS donation “Helping Hands” campaign culminated

3. Buildings (Schools and Houses)

-It builds day care centers in

depressed areas so that low-income
families can avail of the benefits of
a typical day care center without the
expensive cost.

-McDonalds is also building houses

for the poor families

4. Scholarship Grants

-McDonalds is giving scholarship grants to deserving students.

COMMUNITY SERVICE

1. Disaster Relief

-When tragedy arrives, the McDonald’s System responds. McDonald’s employees,

franchisees and suppliers mobilize to provide assistance in many forms. Over the last
several years, our System has provided food and other assistance to victims of such
disasters as the 9/11 tragedy in New York City, Pennsylvania and Washington, DC in
2001, the tsunami in Southeast Asia and Japan, the destructive hurricane/typhoon seasons
and, most recently, the devastating earthquake in Haiti, New Zealand and Japan.

2. Bright Minds Read (BMR)

-Program aims to teach reading, prehension, and critical thinking skills to students who
are mostly first time readers. It creates educational materials specially designed to make
beginning reading more fun and much easier. It also provides training for teachers so
their lessons are easy to understand and apply.
3. Teaching Life Skills

-Seminars and trainings in preparing foods

- McDonald’s Legal Department initiated a pro bono program in 2000.Through this

program, McDonald’s works with numerous public service organizations to provide legal
assistance to low-income individuals and to help elementary and secondary students from
diverse backgrounds develop the skills, knowledge and attitudes necessary to serve their
communities as active, responsible citizens.

4. Promoting Physical Activity

-McDonalds is offering to the public the use of its sports utility which is found in every
McDonald’s store.

5. Mobile Hospital

-The mobile hospital is a “bus” equip with medical equipments, medicines and food. This
bus travels all over the globe, especially to the rural areas, where it can render free
medical check-ups and free medicines.

6. McDonalds Kids House

-McDonalds is sheltering street children. They provide all the needs of the children
including and they send this children to school.
COMMUNITY REDEVELOPMENT
Developing Farm Lands into Ecological Farms

-they promote strong farming activities

- improving conditions for tomato farm

Our commitment is to work with suppliers toward the goal ensuring that
agricultural raw materials for our products originate from legal and sustainably managed
land sources.

McDonald’s and our suppliers have taken many positive steps in the past 20 years
to improve the sustainability of our supply chain. In 2009, we established a more
comprehensive and proactive commitment to ensure that, over time, the agricultural raw
materials for our food and packaging originate from legal and sustainably managed land
sources. This commitment is guided by a long-term vision and supported by an annual
evaluation process.
EMPLOYEE DEVELOPMENT

1. Gift Giving

- McDonald’s has a gift giving

program that gives McDonald’s
corporate employees the opportunity
to receive gifts (cash/ bonus/ goods).
McDonald’s will match donations
dollar for dollar up to $5,000 for
McDonald’s corporate employees
and up to $10,000 for McDonald’s
Officers and Board of Directors of
qualified contributions in a calendar year. In 2009, more than $1 million was distributed
in matching gifts.

2. Business Integrity Line

- McDonald’s employees are encouraged to speak honestly and openly. They are
expected to raise questions or issues and, where appropriate, use the McDonald’s
Business Integrity Line - a telephone line reserved specifically for employee calls on
ethics and compliance issues.

3. Online instructions
Crew Development Program and also offers math and English instruction online via "My
Learning” on their employee online community
4. Trainings at HU
- Hamburger Universities is a state-of-the-art training center for restaurant employees and
corporate staff -- around the world.

5. Seminars and Workshops

- The core of our education framework are interactive, employee-led workshops that are
designed to practice the skills and behaviors needed to cultivate effective work habits and
lead people in an inclusive, diverse workforce. Some of our seminars and workshops
include:Intercultural Learning Lab (formerly Winning with Inclusion and
Diversity,)Asian Pacific Middle Eastern Employee Career Development, Black Career
Development, Hispanic Career Development, Women's Career Development, Lesbian
Gay Career Development

6. Employment Value Proposition

-Employment value proposition (EVP) expresses the value of what a company offers to
crew and managers that they receive in exchange for their commitment and performance
on the job. In essence, it is the promise that we make to current and potential restaurant
employees, just as our Brand Promise clarifies what we deliver to our customers and
reflects and reinforces our core McDonald’s Values and commitment to our employees
worldwide.
ENVIRONMENTAL SAFETY/ FOOD SAFETY
Preserving the environment is a priority for the entire McDonald’s System.
McDonald’s continues to make
enhancements in all aspects of its
operations to minimize environmental
impacts. For example, in many French
restaurants, used cooking oil is transformed
into biodiesel and used in McDonald’s
delivery fleet. And environmental
education programs designed to help
children understand how they can
minimize their impacts are currently under
development.

1. Energy conservation

- Find further ways to increase energy efficiency in our restaurants in order to save money and
reduce our environmental impacts

-We’re working to reduce the energy consumption in our restaurants, which in turn reduces our
environmental impacts and helps us save money. McDonald’s restaurants’ use of electrical
energy and natural gas accounts for the bulk of our restaurant greenhouse gas emissions.More
efficient use of these resources helps us save money and reduces our environmental impact.
Within the restaurant, our two key areas of focus are the heating/cooling systems and the cooking
appliances, which together account for approximately 80% of a typical restaurant’s energy use.

-They turn used cooking oils into biodiesel for their delivery trucks

2. Green peace activity

-

-Support moratorium on further illegal deforestation

-Fishing methods doesn’t harm the oceans

-recycling and composting pilots in the restaurants

-waste into bio-gas

3. Sustainable packaging and waste management

– Continue exploring ways to reduce the environmental impacts of our consumer

packaging and waste in our restaurant operations
-approximately 81% of our packing in our major markets is from renewable materials of
which 31% comes from recycled fiber.

4. Green building design

 – Enhance our strict building standards to incorporate further opportunities for
environmental efficiencies and innovation in the design and construction of our
restaurants

5. Restricting Antibiotic Use

- McDonald’s global minimum standard prohibits the use of antibiotics belonging to

classes of compounds approved for use in human medicine when used solely for growth
promotion purposes. This applies to all global suppliers where McDonald’s has a direct
relationship in the meat purchasing supply chain process. Today, this means that poultry
suppliers and our direct-relationship poultry suppliers (approximately 60% of our poultry
supply) around the world acknowledge their compliance with our antibiotic policy

6. Reducing Pesticide Use

- Working with the Integrated Pest Management Institute, the National Food Council and
growers all over the world, a McDonald's supply chain team developed a comprehensive
audit process that analyzes the use of pesticides, as well as fertilizer and water, on crops.

7. Toy Safety

-We take nothing for granted when it comes to toy

safety. We pride ourselves on working with dedicated
agencies, suppliers, safety laboratories, industry experts
and employees who work hard, every day, to make our
toys safe.