What If We All Get Fat? Corporate Social Responsibility to Public Health

Corporate Social Responsibility (CSR) is a growing trend in the corporate world today, becoming a necessity for large organizations to maintain a good brand reputation. This is because consumers are becoming increasingly more conscious of the social and environmental influence that large organizations have in a global context. As stated by McDonald's Chief Executive Officer, "consumers are more discerning than ever about the brands they choose. When making purchase decisions, they consider not only the quality of a company's offerings, but the integrity of its actions." This is especially true for organizations with products that are socially perceived as contributing to societal problems, such as obesity. This is the problem faced today by many large fast-food chains such as McDonald’s. In response to growing public concern regarding obesity and other related health complications, McDonald’s has taken several initiatives to positively influence consumer behavior.



Obesity has become an epidemic crisis affecting the lives of millions around the world. Arthur Guarino explains that obesity is more than a personal health issue; it also has economic ramifications including medical costs and the cost of health insurance businesses provide employees, diverging of financial assets from areas such as research and development, lower productivity in the workforce, as well as the impact on children and young adults which represent the future workforce. Increasing rates of obesity as well as countless other health problems related to diet have attracted a great deal of attention to fast-food chains which many people insist to be the culprit. There is public debate regarding whether the responsibility of health lies with the company or the individual. While the market is a representation of consumer demand, many feel as though companies have a responsibility to address societal concerns even if the company cannot assume all responsibility for consumer behavior.

While a company cannot force consumers to signal demand for healthier consumables, McDonald’s has taken several large initiatives to influence consumer behavior while presenting healthier alternatives. These efforts include providing healthier menu options, reducing portion sizes, reducing salt and sugar contents, as well as promoting healthy lifestyles and nutritional information as a central focus of their brand communications; especially when targeting children. Additionally, the company provides grants to fund school health programs. These steps have allowed McDonald’s to remain profitable while progressively shifting the paradigm of consumer eating habits. This is indicative of their awareness of a ‘triple bottom-line,’ ensuring that demanded products remain available to ensure profitability while also addressing social and environmental concerns from the leverage afforded by the market.

Stakeholder Analysis

Considering the global impact of fast-food chains and the overwhelming socioeconomic problems resulting from poor diet, it could be argued that everyone is a stakeholder in this case. Key stakeholders for McDonald’s in particular are executive management, employees, customers, shareholders, as well as those affected by the company’s communications. The perpetuating effect of these health issues reaches far beyond those that interact with the company directly, affecting society at large. For example, increasing health costs results in greater employee health insurance expenses which impacts the company as well as the economy as a whole by forcing companies to raise their prices. It can also be noted that companies must produce larger clothes, machines, seats, etc. in response to larger people. This is a waste of resources and time that could be invested in more productive areas. Finally, these health complications decrease workers’ productivity which slows the economy and decreases a nation’s ability to compete in a global market. For these reasons and more, we are all stakeholders in an issue affecting public health in such a broad context.

Analysis Based on Ethical Theory

Obesity has become so prevalent today, particularly in the United States, that being overweight has become a social norm. For many, it has become a generally accepted condition that little can be done about. Some see the epidemic as being directly influenced by overconsumption of fast-food products and demand that companies assume responsibility for the consequences of their products. Others argue that a company only represents what consumers demand and each individual is responsible for their own choices. With such massive social implications, this is a problem that must be addressed from a variety of positions. A company lacks the ability to force consumers to change their eating habits, as to completely change their product selection could have terminal implications for the company. The company does have a role in the transition, but it assumes that individuals share the responsibility rather than blaming their behavior on the availability of the product.

From a deontological perspective, one could insist that it is the right of a company to maximize profits by catering to consumer demand. After all, a company’s existence is dependent on profit, for without it the company lacks the resources to supply the goods that consumers demand. The organization supplying the demanded goods in exchange for profit creates a mutually beneficial relationship between the organization and the consumer. One could argue that it is the duty of the consumer to demand healthy products, as a product that does not sell will not remain on the market. However, since both sides benefit from this transaction, it seems only fair that each side shares the responsibility. A child, for example, does not have the information resources available to make good decisions regarding health, unless they are educated to make these decisions. It should be noted that while the relationship between the company and consumer is mutually beneficial, it is also mutually dependent. A company should not want their products contributing to health conditions that decrease their customers’ lifespan, economical value, and overall quality of life for it would be contrary to the sustainability of their company. Ethically speaking, the company’s duty to the health of the consumer could be derived from Kant’s categorical imperative. To universally wish for consumption of food that results in serious health problems would be wishing for health problems oneself. Since this doesn’t stand to reason, it can be assumed that the company shares the ethical duty to contribute to the restoration of public health.

A utilitarian solution would be the one “that creates the greatest happiness or good for the greatest number of people." One proposition of achieving this from the company’s perspective would be just what McDonald’s has done by continuing to offer traditional products with less unhealthy ingredients while also adding additional choices to those who wish for healthier options. Additionally, the company promotes healthy living and provides nutritional information to educate consumers and influence better eating habits. In this way, consumers still have a choice and as their attitudes change, the healthier options will be available. As more consumers signal demand for healthier products, they will progressively replace the unhealthy options; creating a new paradigm for the fast-food industry.

Conclusion and Recommendations

In response to public concern, McDonald’s has made great strides in their effort to influence consumer eating habits to healthier alternatives. While the company has a financial responsibility to fulfill consumer demand, it also shares the responsibility to take interest in the health of its customers. In light of this responsibility, McDonald’s has initiated a thorough plan to offer healthier alternatives while educating consumers in an attempt to provide them with the resources to make better eating decisions. Education is the most vital component to truly affect change, because ultimately consumers decide what products are on the market. Consumers should be aware of the health implications of their eating habits as well as the impact of their consumer choices on the market.

A proposition for McDonald’s would be to create a reward program associated with their healthy menu items. Customers would receive points on a card for each healthy item that they purchase which could be used to redeem prizes on a website which additionally provides health and nutrition information. When accessing the URL to the website, it could automatically play a short video explaining the health threats associated with obesity and things that can be done to avoid these threats, followed by directions for accessing more information. Redeemable prizes could include sports and exercise equipment such as balls and jump ropes to encourage physical activity. This program would increase demand for healthy products, educate consumers by getting them in front of the information, encourage physical activity, and create a more interactive relationship between the consumer and the brand.

References

Fortunato, J. A. (2011). Confronting Obesity: A Case Study of the Corporate Social Responsibility of McDonald's. Advances In Management, 4(11), 20-23.

Guarino, A. S. (2013). An American Dilemma: The Financial Costs and Economic Impact of Obesity in the United States. Advances In Management, 6(7), 3-7.

Business Wire. (2012). Research and Markets: McDonald's Case Study: Remaining Relevant in a Health Conscious Society. Business Wire (English).

PR Newswire US. (2013, April 29). Southern California McDonald's announces $25,000 in grants to help fund school health programs. PR Newswire US.

Gilbert, J. (2012). Ethics for managers: Philosophical foundations and business realities. New York, NY: Routledge.