Unit 20 Assignment 1 Report
Introduction
In this report i will be comparing and contrasting the effect of two CSR issues
have had on two different businesses. I will also evaluate how a selected
business has responded to a recent environmental or social issue and
whether this response has strengthened their CSR image.
M1 Compare and contrast the effect two CSR issues have had on two
different businesses.
McDonalds
Environmental Issues
Growing worldwide concern around sustainability and ecological impact has
led to raising issues regarding McDonald's and the environment. One major
concern is the emissions of greenhouse gases by the company; it is reported
that about 1.4% of global greenhouse gas emissions are contributed to by
the fast-food giant, its operations, and production of beef, with most of the
emissions being due to the demand for beef, which is highly resource-
intensive to produce. McDonald's, however, has also been under criticism for
its production of plastic waste; millions of plastic straws and cups and plastic
packaging materials become landfill material or get washed away into
oceans every year. In 2018, McDonald's, for instance, had given out plans to
stop the production of plastic straws in several markets so as to cut down on
plastic waste. Environmental issues also happen to be another point of
contention due to the supplier conduct of the company. For instance, soy
and palm oil from their suppliers allegedly cause deforestation, which means
loss of habitat and a decrease in biodiversity. Chain Reaction Research noted
in a 2020 report that some suppliers of McDonald's were tied to
deforestation in the Amazon forest. Knowing the magnitude of these issues,
McDonald's has approved a sustainability strategy that requires 100%
certified sustainable sourcing of its coffee, palm oil, and fish and aims to
halve greenhouse gas emissions in the supply chain by 2030. However, this
does not mean the company is out of troubles with shrinking its
environmental footprint.
Consumer protection issues
, Issues of consumer protection at McDonald's have reached significant
attention, mainly in food safety, nutrition disclosure, and advertising. In
2014, McDonald's was sued in the U.S. by way of a class-action lawsuit for
allegedly misleading consumers on the health benefits of its foods and
advertising to children (source: CNN). Food safety was also raised when an E.
coli outbreak linked to contaminated salads occurred in McDonald's in
different states in 2017, leading to inquiries and pointed out, on the other
hand, the essentiality of maintaining hygiene (source: CDC). Nutrition
disclosure remains a contentious issue as well since many believe the
presence of calories on McDonald's menus since 2018 following FDA
regulations is insufficient toward solving the broader public health problem.
These critics also allege that the menu items negatively impact health
profiles relating to obesity and diabetes, with data showing that some 42% of
adults from some U.S. States are obese due to the consumption of fast food
(source: CDC). Advertisements, too, especially those targeted at children,
have been called into question for encouraging unhealthy food choices with
an ethical concern for consumer protection. It goes without saying that all
these issues have underscored the continuing requirement for more
stringent regulations, with transparency and accountability being needed to
secure basic consumer rights and health in the fast-food sector.
Nike
Environmental Issues
Since Nike is considered one of the world's leading sport apparel and
footwear companies, it faces some serious environmental challenges
concerning its production processes and supply chain. The company has
often been criticized for its environmental footprint, mainly in the spheres of
water consumption, greenhouse gas emissions, and waste generation. Nike's
2021 Impact Report speaks of a number of carbon footprint reduction
attempts, with a stated goal of 70% reduction in greenhouse gas emissions
along the supply chain by 2025, taking 2015 as the benchmark. Nonetheless,
in spite of these commitments, reports disclose that factories operated by
Nike in 2019 emitted nearly 3.7 million metric tons of CO2, thus keeping
production activities alive in their environmental hazards. Water use is
another issue; on an annual basis, Nike's suppliers are said to consume over
1.5 billion liters of water, causing water stress in areas such as Vietnam and
Indonesia, where water resources are already stretched. Also posing a threat
to the environment are the wastes and pollutions resulting from material
disposal, including synthetic fibers and dyes used in the manufacturing
Introduction
In this report i will be comparing and contrasting the effect of two CSR issues
have had on two different businesses. I will also evaluate how a selected
business has responded to a recent environmental or social issue and
whether this response has strengthened their CSR image.
M1 Compare and contrast the effect two CSR issues have had on two
different businesses.
McDonalds
Environmental Issues
Growing worldwide concern around sustainability and ecological impact has
led to raising issues regarding McDonald's and the environment. One major
concern is the emissions of greenhouse gases by the company; it is reported
that about 1.4% of global greenhouse gas emissions are contributed to by
the fast-food giant, its operations, and production of beef, with most of the
emissions being due to the demand for beef, which is highly resource-
intensive to produce. McDonald's, however, has also been under criticism for
its production of plastic waste; millions of plastic straws and cups and plastic
packaging materials become landfill material or get washed away into
oceans every year. In 2018, McDonald's, for instance, had given out plans to
stop the production of plastic straws in several markets so as to cut down on
plastic waste. Environmental issues also happen to be another point of
contention due to the supplier conduct of the company. For instance, soy
and palm oil from their suppliers allegedly cause deforestation, which means
loss of habitat and a decrease in biodiversity. Chain Reaction Research noted
in a 2020 report that some suppliers of McDonald's were tied to
deforestation in the Amazon forest. Knowing the magnitude of these issues,
McDonald's has approved a sustainability strategy that requires 100%
certified sustainable sourcing of its coffee, palm oil, and fish and aims to
halve greenhouse gas emissions in the supply chain by 2030. However, this
does not mean the company is out of troubles with shrinking its
environmental footprint.
Consumer protection issues
, Issues of consumer protection at McDonald's have reached significant
attention, mainly in food safety, nutrition disclosure, and advertising. In
2014, McDonald's was sued in the U.S. by way of a class-action lawsuit for
allegedly misleading consumers on the health benefits of its foods and
advertising to children (source: CNN). Food safety was also raised when an E.
coli outbreak linked to contaminated salads occurred in McDonald's in
different states in 2017, leading to inquiries and pointed out, on the other
hand, the essentiality of maintaining hygiene (source: CDC). Nutrition
disclosure remains a contentious issue as well since many believe the
presence of calories on McDonald's menus since 2018 following FDA
regulations is insufficient toward solving the broader public health problem.
These critics also allege that the menu items negatively impact health
profiles relating to obesity and diabetes, with data showing that some 42% of
adults from some U.S. States are obese due to the consumption of fast food
(source: CDC). Advertisements, too, especially those targeted at children,
have been called into question for encouraging unhealthy food choices with
an ethical concern for consumer protection. It goes without saying that all
these issues have underscored the continuing requirement for more
stringent regulations, with transparency and accountability being needed to
secure basic consumer rights and health in the fast-food sector.
Nike
Environmental Issues
Since Nike is considered one of the world's leading sport apparel and
footwear companies, it faces some serious environmental challenges
concerning its production processes and supply chain. The company has
often been criticized for its environmental footprint, mainly in the spheres of
water consumption, greenhouse gas emissions, and waste generation. Nike's
2021 Impact Report speaks of a number of carbon footprint reduction
attempts, with a stated goal of 70% reduction in greenhouse gas emissions
along the supply chain by 2025, taking 2015 as the benchmark. Nonetheless,
in spite of these commitments, reports disclose that factories operated by
Nike in 2019 emitted nearly 3.7 million metric tons of CO2, thus keeping
production activities alive in their environmental hazards. Water use is
another issue; on an annual basis, Nike's suppliers are said to consume over
1.5 billion liters of water, causing water stress in areas such as Vietnam and
Indonesia, where water resources are already stretched. Also posing a threat
to the environment are the wastes and pollutions resulting from material
disposal, including synthetic fibers and dyes used in the manufacturing
