Mcdonald's Corporation Managing a Sustainable Supply Chain

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os t 9-907-414 REV: APRIL 16, 2007 RAY A. GOLDBERG rP JESSICA DROSTE YAGAN McDonald’s Corporation: Managing a Sustainable Supply Chain yo In January 2007, Frank Muschetto, McDonald’s Senior Vice President of Worldwide Supply Chain, returned to his office from a meeting with Bob Langert, Vice President of Corporate Social Responsibility (CSR). Muschetto had approved the formation of an internal Sustainable Supply Chain Working Group (SSCWG) in the summer of 2006 to “develop the strategies and tools necessary to accomplish McDonald’s vision of sustainable sourcing.” Langert, a co-leader of the SSCWG, had just discussed the group’s preliminary findings with Muschetto. op As described in its latest Worldwide Corporate Responsibility Report and internal documents, McDonald’s envisioned a sustainable supply chain “that profitably yields high-quality, safe products without supply interruption while creating a net benefit for employees, their communities, biodiversity and the environment.” The SSCWG believed that McDonald’s existing sustainable supply chain efforts led the restaurant industry; however, it also identified many issues McDonald’s still needed to address in order to achieve its vision. − − How should McDonald’s prioritize sustainability relative to other supply chain goals (e.g., ensuring food safety and minimizing costs)? How should McDonald’s reconcile different sustainability expectations and priorities around the world with the understanding that local practices sometimes impact the global brand? How should McDonald’s engage suppliers, activists, and other stakeholders in its sustainable supply chain efforts? Do − No tC Muschetto agreed with the SSCWG’s assessment. He knew that McDonald’s had successfully influenced many of its suppliers to improve their social, environmental, and animal

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