Running head: EMPLOYEE DIVERSITY AT MCDONALD'S

Employee Diversity at McDonald's James Wood Sr., Lysandra Coleman, James Evans Clark State Community College MGT - 106

P. Ball May 17, 2011

EMPLOYEE DIVERSITY AT MCDONALD'S Summary/ Overview McDonalds has become one of the worlds leasing food service retailers since their

opening in 1955. They serve over 64 million customers daily with more than 32,000 restaurants, 14,000 in the United States alone. At McDonalds, diversity and inclusion are considered part of their culture. In the 1970s CEO Fred Turner established a diversity framework, and in 1980, the company hired their first official head of diversity. They think that any company that wants to have a wide, diverse customer base across the world should employ a very diverse group of people. At McDonalds, gender diversity has been identified as a global priority. This company believes it is very important to teach its employees how to work well with other people who arent like themselves. In the United States, McDonalds has seminars and workshops that include: Winning with Inclusion and Diversity; Gender SpeakWorking Together Successfully; Asian Career Development; and Diversity and Inclusion from a White Male Perspective. McDonalds also has employee networks such as: McDonalds African American Council; Womens Leadership Network; Gays, Lesbians, and Allies at McDonalds; the Asian Employee Network; and the Hispanic Employee Network. McDonalds scored and 85 percent ranking on the Human Rights Campaigns Corporate Equality Index in 2008. They passed all but one test (a gender-identity nondiscrimination policy). The company has received several recognitions in recent years for its diverse workforce, including: Financial Times UK Top 50 companies where women want to work; Fortune Magazine Top places for minorities to work; Working Mother Magazine Top 10 diversity champions; Hispanic Magazine Top 50 corporate women in America; and Black Enterprise Magazine Top 40 best companies for diversity.

EMPLOYEE DIVERSITY AT MCDONALD'S Employee Diversity at McDonald's Defining the Situation: McDonalds encourages diversity not only in their food chain but to include its supply chain. They do this because it is the right thing to do and it is good business. In order to accomplish this, they must overcome the boycott of the AFT (American for Truth) and AFTAH (Americans for Truth about Homosexuality). These two right-wing organizations are sick and tired of rewarding and subsidizing corporations that promote homosexuality. McDonalds scored an 85 percent ranking on the Human Rights Campaign's (HRC- the nation's leading homosexual lobby group) Corporate

Equality Index. McDonald's passed all but one test (a gender-identity 'nondiscrimination' policycriterion 2a). McDonald's has values which they practice in the corporate. Their values are as follows, we place the customer experience at the core of all we do, we are committed to our people, we believe in the McDonald's System, we operate our business ethically, we give back to our communities, we grow our business profitably, and we strive continually to improve. (http://www.aboutmcdonalds.com/mcd/csr.html, 2009) In order to help encourage diversity within McDonald's and their supply chains they have an educational framework which includes formal presentations, workshops, seminars, and informal training designed to practice the skills and behaviors needed to collaborate with and lead people in an inclusive, diverse workforce. McDonald's hires people as a total person and they accept the person whether they are gay or not. Just because a person is gay does not mean that his/hers ethics and behaviors will affect their performance at work. McDonald's does not stereo-type the people they hire. It is the

EMPLOYEE DIVERSITY AT MCDONALD'S employees within McDonald are which have interpersonal behaviors in return this causes a Systems-Effect in the corporatization.

The boycott on McDonald's holds the corporation back and helps people within the chains of McDonald's to keep stereo-typing the gays and lesbians which work for McDonald's. If McDonald's wants to overcome the boycott they must first overcome the differences of persons which work in their corporation. If they do this, then the boycott will not stop them or hold them back from delivering successful human relations in their organization.

Question/ Answer: 1. After reading the case study and visiting McDonalds Web site, in what ways have McDonalds taken a proactive approach toward supporting and valuing diversity? Jan Fields, President of McDonalds USA, addressed the focus of having diversity and supporting inclusion in a statement saying, at McDonalds, diversity and inclusion are part of our culture from the crew room to the board room, we are working to achieve this goal every day by creating an environment for everyone to contribute their best. (Fields, 2008) This is essential since McDonalds has stores in 118 countries and over 1.6 million employees, making the focus on diversity and inclusion an important part of their companys fabric. With this in mind McDonalds has created intercultural learning practices designed to promote diversity and more inclusiveness by providing workshops like: Inter-Cultural learning labs and Asian, Black, Hispanic, Lesbian, and Womens Career Development Programs. These are just some of the steps McDonalds has taken to support diversity.

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2. What structures and systems has McDonalds established in order to ensure that it

leverages its diversity as part of the business strategy? On May 29th McDonalds global chief diversity officer Pat Harris wrote, McDonalds is associated with countless local and national affinity groups. We have a well established and proud heritage of associating with individuals and organizations that share the belief that every person has the right to live and work in a community free of discrimination. (Ahrens, 2008) The way McDonalds proceeds to ensure that its companies make diversity part of its business strategy is making available resources providing education, support, and advocacy on behalf of their employees thru networks like McDonalds African American Council and a number of networks like Asia-Pacific, Middle Eastern, Hispanic Employee, Womens Leadership, McDonalds Gay, and Lesbian Allies Business Networks. The way these councils and networks ensure diversity within its business strategy is providing a forum for communication and information exchange within a setting of their peers of common affiliation. This association can be race, sex, or sexual orientation empowering their employees and creating a more cohesive working environment and productive employee.

3. How does McDonalds purpose to overcome prejudice and discrimination within the firm? With McDonalds being such a large employer, they have to find ways to battle prejudice and discrimination within their firm. This is no easy task with the high rate of turn-over they experience; new employees that are not use to working in such a diverse workplace may bring in their prejudices. These prejudices can be conscious or subconscious displayed in

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statements or jesters. So it is McDonalds responsibility to address these issues from the very moment an employee begins working there. To combat such behavior McDonalds has created workshops, labs, and career development centers to help develop human relations between all its diverse employees. Bill Whitman, a spokesman of McDonald USA said, haltered has no place in our culture. That includes McDonalds and we stand by and support our people to live and work in a society free of discrimination and harassment. (Ahren, 2008) McDonalds belief is that diversity and profitability are not separate. To connect it all together, their company continues to promote training, education, networking, and communication

4. What actions would you recommend that McDonalds take relative to the boycott and statements made by the AFA and AFTAH? The AFA launched a boycott against McDonalds in 2008 because, the company paid $20,000 to become a member of the National Gay and Lesbian Chamber of Commerce and to have a seat on the board of directors. Next McDonalds refused a request to remain natural in the culture war by choosing to promote the gay agenda. (Wildmon, 2006) This caused McDonalds to gain the attention of the AFA and AFTAH. The AFA and AFTAH are behaving with a forcing conflict style in their attempt to have McDonalds behave the way they would like them to. The company has made it clear to both groups that they will continue to promote equality to everyone despite outside pressure. Taking the assertive style of conflict resolution seems to have been the right stance in this situation.

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5. How do perception, attitude, values, and ethics help us to understand the dynamics within this case? To understand the dynamics within this case its appears that the two groups confronting McDonalds on its affiliations are using the forcing conflict style. Tactics such as those deployed by the AFT and AFTAH are common for these groups. They use their personal perceptions of right and wrong, ethics, and values and try to force them upon others creating a perceptual congruence. It is society who suggest what is acceptable and what it not, but it is up to the individual to determine where their own moral compass points and to follow that. The AFT and AFTAH have the right to have any view they choose but it is arrogant of them to decide for everyone else what is or isnt acceptable in regards to their values, attitude, and ethics. The same blanket of freedom of speech that covers them, they would strip the rights from others if their values differ from theirs.

6. The case indicates that the AFA and AFTAH are in conflict with McDonalds over its inclusive diversity policy. What is the alternative management style McDonalds could use to address this conflict? Due to the forcing style of conflict that the AFA and AFTAH have chosen to take by boycotting the McDonald Restaurants the company should use the assertive and avoiding behavior style. This would identify the companies stance on the issue of them being on the board of the National Gay and Lesbian Chamber of Commerce and they werent going to be forced into compromising the attitude toward the gay community.

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If the AFA and AFTAH would continue to pressure McDonalds then they should use the avoidance style when dealing with the two groups. Due to the size of McDonalds in comparison with both groups, the avoiding style would prevent giving the much smaller groups a larger stage to solicit support from a larger venue. The AFA and AFTAH boycotted Ford Motors over gay oriented ads. Fords strategy was to avoid the pressure from the AFT and continue business as usual without any real impact on the company. This strategy will also work for McDonalds.

7. Should McDonalds use a team approach for solving this problem? McDonalds as a company should remain united on their stance of an equality and diversity within the workforce. This has been a driving factor for the companies success world wide. Taking the skills and abilities from all groups and organizations and applying them directly into the fabric of the companies values while strengthening their resolve when facing attack from group like AFA. McDonalds has reinforced time and time again that their employees are more than a team, but a family. This concept alone defuses the attacks of the groups boycotting them on their choice to support internal and external acceptance of diversity. They should just continue to be united when facing this attack and avoid engaging in any exchange with the AFT and AFTAH.

EMPLOYEE DIVERSITY AT MCDONALD'S 8. How might McDonalds organizational culture have led to the problems described in this case?

The way McDonalds may have contributed to opening themselves up to attack is their diverse organizational culture itself. Not saying that they are at fault, in reality they should be commended, its just there are so many groups and organizations that want to push their views on others. Or they choose to challenge the views that others have. So, for these companies who have varied and diverse organizations like McDonalds are really just platforms for these group to pronounce their views.

Reactions: As a group we do not understand the boycotting of McDonalds due to their courageous stance on equality within the work force. McDonalds scored an 85% on the Human Rights Campaign and offer many different organizations throughout their company to promote diversity and inclusion. The case of McDonald's and the boycotting of the organization by the AFA and AFTAH seem motivated by self-serving attempts to gain publicity for the opportunistic protesting groups. McDonald's has a long lasting history of diversity and inclusion of all races and groups. The intolerance of the AFA and AFTAH toward homosexuals is no different than the intolerance of some of other intolerant groups throughout history.

EMPLOYEE DIVERSITY AT MCDONALD'S Recommendations: Due to the track record of McDonald's and its focus on diversity and inclusion, we would suggest the company use the avoidance style when dealing with this conflict. We also recommend that they keep up with what

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they are doing and keep promoting diversity. They will get more praise than criticism for this. Finally McDonalds should continue to work toward bringing their score of 85% up even higher to reinforce their commitment to diversity and inclusion.

EMPLOYEE DIVERSITY AT MCDONALD'S References Aherns, F. (2008, July 4). Gay-Marriage Opponents to Boycott McDonalds.

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Washington Post. Retrieved from http://www.washingtonpost.com/wpdyn/content/article/2008/07/03/AR2008070303769.html

Global Inclusion & Intercultural Management. (2011). Retrieved from http://www.aboutmcdonalds.com/mcd/our_company/diversity.html

Sowell Harris, P. (2009, September 12, 2009). None of us is as good as all of us. Internal Newsletter, McDonald Home Website.

Wildmon, D. E. (2008). American for Truth about Homosexuality. Retrieved from http://americainsfortruth.com/news/afa-mcdonalds-does-it-againsponsoring-homosexuality-cat